Water firm bosses pocket £25m in bonuses

Chief executives receive millions in incentives as concerns deepen over toxic sewage spills

WATER bosses have pocketed more than £25 million in bonuses, benefits and other incentives since the last general election despite concerns over sewage spills, new analysis has found.

Data compiled by Labour shows the chief executives of nine water companies in England have received millions of pounds on top of their standard pay packets over the past four years, while household bills are set to rise to help fix the crisis in Britain’s waterways.

The party has accused the Government of turning “a blind eye” to issues at the heart of the water industry, resulting in “stinking, toxic sewage destroying our countryside”.

To address the problem, Labour has pledged to give water regulator Ofwat new powers to ban company bonuses if firms are found to be illegally polluting Britain’s rivers, lakes and seas.

It said it will also end self-monitoring, make sure bosses face personal criminal liability if there is “extreme and persistent” lawbreaking, and introduce “severe and automatic” fines for wrongful discharges.

Water companies are permitted to release sewage from overflow pipes, but this should be done on rare occasions and only in extreme weather to stop the system being overloaded.

Labour found that water chiefs have received more than £10 million in bonuses, and nearly £15 million in incentives since the 2019 General Election. That includes £1.4 million in bonuses last year, less than half the £3.1 million paid in the previous year.

It comes as water companies are set to charge consumers more than £150 extra per year to help fund a solution to the sewage crisis. This means the typical English household’s bill will rise from £425 to £575, in 2022-23 prices.

A spokesman for Water UK, a trade association, said: “We agree that any financial reward should be tightly linked to performance – including protecting the environment. It is also right that regulators have all the powers they feel they need to hold water companies to account. It is clear the only way to the change we all want to see is through significant investment. Water companies have set out plans for the biggest investment in the sector’s history.”

A government spokesman said: “Our Plan for Water is delivering more investment, stronger regulation, and tougher enforcement – and we have already been very clear that water companies must never profit from environmental damage.”