Labour to give water regulator powers to ban bosses’ bonuses as customers in Stratford on Avon face £139 bill increase per year
Labour will give Ofwat the powers to ban the payment of bonuses to water bosses who are found to pump significant levels of raw sewage into our rivers, lakes, and seas.
On Tuesday the 5th December, the government ignored a Labour motion to the House of Commons calling on the Government to empower Ofwat to ban the payment of bonuses to executives whose companies are discharging significant levels of raw sewage into the UK’s waterways.
This comes as a BBC Panorama investigation found evidence of a water company covering up illegal sewage discharges, making sewage pollution disappear from the official figures. Whistle-blowers at the Environment Agency told Panorama the company was wrongly downgrading pollution incidents and that the agency was failing to conduct independent checks.
Despite high levels of sewage pollution and corruption, consumers in Stratford on Avon faced with an average £139 hike a year in their water bill.
Labour’s Environment Secretary, Steve Reed MP, condemned Conservative negligence and the drastic price hike, and called on the water industry to be put under “special measures”.
Boosting the regulatory powers of the water regulator will mean water bosses who fail to meet high environmental standards on sewage pollution will be met with significant sanctions to ensure they cannot profit from damaging the environment.
While the Tories have allowed Britain’s waterways to become an open sewer, under Labour’s new plans, Ofwat would have been able to block six out of nine water bosses’ bonuses last year due to high levels of pollution.
According to company reports from 2021-22, the bonus pool for executives stood at an average of more than £600,000 at each company. In total, 22 water bosses paid themselves £24.8m, including £14.7m in bonuses, benefits, and incentives, in 2021-22.
This is part of Labour’s wider plan to put the water industry under “special measures” which includes:
- End self-monitoring and force all companies to monitor every single water outlet.
- Ensuring that water bosses will face personal criminal liability for extreme and persistent lawbreaking.
- Introducing severe, automatic fines for illegal discharges.
Labour’s Shadow Environment Secretary, Steve Reed MP, said:
“This Conservative Government has wilfully turned a blind eye to negligence at the heart of the water industry. The result is stinking, toxic sewage destroying our countryside.
“Despite this gross negligence, consumers in Stratford on Avon are now expected to pay £139 more a year, whilst bosses are pocketing millions in bonuses.
“With Labour, the polluter – not the public – will pay. Water companies must immediately be placed under special measures.
“Labour will strengthen regulation to make sure every single water outlet is monitored so we know the true extent of this sewage crisis. Water bosses who continue to oversee law-breaking on the scale now becoming apparent will face criminal charges, and we will give the water regulator powers to block payment of any bonuses until water bosses have cleaned up their filth.”
Labour Councillor Jason Fojtik said ‘Only Labour will take the steps needed to clean up our rivers, lakes and coasts. As was said in Parliament on Tuesday, “The Liberal Democrats often claim that they are very interested in sewage, yet they fail to mention that the water Minister between 2013 and 2015 was the former Member for North Cornwall, a Liberal Democrat. What did he do to improve the situation? Nothing.”’