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.

Yesterday, a Labour motion to the House of Commons called 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 Northumberland faced with an average £75 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 Deputy Leader, Liz Simpson 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 Northumberland are now expected to pay £75 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.”