Tom Gordon calls for outright ban on water boss bonuses after Ofwat announcement

Tom Gordon, Liberal Democrat MP for Harrogate and Knaresborough is calling on the Government to urgently enshrine an outright ban on bonuses for water company bosses in law.

It comes as Ofwat announced bans on three water companies using customer money to fund bonuses - a move that the Liberal Democrats do not believe goes far enough. The regulator’s Chief Executive has also admitted that water bills are likely to go up more than expected next month. 

Shockingly, Yorkshire Water’s chief executive, received an eyewatering £371,000 in bonuses back in July. This came amidst continued sewage outflows and an announcement about increases in customer bills. 

In total, water firms paid a total of £9.3 million in bonuses over the last financial year, Ofwat admitted. The Liberal Democrats are pushing for changes to the Government’s Water (Special Measures) Bill, which would see a ban on water company bonuses until sewage spills end and leaks are fixed. 

On the 20th November, Liberal Democrats in the House of Lords secured assurances from the government that Ofwat will ban bonuses when water companies have committed pollution incidents, including sewage spills.

Tom Gordon, Liberal Democrat MP for Harrogate and Knaresborough, said: 

“The Nidd and other rivers in Yorkshire have been pumped full of raw sewage by Yorkshire Water, who have been putting profit before people for far too long. 

“The previous Conservative Government gave water companies a free pass to dump filth into our precious waterways while taking home eyewatering bonuses on top of inflated salaries.

“The Labour Government must to listen to the Liberal Democrats and finally put a stop to sewage dumping, by prioritising the Water Bill in parliament and enshrining a ban on bonuses as quickly as possible.

“Those who actively wreck local environments in Yorkshire and across the country should not be rewarded for doing so. Enough is enough.” 

ENDS

Thames Water bonus information was reported by the BBC 

Figures on total bonuses was reported here