Labour's Proposal
Labour has announced plans to ban big bonuses for water bosses if their companies continue to pollute rivers and lakes. The party intends to grant regulator Ofwat the authority to withhold bonuses if high levels of raw sewage are pumped into water bodies.
Bonus Blocks
Last year, six out of nine water chiefs would have had their bonuses blocked under Labour's proposals due to pollution levels. According to Labour research, 22 water bosses paid themselves a total of £24.8 million in 2021/22, including £14.7 million in bonuses, benefits, and incentives.
Shadow Environment Secretary's Criticism
Shadow Environment Secretary Steve Reed argues that the regulatory rules for the water industry are "broken" after 13 years of Tory government. He highlights the presence of "stinking, toxic sewage" in rivers, lakes, and seas and expresses concern that consumers are burdened with costs while CEOs pocket millions in bonuses.
