Water boss' pay 'scandal' makes a splash with unions

Water company chiefs have faced backlash after receiving a total of £58m in salary, bonuses, pensions and other benefits over the last five years as customers face above-inflation increases in their water bills.

Last year the nine bosses of England’s privatised water and sewage companies netted £11.3m last year according to figures compiled from annual accounts by the GMB union, leading to the union deriding the fact that 'fat cats' were earning "staggering sums".

Tim Roache, GMB’s general secretary, said: "It's a national scandal that over the last five years England’s hard-pressed water customers have been forced to splash out £58m through their bills to go into the pockets of just nine individuals. Privatisation of the water industry has been a costly mistake and these eye-watering sums are further proof the water industry must be returned to public hands."

The average pay of the nine bosses was £1.254m in 2017

While the bosses have enjoyed soaring pay, customers have seen water bills rise by 40% above the rate of inflation since privatization in 1989, according to a report from the National Audit Office.

Industry regulator Ofwat said it has repeatedly told water companies that they must ensure pay better reflects customer service, while politicians have also put pressure on the firms.

Rebecca Long Bailey, the shadow business secretary, said: "It's scandalous that the government is sitting idly by while households continue to face skyrocketing water costs. Labour will end their failed ideological experiment and bring water companies back into public ownership, saving households £100 per year on their bills."

Environment secretary Michael Gove also attacked water companies, stating that Anglian Water and Southern Water paid no corporation tax last year, while Thames Water has not paid the tax for a decade.