Bonuses at six water companies that are not meeting high standards will be banned following a new government law.
The ban is part of a strategy to clean up our rivers, lakes and seas, and modernise the water sector for decades to come.
Paddle UK, as part of the End Sewage Coalition and Clean Water Sports Alliance, has been campaigning for the bans.
Water bosses awarded themselves over £112m in bonuses in the last decade.
‘Entirely justified’
Under new rules, companies are not permitted to pay bonuses to water bosses that oversee poor environmental and customer outcomes.
Ben Seal, Head of Access and Environment, said:
“When something so precious as our nation’s water is on the line, public outrage at water executives pocketing big bonuses for failing to prevent pollution, is entirely justified.
“It is positive to see the steps taken through the new Water Special Measures Act beginning to take effect.
“Let’s hope that blocking the payment of these bonuses is just another means of helping focus minds on driving up environmental performance, rather than prioritising profit”.
The law, which comes in to affect from 6 June, delivers on Labour’s key manifesto commitment.
It has been backdated to apply to any bonuses relating to the financial year from April 2024.
Thames Water, Yorkshire Water, Anglian Water, Wessex Water, United Utilities, and Southern Water, are the firms affected.
Calls for Stronger Water Sector Regulations ‘falls short’ of radical overhaul
Ben Seal, Head of Access and Environment at Paddle UK, has his say on the the Water Commission findings.
The Water Commission, Chaired by former Deputy Governer of the Bank of England, Sir Jon Cuniliffe, has released its interim report into the failing water sector.
The report has exposed failings in water company governance and financial controls, shortcomings in political planning and prioritisation, and a lack of cross-sector coordination and accountability for environmental management.
The interim report stops short of final recommendations, which will come later in the summer. It does however make reference to public health throughout its commentary.
‘Modest interventions’
Rather than proposing a bold radical overhaul of the system, which many campaign groups had called for, the report seems to be leaning toward a number of more modest interventions in key areas.
While the full report will be released later in the summer, the interim findings appear to be suggesting a more regionalised means of planning and managing water, with greater stakeholder involvement in decision making.
It also talks about the regulators for England and Wales, not just having more people and more resources, but also having modern technology so that they can effectively monitor and hold companies to account.
On the role of Ofwat, Sir Jon is suggesting that OFWAT needs to be positioned much closer to companies, overseeing and and monitoring them continuously, so interventions can be made sooner and improvements made.
However, all of this must be underpinned by clearer, long term strategic direction from the Government, which the report states clearly, has been severely lacking.
‘Mixed reaction’
On public health, the Water Commission report suggests that a rationalising or streamlining of the complex legislation and regulation for water, could offer an opportunity to consider.
Elsewhere, the report suggests that a review of environmental targets could recognise public health in future.
The interim report by the Commission has received mixed reaction.
Both Surfers Against Sewage and River Action have come out strongly, saying the recommendations fall well short of the scale of change that is required.
The Water Commission report is the second step in Labour’s attempt to tackle a water sector suffering plummeting public trust over its record on the environment and public health.
Earlier this year, the Water (Special Measures) Act received Royal Ascent, which brought in the threat of jail sentences for water bosses who obstruct environmental investigations.
Paddle UK and the Clean Water Sports Alliance await the full report later this summer.
Hopefully the Commission will bring forward clearer, more detailed proposals on how to better safeguard the health of recreational users in future.
