Labour has announced its intention to prohibit significant bonuses for water industry executives if they fail to address pollution issues, according to recent reports. Proposals put forth by the party would grant regulatory body Ofwat the authority to withhold bonuses from water companies that persist in discharging high volumes of untreated sewage into rivers and lakes.
High Pollution Levels Jeopardize Bonus Payments
The plan comes as a response to findings that six out of nine water company chiefs would have had their bonuses blocked last year due to pollution levels. The blocked bonuses amounted to £24.8 million in total for 2021/22, including £14.7 million in bonus payments, benefits, and incentives.
Labour Condemns Industry Regulation as "Broken"
Shadow Environment Secretary Steve Reed criticized the current regulatory framework governing the water industry as "broken." He also accused the Tories of allowing sewage pollution to harm the environment while consumers bear the financial burden.
