UK bans bonuses for water company bosses over sewage spills

The United Kingdom (UK) government bans bonuses for water company bosses over sewage spills that contaminate rivers and lakes. It applies to those water company bosses in England and Wales who do not take action to stop unauthorized sewage spills that contaminate rivers, lakes, and oceans. They will not be eligible for bonuses from the UK government.

Several activists from the Liberal, Democrats, and Labour parties have also forced the government to apply the policy in response to public outcry over the extent and effects of recent unlawful raw sewage dumps.

Water bosses in England and Wales face bonus bans for illegal sewage discharges https://t.co/qZhQWfKYIW
— The Guardian (@guardian) February 11, 2024

The environment secretary, Steve Barclay, has proposed to stop rewarding the bosses of companies who pollute water illegally. In this regard, the UK government bans bonuses for water company bosses. Hence, this ban condition would begin in April of the 2024-2025 fiscal year.

The bosses of water companies received more than £26 million in bonuses, benefits, and incentives. They received bonuses despite unlawfully disposing of large volumes of sewage in waterways during the previous four years.

Senior executives from five out of the eleven water corporations that handle sewage received bonuses last year. However, the executives at the other six companies declined bonuses following public outrage.

Meanwhile, water corporations revealed intentions to raise annual customer costs by around £156. The purpose is to cover expenditures meant to stop the 140,000 sewage overflow spills that happen each year.

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The Water Services Regulation Authority Ofwat will consult on the potential terms and conditions of the ban later this year. However, Steve said the penalties should apply to any water company that had committed extreme criminal violations.

According to the Department for Environment, Food, and Rural Affairs, if the government investigates the two dangerous types of pollution, they could ban the bonuses.

It involves causing significant pollution at a bathing site or conservation area. And if the government finds the company guilty of some serious management failings. This condition may apply to chief executives and all executives’ board members of water companies.