Water Company Executives Awarded £15 Million Despite Pollution and Bill Hikes
Top executives at England's water firms have collectively received more than £15 million in pay and benefits over the past year, according to exclusive research. This substantial financial reward comes at a time when serious pollution incidents have surged and customer bills continue to rise sharply.
Channel 4 Drama Highlights Sewage Crisis
The revelations emerge just before the broadcast of a hard-hitting Channel 4 television drama titled Dirty Business, which begins airing on Monday. The programme dramatises the real-life tragedy of the Preen family, whose eight-year-old daughter Heather died in 1999 after contracting E. coli O157 on a Devon beach. Her family believes raw sewage contamination was responsible, though South West Water has consistently denied any liability.
The drama also criticises the Environment Agency for its regulatory role and targets Thames Water, the nation's largest supplier, which is struggling under massive debt and potentially faces a taxpayer-funded rescue. The programme alleges Thames Water permitted significant raw sewage discharges into an Oxfordshire river.
Mounting Public Anger Over Industry Failings
Water companies are facing intense public scrutiny over escalating customer bills, which fund decades of underinvestment in ageing infrastructure. This has resulted in persistent leakages and the routine release of untreated sewage into rivers and coastal waters. Average bills jumped by 26% last April, reaching approximately £603, with further increases scheduled for this April.
Public outrage has been compounded by revelations of generous executive compensation packages and substantial dividend payments to shareholders, many of whom are wealthy foreign investment entities. Analysis indicates that water suppliers declared over £900 million in dividends during the period.
Executive Pay Details and Pollution Records
New analysis conducted by the Mirror and the GMB union shows that chief executives of nine water and sewage companies in England and Wales, along with five water-only suppliers, netted a total of £15.1 million in the last financial year.
Liv Garfield, the longstanding chief executive of Severn Trent Water, was the highest-paid, receiving nearly £3.3 million, including an £830,000 salary and £2.3 million in bonuses. Her total compensation since 2016 amounts to £29 million. However, Environment Agency data shows pollution incidents in Severn Trent's operational area increased from 278 in 2023 to 300 in 2024, with one classified as serious. The company was fined £2 million the previous year for discharging large volumes of raw sewage into the River Trent.
Susan Davy, chief executive of Pennon Group, which owns South West Water, was paid over £800,000 last year. South West Water declared a £125 million special dividend in July, though accounts note it remains unpaid. The company recently agreed to a £24 million enforcement package for failures in managing its sewer networks.
Nicola Shaw, boss of Yorkshire Water, received £1.35 million, comprising £689,000 from the company and £660,000 in fees from owner Kelda. Yorkshire Water was highlighted by the Environment Agency after serious pollution incidents rose from five to thirteen in 2024. The company paid a £37.5 million dividend to Kelda, though it states these funds were retained within the business.
Chris Weston, chief executive of Thames Water, was paid just over £1 million in the last financial year, during which the company reported a £1.6 billion loss. He received a £195,000 bonus for his first three months in the role.
Industry and Union Responses
Gary Carter, GMB National Officer, commented: "Nothing has changed; this latest bonanza shows water companies are still splashing out on whopping bonuses despite legislation to stop it. Meanwhile bills rocket, water workers face abuse and pollution continues to flow into our waterways. The public will be rightly furious. Something has to give. The Government must fundamentally change how the water sector operates."
Yorkshire Water stated: "People are rightly concerned about water quality in their rivers and coast, and we’re sorry for the impact that pollution incidents have had on local communities and the environment. No pollution incident is acceptable."
Severn Trent Water defended its pay structure, noting that nearly three-quarters of Liv Garfield's compensation was variable and linked to performance targets. The company also highlighted a record £15 billion investment in infrastructure upgrades.
South West Water addressed the Dirty Business drama, expressing sympathy for the Preen family while noting that investigations at the time did not establish a definitive source of the E. coli infection.
Broader Environmental Concerns
The Environment Agency reported a 60% increase in serious pollution incidents by water companies in 2024, with a record 2,801 incidents overall in England. Seventy-five of these were deemed to pose serious or persistent harm to fisheries, drinking water, and human health.
The ongoing controversy mirrors public sentiment seen during the ITV drama Mr Bates vs The Post Office, which led to legislative changes and the return of honours by former executives. As water companies continue to face criticism over executive rewards, environmental damage, and rising costs, calls for systemic reform of the sector are growing louder.
