The GMB union has launched a campaign to renationalise the water sector with a hard-hitting attack on the salaries paid to water company chief executives.
According to the trade union, the heads of England’s privatised water and sewerage companies together received £11.3 million in 2017, taking home an average of £1,254,000 – six times more than the Prime Minister
The figures come from a joint investigation into their company accounts by GMB and Corporate Watch revealed at GMB’s 101st Congress in Brighton this week.
The figures have been released today as the GMB, the union for the water industry, launches its ‘Take Back The Tap’ campaign to bring England’s privatised water industry back into public ownership.
The figures show that through a combination of salary, bonuses, pensions and other benefits that the average package for a privatised water company in 2017 was £1,254,000.
The CEO of Severn Trent topped the list, receiving £2,450,700 in 2017 - a 50% increase since 2013, according to the GMB, while the CEO of United Utilities received £2,310,000 - a 49% increase.
The union also flagged up that consumer water bills in England and Wales have increased by 40% above inflation since privatisation in 1989, according to a report by the National Audit Office.
Tim Roache, GMB General Secretary, said:
“It is a national scandal over the last five years England’s hard-pressed water customers have been forced to splash out £58 million 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.
“GMB is urging people and politicians to Take Back the Tap and make our water services work for the many and not the few. Water is the most natural monopoly and should be in public hands.”
Water UK - bills cost roughly same as 20 years and sector has seen major ahievements since privatisation
Water UK, the organisation which represents all the UK water companies, was quick to respond by pointing out that at about £1 per day bills were roughly where they were 20 years and highlighting major improvements in infrastructure achieved since privatisation.
Commenting on the campaign, Water UK Chief Executive, Michael Roberts said:
“Water companies have invested around £150 billion on improvements and infrastructure in the last 30 years, and continue to spend £8 billion a year to keep on improving. Thanks to this large investment, we’ve seen leakage reduced, drinking water quality improved, a better environment, and bills are roughly where they were 20 years ago – about £1 a day – and people need to ask themselves whether a water industry owned and run by the government would invest the same money and deliver the same good results for customers.
“Since privatisation, customers are 5 times less likely to suffer from supply interruptions, 8 times less likely to suffer from sewer flooding, and 100 times less likely to have low water pressure. If the water industry was owned and run by the government in England, it is far from obvious that it would be a priority for Ministers, given the pressures they face to spend on areas like health and education.”