Water industry regulator Ofwat is facing significant criticism after awarding its chief executive, David Black, a substantial pay rise at a time when consumers are struggling with rising water bills.
The move has sparked outrage, as many feel it rewards failure instead of addressing the ongoing issues within the water sector.
Pay Hike for David Black
According to recent reports, Black’s salary has increased by at least £15,000, bringing his annual earnings to between £180,000 and £185,000.
This makes his pay higher than that of the UK Prime Minister, who earns just under £167,000.
The news comes at a time when households in England and Wales are bracing for average water bill increases of £10 per month, and many consumers are frustrated with the rising costs and the ongoing sewage problems.
Public Outcry Amid Record Bills and Water Industry Issues
As Black’s salary rise is revealed, the public’s frustration is growing.
Many feel that the water industry, which continues to increase prices while failing to tackle issues like sewage seeping into rivers, is letting consumers down.
The pay hike has come under particular scrutiny with the revelation that Black is currently on annual leave, even as water companies launch appeals against Ofwat’s recent price rulings.
Calls for Action Against Ofwat’s Effectiveness
Critics are voicing strong discontent with Ofwat’s performance, especially given the current state of the water industry.
Liberal Democrat MP Alistair Carmichael, who chairs the Commons’ environment, food, and rural affairs committee, expressed that Black’s pay rise felt like rewarding failure.
“Water company customers are facing massive hikes in their bills, and seeing bosses paid huge salaries, now with the chief executive of the regulator earning more than the Prime Minister, is only going to add to the frustration,” Carmichael stated.
The Impact on Consumers and Campaigners
Cat Hobbs, director of the “We Own It” campaign, which advocates for the public ownership of water companies, also condemned the pay rise.
With companies like Thames Water on the brink of collapse and raw sewage continuing to be pumped into waterways, Hobbs believes that Ofwat’s failure to hold the water companies accountable is unacceptable.
For many billpayers, the pay rise feels like a slap in the face, especially at a time when they are already struggling to cope with the rising costs.
Ofwat Defends the Pay Increase
Despite the criticism, Ofwat defended the pay rise, stating that it was appropriate given the complexity and challenges of the role.
The regulator’s spokesperson explained that Black’s salary was reviewed by a special committee and benchmarked against other similar regulatory organisations.
The committee deemed the increase necessary, citing the need to remain competitive in attracting and retaining top talent for such a demanding role.
The increase also complied with Government pay guidance for senior civil servants.
Ongoing Disputes Over Water Company Price Rulings
Meanwhile, Thames Water, which serves 16 million customers, is appealing against Ofwat’s decision to limit its bill increases to 35% over the next five years.
Other water companies are expected to follow suit, with the deadline for appeals approaching this Tuesday.
Although Ofwat’s sources indicated that Black didn’t need to be directly involved in these appeals, many critics argue that his absence while on leave highlights a lack of accountability in the water regulation process.
As these issues unfold, many remain concerned that Ofwat’s focus is more on protecting its own leadership than addressing the real challenges faced by consumers across England and Wales.