East Thanet MP Polly Billington has led calls from Labour MPs across the South East for the CEO of Southern Water to turn down “an outrageous two-year pay ‘incentive” of more than £600,000, on top of his regular salary.
The MPs have written to Lawrence Gosden after it emerged he was awarded £691,000 under a two-year long-term incentive plan in addition to his salary of £687,000. This means Mr Gosden is receiving the first half, £345,600, this summer with the sum paid for by shareholders.
The group of MPs say it is ‘pure greed’ to accept such a huge sum amid “skyrocketing consumer bills, widespread sewage dumping, and water outages.”
Polly Billington and the MP for Hastings and Rye, Helena Dollimore MP, organised the letter which has been signed by every Labour MP whose constituents are Southern Water customers.
Bonus ban
The letter comes in the wake of Southern Water being banned from paying executive bonuses under the Labour Government’s new Water (Special Measures) Act, which introduced new measures to hold failing water companies accountable.
Southern Water says the LTIP (long term investment plan) was not an attempt to circumnavigate the bonus ban introduced last month as it was brought in two years before the ban existed.
Yesterday (21 July) the Environment Secretary, Steve Reed, confirmed the pay award being received by Lawrence Gosden was introduced prior to Labour’s new rules being in place, meaning that no similar payment could be made in the future.
The letter
In the letter, the MPs say: “We do not believe this massive payout is justified and would urge you in good conscience to decline it.
“Your tenure has also seen water outages for tens of thousands of households, major flooding in Hastings that saw people evacuated and businesses destroyed, and sewage spilled regularly across the South East.
“The ban also follows eye-watering bill hikes to our constituents of 46.7% to clean up the mess Southern Water has made of our water system.”
The letter adds that customers “will be shocked” that while they are being asked to pay more, the Southern Water CEO is receiving extra pay awards.
A Southern Water spokesperson said: “Our CEO’s salary and benefits are decided by the Remuneration Committee, with a majority membership of independent non-executive directors, and following protocols and rules set out by Ofwat and in accordance with the law.
“Lawrence Gosden’s 2025 package includes a Long Term Incentive Plan paid by shareholders which marks improvements made during the delivery of our Turnaround Plan, such a more than 30% reduction in overall pollutions and 25% year-on-year fall in customer complaints.”
The company adds that there are no bonuses this year in accordance with the new government rules.
Southern Water was responsible for two more serious incidents than the previous year – and all its pollution incidents (category 1 to 3) increased by 32%.
Independent Water Commission report
Yesterday (July 21) the Independent Water Commission published its report setting out 88 recommendations to the UK and Welsh governments to transform the water sector.
A new integrated regulator for water, stronger consumer advocacy and 9 new regional water authorities to deliver on local priorities are among the final recommendations.
The Commission also recommends the introduction of a national social tariff to provide consistent support for low-income customers who need support to pay their bills.
It recommends compulsory water metering, changes to wholesale tariffs for industrial users and greater water reuse and rainwater harvesting schemes.
The report covers legislative reforms to better manage public health risks in water. These include a) new public health objectives in water quality legislation b) senior public health representation on regional water planning authorities and c) legislative changes to address emerging pollutants such as PFAS, micropollutants and microplastics.
Let’s ignore the elephant in the room though?
Accept the report yet, unquestioningly go along with keeping Water in private hands.
exactly Harry, this bonus is not deserved and should not be paid, however bring in the water companies back into public ownership is the only solution to them constantly dumping sewage in our seas
While the CEO takes a £600k+ bonus, my business was destroyed by a collapsed sewer Southern Water still won’t take responsibility for.
They dug outside my shop, caused or exposed a collapse, then spent over a year dodging blame — even though their own report proves it’s not a private pipe. My salon was shut for 7 months. We lost our income, our safety, our insurance.
Now they say they’re “not sure” if they own the pipe. Really?
Polly is right. This isn’t just about payouts — it’s about broken lives, broken pipes, and a company that puts spin above accountability.
The photo has either been manipulted or she’s very happy about it.
It’s not manipulated, it is from a previous article, also about Southern Water and so was suitable for this article instead of the same old ones from parliament TV
She looks like she’s posing for a snapshot on a day out to the seaside. Far too jolly for the subject matter.
Well deserved bonus,
Polly ‘it’s all about me’ Billington making out she cares .. lol ..she’s just jealous she’s not getting the £££
Don’t just hold a banner. What use will that do? Work with your colleagues to lead a proposal in the commons to renationalise the water companies. The government should simply be able to take back control on the basis of breach of contract. Your more left wing colleagues have shown what teeth they had when stopping the proposed reforms to the benefits system. Use that same power to do something useful. Nationalise!!
Louise51 – Nationalization would cost over £90 billion, according to the Environment Secretary Steve Reed.
Only if the contracts with these companies had no requirements relating to performance. Their abysmal performance should have resulted in cancellation for breach of the contractual terms.
Perhaps we could look into the salaries of those who run TDC and Kent CC for their contributions to the pollution of our countryside and general area..Years of forgotten litter,overflowing litter bins,detritus unswept for years,dog poo bins overflowing within inches of the coastline.Just been to France.Its spotless puts Thanet to shame.Oh and after 1500 miles I didnt see one pothole.
Sue the Councils as well for pollution of the countryside and general area.Litter everywhere with overflowing bins,detritus filled roads,dog poo bins overflowing inches away from the sea.
Just travelled 1500 miles in France and it was absolutely spotless.Didnt even see 1 pothole.There was more litter and potholes in my 100 yard long road.
It’s manipulated but I know some here might want to manipult her, presumably with a manipulater, which I assume is some kind of medieval siege weapon.
Nationalise,yes I agree. Asking anyone in Southern water to restrain their greed impulse, is like asking burglars not to steel.
I agree, Polly you are making a spectacle of yourself with thus daft photo opportunity.
No it’s not manipulated (read Kathy’s comment above).
I take it you didn’t read the article then, Louise?
There is already a social tariff, do they not know ow that?
Mmmm Polly probably got a free meal and some free tickets for something, for her to hold up the placard.
Before complaining about being over remunerated (pot kettle black) I think Polly she look in the mirror.
Expenses, heating paid for etc etc
I have doubts this Lab/Con government will actually fully re-nationlise Water! Can anyone actually say if any “privatised(sic” industry is better now than before? No, and it was Margaret Thatcher that sold off the nationlised indistries for a song, that we had paid for! The new owners, all pals of the Tory’s, then failed to re-invest any profits, and pocketed them instead!
I have never said this before, and if I had it needs repeating. I have serious doubts this government will re-nationlise water! There is a report it will probably be some sort of joint privatiesed public ownership deal which means we will pay for the cost which will be by a mortgage, and at the end of the loan time, some company or companies will own it! This was in an article in the I Newspaper by a former Labour Government Advisor!
Polly didn’t bother to answer my email, but then she is only interested in getting her photo taken.
Polly is only interested in getting her photo’s in the papers, she
is not interested in replying to emails.
Southern Water put the bills up which impact the poor but award this man this bonus !!! corporate greed as usual !!!
It will cost about £1.00 for the Government to buy Souther Water. About the same for all the other water companies. They are bankrupt. They owe more than they make, especially as they take so much of their income and give it to corporate shareholders and in bonuses to managers.Nobody spends good money taking ownership of bankrupt companies. You offer a pound and then take the company and it’s debts. The government can pay off the debts over time by borrowing from itself at the very low rates it imposes on itself! It’s nonsense to claim that taking these companies into public ownership would cost billions. They aren’t worth anything. The Labour government tells us this nonsense because they genuinely don’t believe in public ownership. They used to. But they don’t now. In fact , they lack all imagination about what to do at all. They can only carry on with the failed experiment in privatisation , as they lack any other ideas.