Labour and Conservative MPs have failed to back Liberal Democrat plans to protect customers from footing the bill for water company bailouts while yet more money is leaked to shareholders
In a House of Commons vote this week, Cameron Thomas MP and the Liberal Democrats proposed an amendment to the Water (Special Measures) Bill which would protect consumers from having to bail out bankrupt water companies.
On average, a third of household bills are spent on debt, however, this amendment was rejected by the Conservatives and Labour.
It comes after news that Severn Trent intends to increase its annual dividend payments to its shareholders amid rising consumer bills and controversy over sewage spills.
Gloucestershire residents are facing eye-watering water bill rises: Severn Trent customers are set to be hit with a rise of £185 by 2029-30, an increase of 47 per cent, the second highest increase in the country.
The water company expects to pay a 126.02p per share dividend to shareholders in the 2025/26 financial year, compared to 121.71p per share the previous year.
Meanwhile, rivers that run through the Tewkesbury constituency suffer from some of the worst levels of pollution in the country because of Severn Trent sewage spills.
The River Avon experiences 6,573 sewage spills in 2023, amounting to 74 spills per mile, which registered the River Avon as the 3rd most polluted river in England. In the same year, sewage was released into the River Severn for over 30,000 hours across 3,057 spills.
The Water (Special Measures) Bill had it third reading in the House of Commons this week and contains measures the Government claims will reduce pollution, sanction executives for mismanagement and give regulator Ofwat greater powers. However, the Government and the Tory opposition both voted against the Liberal Democrat amendment to protect costumers from water company going into administration.
Commenting, Cameron Thomas, Liberal Democrat MP for Tewkesbury, said:
“We urgently need a fairer deal that prioritises customers above Severn Trent, its executives and shareholders.
“For too long they have been able to get away with financial mismanagement knowing hard-working people will be expected to pick up the tab.
“Severn Trent’s CEO was paid £3.2 million last year and its shareholders will be given even greater payouts, whilst my residents water bills are due to rise by nearly half and our rivers are polluted with filth.
“I want to stop overseas shareholders from drawing money out of private water companies which are already struggling to stay solvent and as a Liberal Democrat I want to see them turned into Public Benefit Companies.
“I’m proud that the Liberal Democrats are taking the Government to task on these issues, and I hope the Government changes course and puts customers first after the Tories did nothing to stop the scandals of our privatised water industry.
“We have already secured a single social tariff for vulnerable customers and will continue to fight for fair bills, an end to pollution and better services for customers.”
Cameron Thomas, MP for the Tewkesbury Constituency, has used a debate on water quality to highlight the dangers that polluted waterways pose to Gloucestershire residents when their homes are repeatedly "swamped” by river water.
Today I met with Tewkesbury Friends of the Earth to take water samples from the River Avon at the Abbey Mill, Tewkesbury.
Cameron Thomas MP has responded to the Government announcing a new review of the water industry, by calling for the regulator Ofwat to be replaced.
