A group of Members of Parliament (MPs) from Yorkshire has formally expressed their concerns to Vanda Murray, the chair of Yorkshire Water, regarding what they have described as “disgraceful” payments made to the company’s chief executive, Nicola Shaw. Their letter addresses the shocking revelation of £1.3 million in payments that had previously gone undisclosed. Among the MPs signing the letter are notable figures such as Rother Valley’s Jake Richards and Naz Shah, the MP for Bradford West.
The controversy stems from the fact that Yorkshire Water has defended these payments, which stem from their parent company, Kelda Holdings, a firm located offshore. While the organization insists that Nicola Shaw’s compensations were in line with her role within Kelda, the MPs demand clarity and transparency surrounding these financial arrangements. This call for accountability raises serious questions about corporate governance, particularly in a publicly critical environment where customers feel the brunt of increasing water bills and service failures.
Jake Richards pointed out the glaring inconsistency in Shaw’s public denouncement of bonuses, contrasting with her acceptance of substantial undisclosed payments. With constituents already facing a staggering 41% rise in their water bills, the perception of corporate malfeasance exacerbates public outrage. Richards’ remarks resonate with broader sentiments regarding the integrity of water companies, stating that the situation only serves to fuel public distrust, which he describes as being at an all-time low.
In July, Yorkshire Water announced a hosepipe ban across extensive areas, underscoring ongoing issues with water management and service reliability. The company, embroiled in previous scandals, had already faced fines for various infractions. These include a notable £40 million penalty in March imposed by the regulatory body Ofwat due to serious failures. More recently, they were fined over £900,000 for polluting a watercourse leading to the death of numerous fish, along with a separate incident that resulted in a £350,000 fine for sewage pollution in North Yorkshire.
The financial context for Nicola Shaw’s remuneration is further complicated by revelations that her additional pay, amounting to £1.3 million since 2023, primarily comes from work associated with “investor engagement, financial oversight, and management” at the Kelda Group. Although Yorkshire Water has clarified that this payment structure is separate from her £660,000 base salary, it is clear that the MPs believe such payments should be fully transparent to the public.
In addressing these pressing concerns, the MPs have put forth a series of questions in their communication to Vanda Murray. They are seeking answers regarding the rationale behind the £1.3 million payment in addition to Shaw’s salary, the reason for Yorkshire Water’s offshore parent company structure, and whether these payments serve as indirect substitutes for bonuses that Shaw has publicly eschewed.
The letter’s signatories include a diverse group of influential Labour MPs from Yorkshire, showcasing widespread concern regarding the management practices of Yorkshire Water and highlighting the necessity for reforms to build trust with the public. The involvement of MPs like Abtisam Mohamed from Sheffield Central, Clive Betts from Sheffield South East, and numerous others amplifies the demand for greater accountability within the water sector.
As public confidence in water companies continues to plummet, it is evident that financial transparency must be addressed urgently. Yorkshire Water has yet to comment further on the MPs’ queries, but the general sentiment appears to be one of increased scrutiny as criticism mounts. The ongoing debate highlights a significant need for reforms in the utility sector to address not only financial appropriateness but also the overall performance and service standards expected by the public.
