Severn Trent announces £2.5billion investment and 1,000 jobs in the area as it admits sewage problems should have been dealt with faster

IN the face of mounting criticism of water companies over sewage pollution of seas and rivers, Coventry-based Severn Trent says it will spend more than £2.5 billion in the next two years on network improvements covering the entire Midlands.

It says it will also create 1,000 new jobs as well as increase its existing financial support for up to 50,000 customers who need it most.

At the same time, however, the company – which in the past year recorded a pre-tax profit of £509 million – increased its shareholder dividend to £260 million. And its chief executive, Liv Garfield, was remunerated to the tune of £3.9 million in 2021-22.

In response to growing public anger over sewage pollution, Severn Trent said that it – and the water industry in general – should have “acted faster” and given more attention to sewage discharge into waterways.

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The company said that, as part of its £2.5 billion investment programme on a series of projects spanning the Midlands, it would be creating thousands of jobs through its supply chain.

“This demonstrates the significant importance being placed on the region and investing millions of pounds to improve river health, secure water supplies and replace over 200 miles of new pipes to improve services for customers during the next two years,” Severn Trent said in a statement.

It added: “The 1,000 new jobs for the Midlands builds on the company’s ten-year programme to help 100,000 people out of water poverty by 2032, giving people the skills and support to help find work.

“The programme will have also provided up to 4,800 work experience placements aimed at providing opportunities for schoolchildren living in some of the most deprived areas across its region.”

The company said the Severn Trent bill remained the second lowest in the country, with people receiving their water and wastewater service for just of £1 a day, and it recognised the financial pressures customers faced – especially since 48,000 of them joined its affordability schemes in the last year. (The company has more than 8 million customers.)

It added: “By 2025, Severn Trent will support 315,000 customers a year, with some receiving a reduction of up to 90 per cent. And taking support even further, up to 50,000 of these customers will now also get help from a new Big Difference Plus scheme to receive additional debt support.”

The company said it was firmly on track to reduce leakage by 50 per cent by 2045. “Severn Trent is moving faster, in some cases 20 years ahead of targets set out by regulators, and the Get River Positive pledges have made a difference across its region over the last 12 months, including investing £100 million a year on improving infrastructure,” it said.