EXCLUSIVE: Ofwat to shed jobs as government cuts bite

Ofwat will be shedding staff as it seeks to cut its budget by 10 per cent in line with the government’s Comprehensive Spending Review.

The regulator has launched a voluntary exit scheme for its employees. It said that at this stage, it does not know what the headcount reduction will be, but hopes it will be met by voluntary exits. If not, redundancies could be made at a later date.

Ofwat has been told it needs to cut its budget by about 10 per cent on a like for like basis by 2015/16.

Cathryn Ross, Ofwat’s chief executive told Utility Week: “We won’t be able to make that reduction without a reduction in headcount. What exactly that percentage is, is something we are not clear on yet and will become apparent over time.” 

Ross said that Ofwat’s price review, which will decide how water companies operate for the five years from 2015, will not be affected by budgetary pressures.

“PR14 is absolutely unequivocally our top priority and we will do nothing to compromise that,” she said.

“If people working on PR14 want to be part of the voluntary exit scheme then obviously we will consider that but there is no guarantee that we will accept applications or voluntary exit.”

Ross added that job cuts were also part of its wider plans to streamline and work more efficiently.

“Even without budget pressures we would have certainly been looking at the skill mix of the organisation the shape of the organisation and the way that we work,” said Ross

“By offering voluntary schemes we are giving staff the opportunity to take control and come and have that conversation about what they want to do in the future, about the financial settlement they might get and take an informed choice at an early stage,” she added.