Job cuts on the cards at UU

UNITED Utilities is weighing up job cuts at its headquarters in Warrington as it anticipates a tough price review from the regulator Ofwat.

Bosses at the company briefed unions last week about the proposed cost-cutting plans, and have refused to rule out compulsory redundancies if not enough volunteers come forward.

The Unite union is predicting 250 jobs will go, but a spokesman for United Utilities said no figure had been put on the cuts, although it is keen to make the head office operation more “lean and efficient”.

The company confirmed it had started a 90-day consultation period with unions and would seek to minimise compulsory redundancies.

The spokesman said: “We’re expecting a tough price review. The regulator wants to keep water bills as low as possible. We’re looking at how we can become more lean and efficient in order to provide a better service to customers.”

Unite union regional organiser Eddie Hulse said the company had blamed falling income and inefficiencies to support the cuts.

UU, like other water companies, is in the final stages of negotiations with regulator Ofwat about how much it can raise prices for the next five years. The regulator will reveal its pricing proposals later this month.

For the last full financial year to 31 March, United Utilities reported an 11% rise in pre-tax profits to £529.8m.