Southern Water bosses have been handed 'massive' bonuses – with an MP saying it "beggars belief".

Chief executive Lawrence Gosden received a £183,600 bonus - as part of a £764,000 pay package - according to the company’s annual report.

Chief financial officer Stuart Ledger received a £128,000 bonus, taking his total pay to £610,000.

It comes after the utility firm proposed an increase of 73 per cent to household bills over the next five years.

But Southern Water was keen to point out that both men “declined” a bonus last year and would receive a "partial" bonus in 2024, paid for by shareholders rather than by customers.

Liz Jarvis, MP for Eastleigh, said: “While people across Eastleigh are being hit with huge water bill hikes and have endured disruption to services and sewage in our rivers, it beggars belief that the boss of Southern Water is being given a massive bonus.

“This is why Liberal Democrats are calling for Ofwat to be abolished, profits invested in infrastructure and clearing up pollution, and bonuses banned for water company bosses until they have cleaned up their act.”

READ MORE: Southampton residents face near-50 per cent hike in water bills

The proposed hike by Southern Water was the largest of those put forward by English water firms.

Last week, Ofwat rejected the plans which “plan “fell short” of minimum expectations.

However, it still provisionally allowed a bill increase from £420 to £603 - the biggest rise in the country.

A spokesperson from Southern Water said: “Having declined a bonus last year, Southern Water’s CEO and CFO will receive a partial bonus in 2024, paid by shareholders rather than from customer’s bills, after the Board’s Remuneration Committee acknowledged progress made in delivering on the company’s ambitious Turnaround Plan.

“Despite the region’s wettest year on record, the Committee highlighted significant advances in treated water quality, a reduction in overall pollution numbers, and falling customer complaints, but also recognised areas where further progress is needed.”

The Labour government has pledged to give Ofwat powers to block the payment of bonuses at poorly-performing water firms.

A final determination of the proposed hike is due at the end of the year, with increases set to take place in April.