Labour plans for nationalising the UK water industry could result in pension savers losing “thousands of pounds”, according to Water UK chief executive, Michael Roberts.

A leaked document, first seen by the Sunday Times, reportedly detailed that a future Labour government would offer shareholders £20bn for the nationalisation programme, £24bn less than the industry’s current market value.

A Labour spokesperson said that Labour wanted to “fix this broken system” by nationalising the industry, “saving households £100 per year on their bills”.

However, Water UK claimed that Labour’s financial calculations don’t “stack up”.

Roberts added: “It would be an absolutely devastating blow for millions of pensioners if the water industry was subject to a smash and grab raid by a future government paying well below market value for it.

“More than five million pensioners have funds invested in the water industry, including very many public sector workers. They would lose thousands of pounds each under these leaked plans.”

In a previous document that set out its plans for the water industry, Labour promised that “pensions would be safeguarded or improved, to provide dignity and security in retirement”.

Speaking on BBC programme The Andrew Marr Show, Shadow Chancellor, John McDonnell, said that the money to pay the shareholders “will be borrowed”.

He continued: “Water is a successful company in terms of income it raises. The income, that we will manage more effectively, will cover the borrowing, so there will be no net cost.”

However, Roberts disagreed, saying: “As well as hurting pensioners it would land taxpayers with a multi-billion pound bill, both for the purchase of the industry and the extra £100bn that needs to be invested in the sector over the next decade.”

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