A water company boss was handed more than £1.3 million in 'extra' pay from an offshore firm, despite its abysmal record on pollution and increasing household bills.

Chief executive Nicola Shaw pocketed two payments of £660,000 in the last two years from Yorkshire Water's parent company Kelda Holdings, in addition to her salary with the beleaguered utilities firm.

Yorkshire Water was allowed to raise average annual household bills by 41 per cent last year, and this summer introduced a hosepipe ban for its 5.5 million customers.

It was ordered to pay £40 million in the spring to address its 'serious failures' over wastewater and sewage, and was also separately fined nearly £1 million last month for polluting a watercourse with chlorine, causing the death of hundreds of fish.

Yorkshire Water is one of the six water companies currently banned from paying bonuses under Government action designed to prevent bosses who 'oversee poor environmental and customer outcomes' from receiving extra money.