The Labour government has immediately banned bonuses for 10 executives across six English water companies (Thames Water, Anglian Water, Southern Water, United Utilities, Wessex Water, Yorkshire Water) under new Water (Special Measures) Act 2025 powers. This action targets companies responsible for serious sewage pollution and financial failures, following public outcry and record pollution levels.
Bonuses banned for 10 English water bosses over sewage pollution
Water industryExecutive pay and bonusesCorporate governanceSteve ReedPollutionThames WaterUnited UtilitiesEnglandUtilitiesWaterBusinessEnvironmentPoliticsUK
AI Summary
TL;DR: Key points with love ❤️The Labour government has immediately banned bonuses for 10 executives across six English water companies (Thames Water, Anglian Water, Southern Water, United Utilities, Wessex Water, Yorkshire Water) under new Water (Special Measures) Act 2025 powers. This action targets companies responsible for serious sewage pollution and financial failures, following public outcry and record pollution levels.
Trending- 1 Executives at nine main water and sewerage companies paid £112m in bonuses over 10 years.
- 2 Sewage pollution increased to a record 2,487 events last year, with £7.6m in bonuses paid.
- 3 Wessex Water received a criminal conviction for sewage leaks (last November).
- 4 Anglian Water had a serious pollution event in Peterborough (last September).
- 5 The Guardian revealed Steve Reed's plan to block Thames Water retention bonuses (last month).
- 6 Thames Water paused retention bonus payments, and Adrian Montague apologized to MPs (last month).
- 7 US private equity firm KKR pulled out of a £4bn rescue deal for Thames Water (Tuesday).
- 8 The bonus ban came into place immediately under the Water (Special Measures) Act 2025.
- 10 water company executives will not receive performance bonuses.
- Increased scrutiny and tougher enforcement against failing water companies.
- Public trust in the privatized water industry is further eroded, leading to calls for public ownership.
- Potential for companies to attempt to inflate base pay as a workaround to the bonus ban.
- Investors may be put off from the troubled water industry.
- Thames Water's future remains in doubt after KKR pulled out of a rescue deal.
What: Bonuses for 10 water company executives in England, including the CEO of Thames Water, have been banned with immediate effect due to serious sewage pollution and financial failures.
When: Immediate effect (ban), in the past 10 years (£112m in bonuses paid), last year (sewage pollution increased to record 2,487 events, £7.6m in bonuses paid), last November (Wessex Water criminal conviction), last September (Anglian Water pollution event), last month (Guardian revealed Reed's plan, Montague apologized, Thames Water fined), Tuesday (KKR pulled out).
Where: England, UK (specifically Slough, Three Rivers District, Chilterns, Sevenoaks, Reigate, Runnymede, Enfield for Thames Water pollution events, Peterborough for Anglian Water).
Why: To tackle serious sewage pollution, hold executives accountable for failing to meet key standards on environmental and financial performance, and address public concern over pollution and executive pay. The government aims to correct 'poor behaviour' that occurred under the previous government.
How: New powers under Labour’s Water (Special Measures) Act 2025 allow the regulator, Ofwat, to ban bonuses for executives where a company fails to meet key standards or is convicted of a criminal offence. The ban applies to performance rewards.