Labour bans annual bonuses for six water company chiefs

Six water companies have been banned from paying bonuses to senior bosses, under new rules that come into force today.

- CAITLIN DOHERTY

Thames Water, Yorkshire Water, Anglian Water, Wessex Water, United Utilities and Southern Water have been told that they cannot issue bonuses for the financial year 2024-25, which concluded in April.

They have all been banned under new rules which prevent bonuses from being paid if a water company does not meet environmental or consumer standards, does not meet financial resilience requirements, or is convicted of a criminal offence.

The six companies are not under an indefinite ban, and those firms may be able to offer rewards for the 2025-26 year, provided they stick within the Ofwat rules, under the Water (Special Measures) Act which came into force today. If a company pays a bonus while it is under a ban, the water regulator Ofwat has the power to get the money back.

According to the Department for Environment, Food and Rural Affairs, more than £112m in bonuses and incentives have been handed out by water firms in the last 10 years.