Labour bans bonuses for 10 water bosses amid worsening pollution

Government uses new powers to target top executives at six firms

- Sandra Laville

Bonuses for 10 water company executives in England, including the boss of Thames Water, will be banned with immediate effect over serious sewage pollution, as part of new powers brought in by the Labour government.

The top executives of six water companies who have overseen the most serious pollution events will not receive performance rewards this year, the environment secretary, Steve Reed, announced.

The companies - Thames Water, Anglian Water, Southern Water, United Utilities, Wessex Water and Yorkshire Water - are responsible for the most serious category of sewage pollution into rivers and seas all of which are, or have been, under criminal investigation by the Environment Agency.

Under powers in Labour's Water (Special Measures) Act 2025, Ofwat is now able to ban bonuses for water executives where a company fails to meet key standards on environmental and financial performance or is convicted of a criminal offence.

In the past 10 years executives at the nine main water and sewerage companies have been paid £112m in bonuses. Last year sewage pollution rose to a record 2,487 events.

Reed said: "Water company bosses, like anyone else, should only get bonuses if they've performed well, certainly not if they've failed to tackle water pollution. Undeserved bonuses will now be banned as part of the government's plan to clean up our rivers, lakes and seas for good."

Bonuses have been banned for Thames Water's chief executive, Chris Weston, and Steve Buck, its chief financial officer. Southern Water, United Utilities and Yorkshire Water have also had bonuses banned for their chief executives and chief financial officers.