Water Companies: Incentives

(asked on 22nd May 2025) - View Source

Question to the Department for Environment, Food and Rural Affairs:

To ask His Majesty's Government what steps they are taking to ensure that senior managers in the water industry are not awarded inappropriate bonuses.


Answered by
Baroness Hayman of Ullock Portrait
Baroness Hayman of Ullock
Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
This question was answered on 6th June 2025

For too long, water companies have discharged unacceptable levels of sewage into our rivers, lakes and seas. Water bosses taking bonuses when their companies criminally pollute our waterways is unacceptable.

As part of our Plan for Change, we’ve delivered on our promise to put water companies under special measures through our landmark Water (Special Measures) Act.

As part of the Act, Ofwat has new powers to ban the payment of bonuses if performance standards are not met. This means executives will no longer be able to take home eye-watering bonuses where companies fail to meet standards on environmental performance, financial resilience, customer outcomes or criminal liability.

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