Skip to content
Sunday 9 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,901.09
+0.31%
DAX
26,319.45
+0.69%
CAC 40
8,714.93
+0.17%
STOXX 50
6,523.86
+0.33%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Thursday 05 June 2025 10:30 pm  |  Updated:  Friday 06 June 2025 9:01 am

Thames Water: Water boss bonus ban comes into force

By: Guy Taylor

Transport Reporter

Add as a preferred source on Google
Charlie Maynard, MP for Witney, was among a group which included the utility's secondary creditors, who opposed a £3bn emergency loan agreement earlier this year.
Charlie Maynard, MP for Witney, was among a group which included the utility's secondary creditors, who opposed a £3bn emergency loan agreement earlier this year.

Six water companies including crisis-hit Thames Water will be banned from paying bonuses to senior bosses.

New measures in the Water (Special Measures) Act come into force on Friday, prohibiting utility firms that oversee “poor environmental and customer outcomes” from offering bonuses to senior bosses.

The companies impacted are Thames Water, Yorkshire Water, Anglian Water, Wessex Water, United Utilities, Southern Water. If any of them pay bonuses while under the ban, the water regulator Ofwat has the power to step in and take the back.

More than £112m in bonuses and incentives have been awarded by UK water firms over the last decade. Some £7.6m was awarded last year alone.

“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,” Steve Reed, environment secretray, said.

“Undeserved bonuses will now be banned as part of the government’s plan to clean up our rivers, lakes and seas for good.”

Thames Water on the brink

It comes just days after Thames Water, the UK’s biggest water supplier, was plunged into a face crisis after KKR abandoned an attempted rescue bid.

Read more

Thames Water creditors expect Burnham talks despite legal contigency plans

Burnham cityscape at sunset with historic buildings and bustling streets, highlighting the vibrant urban landscape

The utility has amassed debts of nearly £20bn while failing to invest adequately in its infrastructure network, resulting in a huge increase in sewage leaks.

Thames came under fire earlier this year for carving out hefty bonuses for top executives from a £3bn emergency loan provided by a group of senior creditors. It was hit by a record fine from Ofwat last week over dividend payments and issues at its wastewater operations.

A Southern Water spokesperson said: “We note the Government’s announcement and await full details of how this will impact our existing approach to performance-related reward.

“This is already closely tied to the delivery of improvements in customer satisfaction and environmental performance.

“Any bonuses are paid by shareholders, not customers, and are overseen by an independent committee.”

WaterUK, the representative body for the sector, has been approached for comment.

Read more

A pragmatic plan for Thames Water

Thames Water infrastructure with pipes and maintenance workers, highlighting water management efforts in London

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business

People & Organisations

  • DEFRA
  • Ofwat
  • Southern Water
  • Thames Water
  • United Utilities
  • Yorkshire Water

Trending Articles

  • Why the Loire Valley is about so much more than fairytale castles

  • Why HMRC is huge Premier League transfer window tax headache

  • Thames Water faces fresh threat to survival after pensions regulation breach

  • Back to basics: Sainsbury’s gradual retreat from the British high street

  • Thunder Call set to Strike in Shergar Cup Sprint

More from Morning Wire

  • Thames Water creditors expect Burnham talks despite legal contigency plans

    Politics
    Burnham cityscape at sunset with historic buildings and bustling streets, highlighting the vibrant urban landscape
  • A pragmatic plan for Thames Water

    Opinion
    Thames Water infrastructure with pipes and maintenance workers, highlighting water management efforts in London
  • Burnham risks £4bn bill in Thames Water special administration

    Politics
    Thames Water infrastructure with pipes and maintenance workers, highlighting water management efforts in London
  • Thames Water creditors open door to public control under Burnham

    Politics
    Thames Water infrastructure with pipes and valves, highlighting water management in urban areas amidst ongoing utility dis...
  • Thames Water in the dark as Burnham mulls embattled utility’s future

    Politics
    Thames Water creditors have made a last-ditch offer for a rescue deal.
  • Thames Water to run out of money by end of the year

    Water
    Thames Water creditors have made a last-ditch offer for a rescue deal.
  • Thames Water faces fresh threat to survival after pensions regulation breach

    Water
    Thames Water infrastructure with pipes and maintenance workers, highlighting water management efforts in London
  • Thames Water creditors offer government ‘golden share’ to fend off nationalisation

    Water
    Thames Water infrastructure with pipes and maintenance workers, highlighting water management efforts in London
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook