Water bosses will be banned from taking bonuses if they have failed to clean up Britain’s rivers in the past year.
From next month regulator Ofwat plans to use new powers to stop executives of water companies being rewarded despite poor performance on cleaning up pollution.
The ban will apply retrospectively, with water firms’ record on pollution and their management since April last year taken into account. The bonuses for that financial year would normally be given out thissummer. Ofwat said bosses who had already been paid bonuses for that period would have to give them back.
Executive directors were handed more than £9 million in performance-related pay during the 2023-2024 financial year.
Ofwat is consulting on exactly how to implement its powers on bonus bans, introduced under the Water Special Measures Act 2025.
Environment Secretary Steve Reed said: ‘Starting this year, water bosses will no longer escape accountability.’
Extending the period that would qualify for a ban to April last year means the Government is ‘forcing executives to take responsibility for past failures and sending a clear message: polluters will not profit while billpayers pay the price’.
Ofwat said: ‘We are consulting on banning bonuses and are working to implement these new rules as soon as possible.’