Water Companies: Pay
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of whether CEOs of water have enhanced their salaries through other means, such as additional payments and salary rises, in the context of her Department's ban of unfair bonuses.
Answered by Emma Hardy
On 5 November 2025, Ofwat published its 2024-25 Performance related executive pay (PRP) assessment, which confirmed more than £4 million of unfair bonuses were blocked for 2024-25.
The PRP assessment highlighted a lack of transparency around executive pay in the water sector. To address this, Ofwat has confirmed its intention to update the requirements for companies' annual regulatory reporting to require companies to publicly report in full the details of remuneration received by directors from the regulated, group and parent companies, including explanations of what the remuneration relates to. Ofwat will consult on these changes with the intention that it applies to company accounts for 2025-26.
The Government expects companies to abide by both the letter and spirit of the bonus rule.
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