Water Firms Face Bonus Ban — Could They Just Up Their Pay?
When the government rolled out a new bonus ban on senior water‑company bosses this Friday, six utilities have been told that no more high‑rolling awards will be part of the 2024/25 financial plan. But lately there’s been chatter that the executives might simply bump up their salaries to compensate.
Steve Reed Steps In
The Environment Secretary, Steve Reed, made it clear that this idea would be “extremely foolish.” He was asked on Times Radio whether the water companies would be restrained from raising wages to sidestep the ban. Reed answered, “It would be a very bad move if they tried to do that. These firms need to repair their shaky relationship with their customers.” He added that the public is already “furious” about seeing local waterways getting polluted, while top managers keep pocketing multimillion‑pound bonuses.
During the Radio 4 Today Programme, Reed said: “I don’t think it’s right for the government or regulators to set salary limits in private‑sector businesses. Nevertheless, these companies must keep an eye on how their customers feel about their actions, and there are ways they can stay within the rules without compromising goodwill.”
Which Firms Are at Stake?
- Wessex Water
- United Utilities
- Anglian Water
- Yorkshire Water
- Thames Water
All of them have received the same message: no bonuses next year. The debate now shifts to whether they can quietly upgrade salaries without drawing criticism.
Bottom Line
For the moment, the public and the regulator’s stance is clear. If the goal is to rebuild trust, playing the salary game might feel like a slippery slope. The industry must find a balanced approach—after all, a water‑company’s reputation could spill faster than a broken pipe.
