Six water firms banned from bonuses but could increase their salaries instead

Six water firms have been banned from paying senior bosses bonuses that came into force on Friday, however it has been suggested that in response they could raise their salaries.

The Environment Secretary Steve Reed has waded in and said it would be “extremely foolish” if they were to raise their salaries in response to the bonus ban.

Wessex Water, United Utilities, Anglian Water, Yorkshire Water and of course Thames Water have been told there will be no bonuses in the 2024/25 financial year.

Reed was asked if he will ensure the water firms will not raise salaries to get around the bonus ban, he told Times Radio, “I think they would be extremely foolish to do anything of the sort that you’re describing, because (…) these companies need to rebuild their broken relationship with their customers.

“Their customers need to have confidence in what they’re doing, their customers are furious at the fact that they’re seeing local waterways being polluted, but bosses taking multimillion-pound bonuses.”

Reed told Radio 4’s Today programme, ““I don’t think it’s right that government or regulators should be capping the salaries in private sector businesses.

“But those businesses need to have an eye on how their customers are feeling about what they are doing, and there are steps that you can take that are appropriate within regulation.”