Pollution Penalties: Water Companies Blocked from Bonuses

The UK government has banned Thames Water and five other companies from awarding bonuses to executives due to pollution issues. A new law prohibits bonuses for the year ending April. Thames Water faces scrutiny over multiple pollution incidents and seeks new investment to prevent collapse.

The UK government has taken a tough stance against Thames Water and five other companies, banning bonuses for executives amid pollution concerns. This measure is part of a broader effort to overhaul the troubled water industry's environmental practices.

Effective from Friday, companies such as Yorkshire Water and Anglian Water will be barred from issuing bonuses for the financial year ending in April. The decision follows years of underinvestment and pollution incidents, including major sewage spills attributed to Thames Water.

Environment Minister Steve Reed emphasized that bonuses should reflect performance and not be handed out when companies fail in critical areas like pollution control. The regulator, Ofwat, will monitor compliance and enforce penalties for violations as the government aims for long-term reform.

(With inputs from agencies.)