Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of whether the current regulatory framework prevents performance-related remuneration being awarded to senior executives of water companies where those companies have failed to meet targets on (a) pollution incidents, (b) leakage, (c) storm overflows and (d) infrastructure investment.

The Water (Special Measures) Act introduced rules, effective from June 2025, prohibiting performance-related pay for directors of regulated water companies that fail specified standards on environmental performance, consumer matters, criminal liability or financial resilience. Regarding executive performance-related pay, companies must demonstrate a substantial link to delivery for customers and the environment. Otherwise, Ofwat can prevent customers funding payments that do not meet its expectations.