Peterborough MP welcomes new law that will see bonus stripped from Anglian Water boss over serious pollution incidents

Peterborough MP Andrew Pakes has welcomed a new law that that will see Anglian Water’s Chief Executive, Mark Thurston become one of the first water bosses in England to have his bonus banned under new government powers.

The ban comes following a serious pollution incident in Peterborough last September and signals a clear move to hold water company executives directly accountable for environmental failures.

During this incident, Anglian Water’s nearby pumping station suffered a pump failure which resulted in sewage being discharged into the water at Stanground Lock and King’s Dyke for around 23 hours, killing over 900 fish.

The move is part of the government’s move to hold water company executives directly accountable for environmental failures.

The ban is part of the Water (Special Measures) Act 2025, which gives the regulator, Ofwat, the authority to stop bonuses for water company executives where firms fail to meet key environmental or financial standards, or are convicted of criminal offences. The new law applies with immediate effect to six major water companies, including Anglian Water, Southern Water, Thames Water, United Utilities, Wessex Water and Yorkshire Water.

The new rules have been backdated to cover bonuses relating to the financial year from April 2024, ensuring that executives cannot benefit from poor performance or environmental harm. Companies that meet Ofwat’s standards will still be eligible to pay bonuses.

Peterborough MP Andrew Pakes, who served on the Bill Committee for the Water (Special Measures) Act, welcomed the ban, by saying “Today’s news is the next step in making water companies accountable. The era of profiteering off the back of poor behaviour is coming to an end.

“Anglian Water is not the worst water company, but it is responsible for serious pollution incidents in our region. I was proud to help develop this legislation and am pleased to see it coming into force so quickly.

“Water companies must know they will be held to account, as we see today with the action taken against Anglian Water’s chief executive for last year’s unacceptable pollution incident near Peterborough.”

Environment Secretary Steve Reed said: “Water company bosses, like anyone else, should only get bonuses if they've performed well, certainly not if they've failed to tackle water pollution.

Undeserved bonuses will now be banned as part of the Labour Government's plan to clean up our rivers, lakes and seas for good. Promise made, promise delivered.”

In response, an Anglian Water spokesperson said: “At Anglian Water, we have a brand new CEO and CFO, and for this year (2024/25) while serious pollutions performance improved (by 36%), Anglian Water Services will not pay a bonus to either of its retiring Executive Directors, or our new CEO Mark Thurston.*

“We fully support financial reward being tightly linked to company performance and have significantly reduced all senior management and Director bonuses in numerous consecutive years as a result.

“This is a vital sector, pivotal to the nation’s growth and prosperity, and we know we need to work hard as a sector to regain trust of customers and stakeholders. We are ready to play our part, but we also need – as Sir Jon Cunliffe has identified – a reformed regulatory framework that supports this journey and new chapter of improvement and growth.

“The UK water sector needs to attract tens of thousands of new recruits over the coming years – to overcome the challenges and build the new infrastructure that future generations will rely on. It is essential we remain able to retain and attract the best talent at all levels. Our independent Remuneration Committee is concerned that the unintended consequences of blanket prohibitions risk hampering this trajectory of improvement that will support growth.”