Government bans unfair bonuses for Yorkshire Water bosses

The move comes after the government brought in tough new legislation as part of the Plan for Change.

Under these new rules, introduced with the landmark Water (Special Measures) Act 2025, companies including Yorkshire Water are not permitted to pay bonuses to water bosses that oversee poor environmental and customer outcomes.

Yorkshire Water awarded over £12 million in bonuses and incentives over the last decade, paying £616 thousand in bonuses last year alone.

Rawmarsh and Conisbrough MP, John Healey, said: “This ban holds water bosses at Yorkshire Water to account and ensures they can no longer cash in while companies neglect customers, pollute rivers, or mismanage their finances.

“Water company bosses, just like anyone else, should only get bonuses for good performance, certainly not if they’ve failed to tackle water pollution.

“That’s why this Government is banning undeserved bonuses with immediate effect delivering on the promise we made at the General Election.”

The action delivers on a key manifesto commitment and has been backdated to apply to any bonuses relating to the financial year from April last year.

Companies that do meet Ofwat’s standards will still be eligible to pay executives bonuses – a powerful incentive for bosses at Yorkshire Water to deliver immediate environmental improvements, better customer outcomes, and improve financial resilience.