Ban on Unfair Bonuses for Anglian Water Bosses – A Victory for Colchester’s Rivers

Unfair bonuses have been banned with immediate effect for senior bosses at Anglian Water, as part of the Labour Government’s Plan for Change, following the introduction of the landmark Water (Special Measures) Act 2025.

Pam Cox pictured with clean water campaigner Feargal Sharkey [2024]

Under the new rules, water companies like Anglian Water are prohibited from awarding bonuses to executives who preside over poor environmental and customer outcomes. This delivers on a key Labour manifesto pledge and applies retrospectively to bonuses from April 2024.

Anglian Water has paid out more than £16.9 million in bonuses and incentives over the past decade – including £1.38 million in just the last two years – despite persistent sewage discharges and environmental failures across the East of England.

This decisive action comes as Colchester residents continue to raise concerns about pollution in local rivers and coastal waters.

Last year, clean water campaigner and former Undertones frontman Feargal Sharkey visited Colchester as part of his national campaign to end sewage pollution. He joined local activists in highlighting the unacceptable state of the River Colne and surrounding waterways, calling for urgent reform and accountability.

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

Pam Cox, Labour MP for Colchester, welcomed the move, saying:

“This is a huge win for Colchester and for everyone who’s fought to protect our rivers and coastline. For too long, Anglian Water bosses have pocketed bonuses while our local environment has paid the price. From the River Colne to the beaches at Brightlingsea and Mersea, our waters have been polluted and neglected.

 “I stood with campaigners last year when Feargal Sharkey came to Colchester to shine a light on the sewage scandal. His message was clear: enough is enough. Today, Labour is delivering on that call by banning bonuses for failure and putting the environment first.

 “This is just the beginning. We’re backing tougher regulation, stronger enforcement, and a record £104 billion in investment to clean up our rivers, lakes and seas. Colchester deserves clean water – and under Labour, we’re making it happen.”

Labour’s Environment Secretary, Steve Reed, who visited Colchester, added:

“Cleaning up our rivers, lakes and seas after 14 years of shameful Conservative failure is essential to this Labour Government’s Plan for Change.

 “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 Labour is banning undeserved bonuses with immediate effect, delivering on the promise we made at the General Election.”