Thames Water Defers £2.46m Retention Payments Amid Rescue Efforts and Political Scrutiny
Thames Water has deferred about £2.46 million of retention payments to 21 senior managers, delaying payouts that were due this month. The decision to postpone the payments was made by the remuneration committee following recent board deliberations and has been communicated to both the government and Ofwat this week.
Under the retention scheme, a larger award of roughly £13.5 million remains scheduled for disbursement in 2026. This deferral comes amid increased political scrutiny and ongoing efforts to finalise a multibillion-pound rescue plan. Creditors are injecting around £5 billion with associated debt write-offs in exchange for regulatory leniency. Without reaching an agreement, Thames Water faces potential nationalisation under the Special Administration Regime, a scenario for which government contingency plans have been considered.
Separately, Ofwat has banned bonuses for CEO Chris Weston under new rules for failing to meet environmental, financial resilience, or consumer standards; however, Weston is not among the 21 senior managers eligible for the retention payout. The rescue process is expected to continue into next year as Ofwat reviews the deal with creditors. Opposition MP Alistair Carmichael criticized the bonuses and has pressed for a decision by December 1 on whether the money would ultimately be awarded.
