Thames Water Retains £2.5m Bonuses Amid Debt Crisis, MPs Scrutinize

Thames Water is facing intense scrutiny over its controversial Management Retention Plan (MRP), which promised £15.7 million in bonuses to 21 senior executives despite the company's ongoing debt crisis and near-£20 billion debt pile. The company paid nearly £2.5 million in bonuses in April 2025 using funds from a £3 billion emergency loan and has paused, but not canceled, further payments amid public and political backlash. Thames Water’s chairman, Sir Adrian Montague, has stated there are no plans to claw back the bonuses already paid, and no discussions have occurred with regulators Defra or Ofwat about recovering these funds. MPs and campaigners have criticized the payments as rewarding failure, especially while the utility teeters on the brink of collapse and faces accusations of a lack of transparency regarding the bonus scheme. Ofwat expressed disappointment with Thames Water's opacity and emphasized the need for proactive disclosure during a period of heightened public scrutiny in the water sector. The leadership team, including Montague and CEO Chris Weston, has been summoned for further questioning by MPs amid concerns the company may be circumventing new regulations intended to limit bonuses in underperforming utilities.