Written questions by Hayes.

Food and Rural Affairs, what steps he is taking to (a) recover retention payments issued by Thames Water and (b) ensure this money is reinvested in customer services.

Under the Water (Special Measures) Act, the Government has given Ofwat new powers to block unjustified payments. The Government will not tolerate any company attempting to circumvent the ban on executive bonuses for poorly performing companies by introducing mechanisms such as salary increases or payments through parent companies. Ofwat’s definition of performance-related pay is clear; any payment, consideration or other benefit provided as a result of meeting targets and performance standards. Government is clear that it is important for water companies to be guided by the letter and spirit of this definition. Ofwat has been asked to assess the legality of these arrangements: should Ofwat find any rule breaches, companies will face enforcement action which can include financial penalties. Whilst Ofwat is closely monitoring the effectiveness of its rules on executive remuneration, the onus remains on companies to fully comply with both the rules and the intent behind them; namely, that executive pay should reflect company performance. The Secretary of State has written to all water companies reiterating the firm expectation companies are fully transparent over the entire remuneration package for executives. The Secretary of State has been clear that customer money must be ringfenced and used solely to improve services and protect the environment. Ofwat has confirmed that infrastructure investment funds cannot be diverted to bonuses, dividends, or salary uplifts. These safeguards are part of a wider reform agenda to restore public confidence in the sector.

Food and Rural Affairs, what steps he is taking to review (a) retention payments and (b) similar schemes used by water companies subject to a ban on bonuses.

Under the Water (Special Measures) Act, the Government has given Ofwat new powers to block unjustified payments. The Government will not tolerate any company attempting to circumvent the ban on executive bonuses for poorly performing companies by introducing mechanisms such as salary increases or payments through parent companies. Ofwat’s definition of performance-related pay is clear; any payment, consideration or other benefit provided as a result of meeting targets and performance standards. Government is clear that it is important for water companies to be guided by the letter and spirit of this definition. Ofwat has been asked to assess the legality of these arrangements: should Ofwat find any rule breaches, companies will face enforcement action which can include financial penalties. Whilst Ofwat is closely monitoring the effectiveness of its rules on executive remuneration, the onus remains on companies to fully comply with both the rules and the intent behind them; namely, that executive pay should reflect company performance. The Secretary of State has written to all water companies reiterating the firm expectation companies are fully transparent over the entire remuneration package for executives. The Secretary of State has been clear that customer money must be ringfenced and used solely to improve services and protect the environment. Ofwat has confirmed that infrastructure investment funds cannot be diverted to bonuses, dividends, or salary uplifts. These safeguards are part of a wider reform agenda to restore public confidence in the sector.

Food and Rural Affairs, what estimate he has made of the number of retention payments issued by Thames Water in each of the last three years.

Under the Water (Special Measures) Act, the Government has given Ofwat new powers to block unjustified payments. The Government will not tolerate any company attempting to circumvent the ban on executive bonuses for poorly performing companies by introducing mechanisms such as salary increases or payments through parent companies. Ofwat’s definition of performance-related pay is clear; any payment, consideration or other benefit provided as a result of meeting targets and performance standards. Government is clear that it is important for water companies to be guided by the letter and spirit of this definition. Ofwat has been asked to assess the legality of these arrangements: should Ofwat find any rule breaches, companies will face enforcement action which can include financial penalties. Whilst Ofwat is closely monitoring the effectiveness of its rules on executive remuneration, the onus remains on companies to fully comply with both the rules and the intent behind them; namely, that executive pay should reflect company performance. The Secretary of State has written to all water companies reiterating the firm expectation companies are fully transparent over the entire remuneration package for executives. The Secretary of State has been clear that customer money must be ringfenced and used solely to improve services and protect the environment. Ofwat has confirmed that infrastructure investment funds cannot be diverted to bonuses, dividends, or salary uplifts. These safeguards are part of a wider reform agenda to restore public confidence in the sector.

Food and Rural Affairs, if he will set targets for the reuse of digital devices in the extended producer responsibility regime.

We do not currently set targets for the reuse of digital devices in the waste electricals producer responsibility regime. The Circular Economy Taskforce will consider evidence for action right across the economy and evaluate which interventions are required as we develop the Circular Economy Strategy for England.

Food and Rural Affairs, pursuant to the Answer of 18 September 2024 to Question 5227 on Wood-burning Stoves, what recent estimate he has made of when his Department will complete its assessment of options to (a) reduce the impact of wood burning stoves on people’s health and (b) meet statutory targets for this pollutant.

Officials are currently evaluating a number of options to reduce emissions of air pollutants, in particular fine particulate matter, from domestic burning, which I anticipate will be completed in spring this year. The Government launched a rapid review of the Environmental Improvement Plan (EIP) to revise our plan for significantly improving the environment and deliver legally binding targets including for Air Quality and PM2.5. The Government concluded the review of the EIP at the end of last year and will publish a summary of findings in early 2025. This will be followed by publication of a revised EIP.