Thames Water faces row over £1m payment to finance chief

Thames Water, the utility company serving 16 million customers in London and the Thames Valley, has faced criticism over a £1 million payment made to its finance chief, Steve Buck. The payment, which was made last month, has been deemed "unacceptable" by the Department for Environment, Food and Rural Affairs (Defra) and has drawn criticism from campaign groups.

The environment department stated that it is unacceptable for a water company struggling with environmental failings to continue paying large bonuses to executives. Defra has banned bonuses for polluting water bosses and expects companies to adhere to the rules. The company has been on the verge of collapse for over two years and has been in talks with creditors to take formal ownership of the business.

Thames Water is one of at least eight water companies banned from paying performance-related bonuses due to continued environmental failings. The company received a £3 billion emergency debt package from creditors to keep it running while it tries to negotiate a longer-term takeover. The payment was made from this emergency funding, and while the payment does not come directly from customer bills, it is still understood to be controlled by Thames Water's remuneration committee.

Campaign groups have called for the government to step in and take control of Thames Water via a special administration regime. They argue that the company is taking advantage of its struggling position to reward executives with millions in bonuses, while frontline staff continue to work around the clock to keep the business running.