To ask the Secretary of State for Environment, Food and Rural Affairs, if he will take legislative steps to suspend dividend payments to shareholders of water companies found to be in breach of restrictions on the release of sewerage into waterways.

We are clear with Ofwat that increases to customer bills must not flow through to company profits, dividends or to executive bonuses where performance is poor.

Using new powers granted to Ofwat by this Government under the Environment Act 2021, Ofwat introduced new powers in May 2023 to ensure dividends are linked to environmental performance and cannot be paid where it would risk the financial resilience of the company.

Government and regulators will continue to work together to hold water companies to account on poor performance and drive improvements that benefit customers and the environment.