Thames Water has “withdrawn” plans to pay senior bosses bonuses linked to the company securing a £3bn emergency loan, the environment secretary has said.

Croydon North MP, Steve Reed has confirmed the proposals had been dropped during an Environment, Food and Rural Affairs (Efra) committee session with MPs yesterday.

The so-called retention plan would have amounted to 50% of senior bosses’ salaries, leading to them getting £1m on top of their annual salaries and regular bonuses.

The payments were linked to the struggling firm securing a rescue loan of up to £3bn to stave off collapse earlier this year.