Joint Unions Thames Water Bulletin - 2025 Final Pay Offer - 17 April 2025
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Thames Water – 2025 Final Pay Offer
Dear Member,
We’ve had several constructive meetings with Thames Water in relation to this year’s pay claim. From an initial offer of 2.5%, positive and collaborative discussions have got us to a better place and a final offer which we can recommend to members.
The pay offer is 4%, which is the second highest in the Water Sector this year and above the current rates of inflation RPI 3.2%, CPI 2.6%, CPIH 3.4%. And considering the company’s financial situation we believe the offer is a good one.
Details of the Final Pay Offer
Pay
- A 4% consolidated and pensionable increase to base salaries for all eligible colleagues in grades A & B effective from 1 July 2025.
- This includes a consolidated 4% increase for colleagues who are currently ‘red circled’ i.e. above the maximum of their pay bands.
- A 4% increase to standby, call-out and out-of-hour allowances effective from 1 July 2025.
Eligibility for Pay Increase
Colleagues in grades A & B will receive the increase to their base salary with effect from 1 July 2025.
- Base salary at 30 June 2025 will be used for the calculation
- Known leavers (except retirees) at the payment date will not be eligible for the increase
- Graduates and Apprentices will not be eligible as their pay is reviewed separately
- Colleagues on Formal Pay Progression schemes will be eligible for the increase
Red Circling
The consolidated increase protection for red circled colleagues in relation to annual pay reviews has already been agreed to remain in place until the July 2026 pay review, this protection will be extended to cover the July 2027 pay review.
Pay Band Queries
Thames Water has agreed to communicate job codes / pay bands and provide a process for colleagues to ask questions or raise queries about their job code / pay band alignment. Thames will work closely with individuals and the joint trade unions to resolve outstanding concerns by March 2026.
Working Pattern Allowances and Red Circling Associated with the Allowances Role In Thames Water has agreed to aim to reach agreement on a way forward with the joint trade unions by December 2025.
Pay Progression
Thames Water has agreed to review Pay Progression by March 2026 with a view to improving the existing schemes and implementing new schemes if appropriate on a prioritised basis.
Outside of the pay offer, Thames Water has agreed to the following:
2025/26 Performance Related Pay Plan (A&B Bonus)
Implementation of the new Performance Related Pay Plan (PRPP) for the 2025/6 financial year. The PRPP aligns incentives for Grade A and B colleagues to the Company’s success by directly linking reward to achievement of the Company’s key performance measures.
- The performance period is aligned to the financial year, 1 April 2025 to 31 March 2026
- All permanent colleagues in Grade A and B are eligible to participate
- Payments are calculated using base salary at 31st March
- Any awards under the plan are made after the final company results are published, usually July
The performance measures and scheme rules will be distributed as soon as possible, likely to be in June.
Pay Band Benchmarking
In line with the agreement to ‘review pay bands annually against market data and discuss with our partnership unions as part of the annual pay review’, Thames have completed this review and are pleased to confirm that they will be uplifting the pay bands effective 1 July.
The specifics of the changes and any resulting pay increases will be communicated directly to colleagues in the coming months.
Next Steps
The individual Trade Unions will be balloting members on the company’s pay offer at the beginning of May 2025. We collectively believe that the offer is a good one and we will be recommending that members accept the offer.
On behalf of Trade Union Side
Jay Williams (UNISON) |
Gary Carter (GMB) |
Peter Storey (UNITE THE UNION) |