Ofwat Launches £25 Million Water Efficiency Lab to Drive Innovation in England and Wales

Demand for water in the UK is at record levels, and the gap between supply and demand is widening. In England alone, public water supplies could fall short by 5 billion litres per day by 2055, creating potential environmental pressures and higher costs for consumers.

To tackle this challenge, Ofwat has launched the Water Efficiency Lab, a £25 million, challenge-led competition designed to identify and scale innovations that help reduce water use across England and Wales.

For those in engineering, construction, and infrastructure, improving water efficiency is a familiar challenge, with many projects already finding ways to reduce usage and deliver more sustainable outcomes. However, for most consumers, awareness of their own water consumption remains low—research shows that nearly 94% of people significantly underestimate their daily water use. Bridging this knowledge gap is critical.

The Water Efficiency Lab is now inviting innovators from the engineering, construction, and infrastructure sectors to develop solutions that address this issue. In its first year, the competition offers £5 million to support projects that use data-driven approaches to help customers understand and reduce their water consumption.

Eligible entrants must meet four key requirements:

• Be a UK-incorporated organisation (individuals are not eligible)

• Hold a UK business bank account

• Comply with the competition’s terms and conditions

• Have no conflicts of interest that would prevent participation

  
  

Entries close on 10 March 2026. For more information, visit the Water Efficiency Lab webpage to learn how to participate and be part of this important initiative to safeguard the UK’s water future.