Image description: A hand holding a glass underneath a tap of running water. Photo by Swanky Fella on Unsplash

A new £25 million challenge-led competition has been launched by Ofwat to drive innovations in water efficiency across England and Wales. The Water Efficiency Lab‘s inaugural round offers £5 million in funding, with grants up to £1.5 million available for individual projects that help customers reduce consumption.

The competition targets a critical gap: England faces a projected 5 billion-litre daily shortfall in public water supplies by 2055, yet research shows 94% of people underestimate their water usage – over a fifth believe they use less than 20 litres daily when average consumption is 152 litres per person.

Addressing the Data Gap

The first competition round focuses on providing customers with actionable insights into their water use. Innovators are invited to develop technologies and data-driven tools that not only reveal consumption patterns but also enable behaviour change.

Priority areas include customer-facing smart platforms offering real-time behavioural prompts and incentives, fixture-level monitoring systems tracking individual appliance usage, and combined leak detection systems with consumption feedback. Solutions for properties unable to accommodate water meters are particularly welcomed to ensure broad accessibility.

Who Can Apply

The competition is open to UK-based innovators and international teams partnering with UK lead organisations. Eligible entrants span water companies, tech developers, universities, behavioural science specialists and start-ups. Projects will be evaluated on potential consumption reduction impact, innovation level, feasibility and scalability across England and Wales.

Applications open at 1pm on 25 November 2025 and close 10 March 2026. Winners will be announced in June 2026, with funding directed toward projects demonstrating the strongest potential for widespread adoption and measurable demand reduction.

The initiative recognises that while water companies continue investing in leak reduction and infrastructure, empowering customers to understand and act on their usage is equally essential for long-term supply resilience.

Full details, entry forms and assessment criteria are available at waterinnovation.challenges.org.