The inaugural Water Efficiency Lab (WEL 1) — a £25 million (€28.8 million) challenge-led competition aimed at scaling innovations that cut water use across England and Wales — is to be launched.
In its first year, the competition will offer £5 million (€5.75 million) in funding, with up to £1.5 million (€1.73 million) available per project. Innovators are being invited to develop new technologies, data-driven tools and solutions that help people and businesses understand their water consumption — and reduce it.
England faces a projected 5 billion-litre-per-day shortfall in public water supplies by 2055, driven by population growth, climate change and rising consumption. Cutting use is therefore essential to maintaining a resilient and sustainable water system.
Yet despite the desire to reduce consumption, most households and businesses lack the detailed data needed to understand their usage, identify waste and take effective action. Research shows 94% of people underestimate their daily water use — with more than one-fifth believing they use less than 20 litres, when actual average use is 152 litres per person per day.
The first year of WEL 1 will focus on closing this knowledge gap, giving customers actionable insights into their water use that drive behaviour change. Innovators will be tasked with creating solutions that both improve data visibility and enable people to act on it to cut consumption.
While the water sector continues efforts to reduce leaks and upgrade infrastructure, helping customers understand and manage their own usage is increasingly vital. The Water Efficiency Lab aims to deliver the innovations water companies can embed into their services to enable customers to cut overall use.
Water Minister Emma Hardy said: “This year’s prolonged dry weather demonstrates why we all need to take action to protect our water resources. With a changing climate, pressure on the
“I welcome the Water Efficiency Lab initiative, which will help people understand their water usage and give them tangible ways to reduce it.”
Chris Walters, Interim Chief Executive of Ofwat, added: “Consumers and businesses want to use water responsibly, but most lack the information they need to understand how much they use or where they can save. The Water Efficiency Lab has been created to change this and turn data into insight and action.”
The competition is open to UK-based innovators, and international innovators partnering with a UK lead entrant, across all sectors — including water companies, tech developers, universities, behavioural scientists and start-ups. Entries will be judged on potential impact, innovation, feasibility and pathway to adoption across England and Wales.
WEL 1 will open at 1pm on Tuesday 25 November and close 10 March 2026. Winners will be announced in June 2026, with funding awarded to the most promising projects driving behavioural change and measurable reductions in demand.
Full details — including entry forms, criteria, terms and support — will be published at launch at waterinnovation.challenges.org.
£25m (€28.8m) water efficiency competition set for launch
