New competition aims to support development of water saving innovations across the UK
Ofwat has launched a new £25m innovation challenge designed to support the development of new technologies that can reduce water use and enhance water efficiency.
Dubbed the Water Efficiency Lab, the new competition will offer £5m in total funding and up to £1.5m for individual projects in its first year, and is now inviting innovators to pitch new technologies, data-driven tools, and solutions that enable people and businesses to understand their water use and take steps to reduce it.
The competition opens today and is inviting submissions from UK-based innovators, and international innovators that partner with a UK-based lead entrant. The entry period runs until 10th March, 2026 with the winners then set to be announced in June next year.
Entries will be assessed based on their potential impact to deliver water consumption reduction, the level of innovation demonstrated by the solution, its feasibility, and its pathway to adoption and implementation across England and Wales, Ofwat said.
The regulator signalled the first year of the competition would focus on tackling the knowledge gap that sees 94 per cent of people underestimate the amount of water they use per day.
Potential solutions that could secure funding include smart data platforms that provide real-time behavioural nudges and incentives; fixture-level monitoring systems that track the usage of specific appliances; and combined leak detection and consumption systems that provide behavioural feedback.
"This year's prolonged dry weather demonstrates why we all need to take action to protect our water resources, as with a changing climate it is likely we will see pressure on the system continue to grow," said Water Minister Emma Hardy. "Saving water benefits everyone, reducing bills whilst leaving more water in the environment.
"While water companies must go further and faster to fix leaks, this government is taking decisive action, including developing nine new reservoirs to help secure long-term water resilience.
"I welcome the Water Efficiency Lab initiative which will not only help people understand their water usage but provide them with tangible ways to reduce it."
Chris Walters, interim chief executive of Ofwat, said the competition would aim to deliver innovations that can support the consumers and businesses who "want to use water responsibly and reduce its use where possible, but right now most don't have the information they need to understand how much they use or where they can save".
"Small changes across millions of people and businesses can make a big difference - helping cut usage now, while protecting the environment, reduces the risk of shortages and creates a more resilient and sustainable water system for the future," he added.
The launch comes just days after the Environment Agency warned many parts of England continue to face drought conditions, prompting calls for households and businesses to embrace efforts to save water wherever possible.
