What is the Water Efficiency Lab?
The water sector in England and Wales is at risk of falling short of its long-term goals for water efficiency, with an estimated deficit of nearly 5 billion litres per day in England by 2055.
The Water Efficiency Lab (WEL) is a challenge-led competition to attract innovative solutions to specific water efficiency challenges and unlock progress on water efficient technology, processes and approaches.
A total of £25 million will be available through annual WEL competitions between 2025-30. Each annual competition will explore a different theme, to be confirmed, with the theme for the second competition being ‘Reducing customer-side leakage’.
The WEL is part of Ofwat’s new £100 million Water Efficiency Fund (WEF), which has been established to drive a transformative, sustained, and measurable reduction in water demand across England and Wales.

Why reducing customer-side leakage?
While water companies in England and Wales have cut leakage on their networks by 40% since the mid-1990s, it is estimated that around 10% of homes and 25% of businesses could have internal leaks. This includes leaks on customers’ pipework, dripping taps or leaking toilets.
The ability to find and fix leaks is essential to achieving water resilience and secure water supplies for all customers, but there are also tangible benefits for the individual customer. By proactively identifying and fixing leaks, customers are able to reduce their water bills and minimise the risk of costly property damage and unexpected repair bills, also providing greater peace of mind.
Key information
The theme for the second WEL competition (WEL 2) is Reducing customer-side leakage.
WEL 2 opens for entries on 3 August 2026 at 1 pm (BST) and closes on 20 October 2026 at 1 pm (BST).
The total funding available for WEL 2 is up to £5 million. Individual entries will be able to request between £150,000 and £1.5 million.
WEL 2 winners will be announced in April 2027.
Competition timeline

FIND OUT MORE ABOUT WEL 2 AND GET INVOLVED
Who’s involved


