The second Water Efficiency Lab competition (‘WEL 2’) launched today. Established by Ofwat, the Water Efficiency Lab is an annual £25 million challengeled competition – with £5 million available each year – bringing together the best innovators from the UK and around the world to unlock innovation in water-saving technologies, insights and processes, for the benefit of customers in England and Wales.
Part of the wider £100 million Water Efficiency Fund, the Water Efficiency Lab will play a vital role in driving a sustained reduction in water demand across England and Wales, helping meet long-term goals for a more resilient and sustainable water system.
The need to reduce our water use has never been greater – to help solve this, the Water Efficiency Lab will fund the most promising solutions for reducing demand in households and businesses. Currently, between 1-1.5 billion litres of water is lost to leaks in our homes and businesses every day – costing bill payers up to £1.6 billion a year.
The second £5 million competition will focus on innovations that address reducing customer-side leakage. This is any leak from water pipes or fittings that the customer is responsible for, including internal plumbing (toilets, taps, valves) and external supply pipes within property boundaries. By proactively finding and fixing leaks, customers can reduce their water bills and minimise the risk of expensive property damage and repair bills. WEL 2 is seeking innovations to:
• Prevent leaks through better materials, accessible fixtures or retrofit of durable components
• Predict where and when a leak is likely to occur, for example through data or models
• Pinpoint the exact location of a suspected or confirmed leak
• Enable low-intervention, low-disruption or low-cost repairs, or simplify the repair journey.
Entrants will be able to request between £150,000 and £1.5 million in funding to develop their projects.
Entries are open from 3 August to 20 October 2026.
Individual entries can request between £150,000 and £1.5 million, with the competition seeking solutions that prevent, predict, pinpoint or repair leaks within household and non-household properties in England and Wales. More information can be found on the competition website.
WEL 2 is open to innovators across sectors, and entries from consortiums of partners. More information about the competition, including the entry form, assessment criteria and terms and conditions can be found on the Fund’s website.
Anyone who wants to learn more about WEL 2 can sign up for the Launch Webinar at 12.00 pm (BST) on Wednesday 12 August 2026.