This page was reviewed and updated on 30/06/25.
The Environment Agency (EA) has warned that England’s public water supply could see severe shortages by 2055 without urgent action. Failure to futureproof water resources could lead to a daily deficit of 5 billion litres, according to analysis from its new National Framework for Water Resources.
Key contributors to this shortage include climate change, population growth, and environmental pressure that are affecting daily consumption rates. Other emerging industries also have a key role to play, such as data centres and hydrogen production, which are very water-intensive in nature.
The EA expects 60% of this deficit to be addressed by water companies managing demand and dramatically reducing leaks. The remaining 40% would come from boosting supply, including the building of new reservoirs and water transfer schemes.
Released once every five years, the National Framework for Water Resources report outlines action steps for water companies, regulators, businesses, and the public to take to manage future water consumption.
What recommendations does the report make?
- Leakage: Ofwat and the EA aim to cut water leakage by 17% by 2030 and 50% by 2050.
- Smart meters: Ten million more smart meters will be rolled out to help track use and reduce waste.
- Efficiency labelling: The EA is supporting a mandatory efficiency labelling scheme for appliances like toilets, showers, and dishwashers.
- Infrastructure: Plans include 9 desalination plants, 10 reservoirs, and 7 water recycling schemes by 2050.
Of the water deficit, Alan Lovell, Environment Agency Chair, said, “We need to tackle these challenges head-on and strengthen work on co-ordinated action to preserve this precious resource and our current way of life.”
How can businesses future-proof their water consumption?
Water is a vital part of running a business, from utilities located on site through to manufacturing products and goods. On average, over 3 million litres of water are leaked each day in England and Wales. This equates to 1,202 Olympic swimming pools per day, which can lead to massive costs over time.
Businesses can improve their water efficiency by checking for leaks, installing water-efficient fixtures, and reusing greywater where possible. They can also review operations to identify areas of high-water use, switch to low-water processes or equipment, and train staff to use water responsibly. Regular monitoring helps track progress and spot further savings.
Taking early action not only reduces operational costs but also helps future-proof your business against rising water prices, supply constraints and sustainability demands.
