Share of £5 Million for Water Efficiency Innovation – Water Efficiency Lab 2

The Water Efficiency Lab (WEL) is an Ofwat innovation competition supporting new technologies, processes and approaches that can reduce water demand across England and Wales. The second competition, WEL2, opened on 3 August 2026 and focuses specifically on reducing customer-side leakage. Ofwat is making up to £5 million available in this round.

Here’s what you can expect:

• A share of up to £5 million in funding

• Funding for innovative solutions tackling customer-side water leakage

• Support for new technologies, products, processes and approaches

• Projects can address water use across both households and businesses

• Opportunity to develop and test solutions that could ultimately be adopted across the water sector

• WEL2 forms part of the wider £25 million Water Efficiency Lab, which will run annual competitions through to 2030.

Who can apply?

• UK innovators from a wide range of sectors

• Technology and software businesses

• Startups and SMEs

• Universities and research organisations

• Water-sector organisations

• Other innovators developing solutions relevant to water efficiency

• Projects should ultimately contribute to improved water efficiency in England and Wales.

Funding amount: Up to £5 million is available across WEL2. The wider Water Efficiency Lab will award £25 million over five years, with up to £5 million available through each annual competition.

Important: This is a genuine funding competition, so I'd definitely keep this one for the grants/funding section of the forum. WEL1 awarded seven projects a share of £5.2 million in June 2026.