England could face a public water supply shortfall of 5 billion litres per day by 2055, alongside a further 1 billion litre deficit for the wider economy, according to the Environment Agency.
Driven by climate change, population growth, and increasing industrial demand, the predicted deficit equals one-third of England’s current water consumption — equivalent to filling 4.5 Wembley Stadiums every day.
“The nation’s water resources are under huge and steadily increasing pressure,” said Environment Agency Chair Alan Lovell. “This deficit threatens not only the water from your tap but also economic growth and food production. Taking water unsustainably from the environment will have a disastrous impact on our rivers and wildlife.”
Published today, the Environment Agency’s National Framework for Water Resources outlines that 60% of the projected deficit must be addressed by managing demand and dramatically cutting leaks. The remaining 40% will require boosting supply through new reservoirs, desalination plants, water transfer schemes, and water recycling projects.
To meet these targets, the government has secured £104 billion in private sector investment over the next five years, including £8 billion dedicated to increasing water supply and improving demand management.
Further recommendations and actions include:
- Leakage reduction: The EA, working with financial regulator Ofwat, will oversee water company pledges to reduce leakage by 17% within five years, and by 50% by 2050.
- Smart meters: A vital rollout of 10 million additional smart meters will help consumers monitor usage and identify wastage. Currently, metered households use 122 litres per person daily, compared to 171 litres without a meter.
- Efficiency labelling: The EA is collaborating with the Government on mandatory efficiency labelling for household appliances such as dishwashers, toilets, and showers to drive water-saving behaviours.
- Infrastructure expansion: Plans include the construction of new large-scale projects, including nine desalination schemes, ten reservoirs, and seven water recycling projects by 2050.
Ofwat Chief Executive David Black highlighted the sector’s commitment: “Boosting supply through building critical water infrastructure is essential to safeguard supplies of drinking water. The way is now clear for the water industry to build on the success of the recently opened £5 billion Thames Tideway project.”
With emerging industries like data centres and hydrogen production requiring vast water resources, the EA is urging businesses to explore greater use of non-potable water. The report also emphasizes the need for more sustainable abstraction practices to protect sensitive ecosystems such as chalk streams.
