The Environment Agency (EA) has issued a renewed warning that England must act urgently to reduce demand and protect water resources. Its report Water resources 2024–2025: analysis of the water industry’s annual water resources performance evaluates water company activity across the 2024–25 financial year and highlights the scale of work still needed to achieve long-term water security.
The EA says current abstraction from rivers, lakes and groundwater remains unsustainable, particularly as drought conditions continue across much of the country. Despite a national target to cut per-person water use by 20% by March 2038, only about a quarter of that reduction has been achieved so far. Average daily consumption remains well above planned levels, and the regulator is calling for a rapid acceleration in the rollout of smart meters to support customer behaviour change and help pinpoint leakage.
Leakage rates, though now at a 20-year low, still account for around 19% of the treated water entering distribution networks. The EA highlights the importance of reducing losses further, maintaining drought-related consumer support programmes, and delivering new supply schemes—such as reservoirs—on schedule.
Although heavy rainfall from Storm Claudia has recently caused flooding, the EA warns that many areas of England remain in drought, with below-average reservoir stocks and the possibility of continuing strain into next year. Alongside this, the government is progressing mandatory water efficiency labelling for appliances and consulting on higher standards for new buildings.
The EA, Ofwat and Defra are sending detailed letters to companies setting out required next steps for strengthening water security, including enhanced drought planning and accelerated infrastructure investment.
Key findings of the report
- Consumption. Average per-person consumption in England has fallen slightly to 136.5 litres per day, but this remains above what water companies had planned for and continues to place unnecessary strain on the environment. The EA notes that reducing household demand remains a critical part of securing long-term water resilience.
- Meters. In 2024–2025, over 62% of households in England are billed based on how much water they use. Rollout varies widely, with South East Water at 88.6% metered coverage and Portsmouth Water at 37.8%.
- Smart meters. In total around 12% of homes have smart water meters. Anglian Water leads the sector with 47.7% of households equipped with smart meters, while six companies — SES Water, United Utilities, Wessex Water, South East Water, Southern Water and Bristol Water — currently have no customers using them.
- Leakage. Leakage has reached its lowest point in two decades but still accounts for 19% of treated water lost before reaching customers. Company performance ranges from 11.8% at Essex & Suffolk Water to 22.5% at Thames Water, reflecting both best practice and ongoing challenges in maintaining ageing infrastructure.
- Supply schemes. Delivery of new supply schemes, including reservoirs, remains essential, while abstraction has reduced slightly to 14,636 mega litres per day (million litres per day), continuing a long-term downward trend.
