Research and analysis

Water resources 2024 to 2025: analysis of the water industry’s annual water resources performance

Published 18 November 2025

Applies to England

Foreword

The widespread drought during 2025 underscores the urgent need for action to secure our water resources. England needs at least 100% of average rainfall this winter to largely recover from drought by the end of March next year. Without sustained and widespread precipitation, drought conditions will likely persist into 2026. The message is clear: we can no longer continue to take water for granted.

This report reviews water company water resources performance during the 2024 to 2025 financial year – before the impacts of dry weather and drought took hold. It is a timely opportunity to assess the actions being taken by the water industry to secure our nation’s water resources. This tracking is essential to understand emerging risks and respond effectively.  

Despite some progress in reducing leakage and managing demand, both remain unacceptably high and exceed national forecasts - despite the wetter conditions during the 2024 to 2025 reporting year. Elevated water demand is placing additional pressure on the environment, with more water being abstracted than expected. Around 19% of water entering distribution is still being lost to leakage before it reaches properties. Meanwhile, average household water consumption remains over 136 litres per person per day. Water companies have rightly stepped up their demand management during the 2025 drought - with some repairing leaks every 26 minutes, accelerating smart meter rollouts, and launching water-saving campaigns. This level of action needs to be sustained year-round.

The period from 2025 to 2030 is critical. We are dependent upon decisive action to secure water supplies for growth, protect the environment and build resilience to climate change and drought. Water security underpins the nation’s economy, our food and energy security, our ability to meet the nation’s housing needs and the health of our environment. Achieving the necessary water demand reductions will require a concerted effort from the water industry, government and wider society. Next year’s report will reflect the impacts of the 2025 to 2026 drought on water demand, a key test of the collective response to the challenges we are facing.

We are seeing more frequent extreme weather events, with new temperature and rainfall records set almost annually. These trends are placing increasing strain on our water resilience, and we must act with urgency, assuming this will continue as climate change impacts intensify.

Despite these pressures, there are reasons for optimism. We welcome water companies’ enhanced action on leakage and demand reduction during the current drought, but we shouldn’t need to wait for dry weather to act. We can ensure water security, provided the water industry focuses on delivering new water supplies, rolling out smart water meters and reducing water demand. The water industry is investing more than ever in new supply infrastructure (including 9 new reservoirs), smart metering and leakage reduction. The national rollout of smart water meters across England will empower households and businesses to use water more efficiently. This will come hand in hand with key government policies, including the mandatory water efficiency label and enhanced water efficiency standards in building regulations, currently under consultation.

We expect water companies to maintain the intensity of their drought response year-round and learn from past challenges in delivering their water resources management plans. Success will depend on building on what has worked, addressing delivery barriers and prioritising both supply and demand schemes.

Helen Wakeham, Director of Water

Executive summary

Ensuring a reliable water supply is a fundamental duty of water companies. This requires effective planning to meet customer demand while protecting and enhancing the environment. water resources management plans (WRMPs) are central to this process, and their effective implementation is essential.

This report summarises key water demand and supply metrics across water companies in England for the period April 2024 to March 2025. This is immediately before widespread dry weather and drought impacts during 2025. This will be reflected in the water industry’s 2025 to 2026 annual review data and our report next year.

Annual reviews track progress against WRMP forecasts, supporting transparency and continuous improvement. Through this process we are holding all water companies to account for delivery – both water and sewerage companies and water only companies.

Performance is assessed against 2024 water resources management plans (WRMP24) where published, or 2019 water resources management plans (WRMP19) where plans are pending. As the final year of the WRMP19, it also allows us to conclude where companies have underdelivered against WRMP19 commitments. Escalation of WRMP non-delivery could include investigations and enforcement by the relevant regulators.

This report highlights priority areas of focus for the water industry to ensure companies meet the starting point of their new plans and can achieve effective delivery. The report sits alongside the full annual review data published on data.gov.uk. 

Our key findings

• Average daily water use per person, known as per capita consumption (PCC) in England, was 136.5 litres in 2024 to 2025. This is a slight decrease from the previous year and reflective of continued post-COVID-19 pandemic recovery. When adjusted for dry-year conditions, this rises to 140.3 litres per person per day (l/p/d), which is far above the starting points set out in water companies’ WRMPs. Using water efficiently is especially critical whilst parts of England experience drought, affecting public supply, other water users and the natural environment.
• Around 12% of households in England are now equipped with smart water meters, using advanced metering infrastructure (AMI) technology. Most of these households are concentrated in areas served by Thames Water, Anglian Water, Severn Trent Water, and Essex and Suffolk Water. Smart water meters are a critical tool for improving water efficiency and reducing PCC across households. We expect a substantial shift in activity during 2025 to 2026 to increase smart water meter installations across England and help empower customers to be more water efficient.
• There has been a national reduction in water leakage but performance varies across the industry, with most companies still exceeding their WRMP forecasts. Currently, nearly 19% of water supplied in England is lost through leakage, which remains unacceptably high. The water industry’s 2050 commitment to halve leakage would reduce the overall rate of leakage to around 13% by 2050.
• Timely delivery of water supply schemes is essential for growth and protecting the environment. Despite most supply schemes being scheduled for later this decade or during the 2030s, there are growing risks of delays that could undermine water supply resilience. We expect water companies to act to mitigate delivery risks.
• Water companies supplied more water in 2024 to 2025 than would typically be expected under the average weather conditions experienced. This excess puts avoidable pressure on the environment and highlights the need for more effective demand management across the sector, and the delivery of leakage and PCC targets.
• Building resilience is more important as the risk of drought in England becomes more real. Achieving greater water efficiency must be a national priority, requiring coordinated efforts from government, water companies and consumers. Efficient water use during drought conditions is not only critical for maintaining supply but also for protecting environmental sustainability.

What water companies should do next 

Early planning for the next price review period is essential to ensuring the successful delivery of updated WRMP24s.

As outlined in our Summary of the latest WRMPs, many large supply options have been selected. Water companies should be preparing for this significant shift in the delivery of new supply infrastructure. Several schemes are progressing through the Regulators Alliance for Progressing Infrastructure Development (RAPID) gated process, as detailed on the Ofwat website.

While progress is being made in some areas, a stronger and sustained focus on reducing leakage and PCC is essential throughout 2025 to 2026 and over the next 5 years. The industry must closely monitor performance to ensure targets are met.

Water companies should also be progressing their smart water metering programme, ensuring they have robust data infrastructure in place to support customers from meter installation onwards. Demand reduction remains critical to securing long-term water supplies, protecting the environment and enabling necessary licence reductions.

We recommend that the water industry:

• strengthen efforts to reduce water consumption – by promoting water efficiency across households and businesses, especially during drought conditions
• accelerate its smart water meter rollout in 2025 to 2026 – ensuring robust data systems and processes are in place to support customer engagement and enable water efficiency
• reduce leakage further and improve infrastructure delivery – by increasing efforts to meet WRMP forecasts and mitigating emerging scheme risks

1. Introduction

1.1 Background

We are facing a pivotal moment in water resources. Earlier in 2025, the Environment Agency published our updated National Framework for Water Resources. This set out England’s long-term water needs and solutions across different sectors. Water is central to enabling economic growth, food and energy security, and data and artificial intelligence (AI) global leadership.

The water industry’s actions from 2025 through to 2030 will be central in securing a sustainable and resilient water supply across England, central to many of these wider priorities. This will require significant investment in new infrastructure alongside efforts to reduce leakage and improve water efficiency, particularly through the rollout of smart meters. These initiatives are included in water companies’ statutory WRMPs and reflected in their business plans.

Most companies have published and are now working to their final WRMP24s. As the sector transitions from WRMP19 to WRMP24, a greater focus on leakage reduction and water efficiency will be essential to ensure security of supplies and protect the environment going forward. This is associated with a step change in investment in water resources demand and supply schemes in the final water company business plans.

Water companies are legally required to report annually on progress against their WRMPs. This report reviews sector-wide performance for the 2024 to 2025 reporting year. It focuses on the early implementation of WRMP24 and identifies any further actions needed in 2025 to 2026 to meet future targets.

Southern Water and South West Water have not yet finalised their WRMP24 plans. This assessment uses the latest revised draft WRMP24 forecasts, which remain subject to change.

This report presents our assessment of annual review submissions, including both national and company-level data. It compares individual performance against national averages and company-specific WRMP forecasts. Even where a company exceeds national averages, underperformance against its own targets may still prompt regulatory action. Joint regulatory letters addressing such issues will be published on Ofwat’s website towards the end of the 2025 calendar year.

1.2 A year in water resources

Most of England experienced average to above-average rainfall during April 2024 to March 2025, with particularly wet conditions in mid-to-late spring and autumn.

April 2024 was the wettest on record in north-west England (since 1871). In contrast, June and August 2024 were drier, leading to:

• reduced river flows
• lower groundwater levels
• a seasonal drop in reservoir storage across England – from 89% at the end of June to 79% by the end of August which is typical for the summer period

Autumn brought a return to wetter conditions. September 2024 recorded nearly double the average rainfall and was the wettest September since 1976. Winter was more variable, with December and February below average, and March 2025 was the driest March since 1961.

Soil moisture deficits (SMDs) peaked in August 2024 following summer drying, then declined with the onset of autumn rainfall. SMDs across England remained low through winter, with soils wetter than expected in many areas. However, March 2025 saw a sharp rise in deficits due to record low rainfall, indicating an earlier than usual start to seasonal drying.

At the end of March 2025, groundwater levels were classified as normal or above at all but two reported sites. Dry weather has continued into the 2025 to 2026 period so far, leading to widespread activation of drought plans. The impact of these dry conditions will be in next year’s annual submissions, but we summarise the 2025 drought in this report.

1.3 Summary of 2025 drought impacts 

During 2025, England has experienced one of the driest spring and summer periods in decades, leading to widespread drought conditions.

Reservoir levels dropped significantly, prompting water companies to introduce temporary use bans (TUBs), commonly known as hosepipe bans, affecting nearly 9 million people. These water companies include Yorkshire Water, Thames Water, South East Water and Southern Water.

In response, the Environment Agency and the National Drought Group coordinated national efforts. They issued drought permits and monitored environmental risks to protect water supplies and ecosystems. Water companies took various measures to manage water resources and protect the environment.

Rainfall during September 2025 has helped to stabilise reservoir and river levels across England, however, these remain below average in multiple areas. The potential for a return to dry conditions means we should continue to manage demand for water and water resources carefully over the autumn. For more drought information see our Dry Weather Information 2025.  

Figure 1: Observed rainfall between April 2024 and March 2025 compared to probability bandings (by hydrological area)

Rainfall data for 2024 and 2025, extracted from Environment Agency 1km gridded rainfall dataset derived from Environment Agency intensity rain gauges. (Source: Environment Agency. Crown Copyright, 100024198, 2024.) Rainfall data prior to 2023, extracted from Met Office Hauk 1km gridded rainfall dataset derived from registered rain gauges (Source: Met Office. Crown copyright, 2024.)

The Environment Agency publish monthly water situation reports which provide more detail on monthly rainfall data compared to long term averages.

 2. Analysis of 2024 to 2025 data

This report summarises water resources performance across England at both water company and national levels, with additional context at the water resource zone level.

Water resource zones are defined geographical areas where customers receive the same level of service and face the same risk of supply failure.

Performance is assessed by regulators year on year, and against forecasts in the WRMP (currently WRMP24).

Annual review data submitted by water companies is available on data.gov.uk. There may be differences between figures reported by the Environment Agency and Ofwat due to differing metrics and reporting requirements.

Data used to assess performance 

Outturn data and dry year annual average (DYAA) data are used to assess performance.

Outturn refers to the actual results a water company delivers over a year, such as how much water was supplied and used. These results are compared with the company’s long-term plans to see if they’re on track.

Water companies adjust the data to account for weather conditions, so it can be fairly compared with forecasts.

The DYAA is a key planning scenario used by water companies to estimate how much water people use during a hot, dry year. In these conditions, water use tends to rise, especially for things like watering gardens, while water supplies may be lower due to reduced rainfall. It reflects the average daily water use over a full year of dry weather, not just short-term peaks.

Planning for DYAA helps water companies by:

• ensuring their systems can meet this higher demand without needing restrictions like TUBs
• ensuring the water supply remains reliable, even in challenging weather
• supporting decisions about future investment in infrastructure and water-saving measures

Absolute values presented in the report may differ from those submitted due to numerical rounding. This is due to the way that our tool aggregates reported data over different spatial resolutions and combines metrics reported to differing numbers of decimal places.

Affinity Water’s supply demand balance (SDB) figures may be subject to revision pending ongoing discussions about representation of headroom in its submission. Discussions with United Utilities regarding large population changes could affect PCC figures and have broader implications for national statistics.

The data presented reflects the latest available information as of end of August 2025 . Figures may be updated due to the evolving nature of these discussions. Any appropriate revisions will be published on GOV.UK as they become available.

2.1 Overall supply-demand balance

Despite a wetter than average year in 2024 to 2025, which helped reduce overall water demand, 18 areas across England still faced challenges in balancing water supply and demand.

These issues arise when the amount of water available during drought conditions fails to meet what is needed, even after accounting for an uncertainty buffer (known as target headroom). This is based on the DYAA and critical period scenarios established within WRMPs.

Over half of all water resource zones reported smaller surpluses than expected, based on previous forecasts. This is caused by higher demand for water than forecast, in part due to insufficient action to manage demand effectively. In some cases, there have also been delays in delivering new water supply projects, impacting overall SDB.

Regulators are working closely with water companies to improve progress and prevent future shortfalls. Where there are immediate risks of water shortages during droughts, companies are expected to speed up action to mitigate these risks. These expectations are outlined in joint letters from regulators, which are available on Ofwat’s website.

2.2 Water abstracted, water losses and operational use

In 2024 to 2025, water companies across England abstracted an average of 14,637 million litres of water per day (Ml/d) from the environment. This is slightly less than the previous year’s 14,664 Ml/d. This small drop is a step in the right direction. Greater abstraction reductions are needed to protect the nation’s rivers, lakes and groundwater sources.

Before water enters supply, some of it is lost during transport and treatment. In 2024 to 2025, around 526 Ml/d or 3.8% of all water was lost or used in operations before entering the supply network. That’s an increase from the year before (433 Ml/d).

Water companies must do more to minimise losses before water enters the distribution network. Reducing water loss not only protects the environment, but it also helps ensure a reliable supply for everyone. 

All companies are expected to:

• monitor water volumes from source to supply
• identify where losses occur
• take action to reduce losses – including improving treatment efficiency, reducing leakage and promoting water efficiency among customers

Figure 2 presents these losses and operational use as a percentage of water put into supply by each company. This shows some companies are losing more water than others. Some variation is to be expected due to differences in geography, network length and raw water quality.

We are concerned about companies with losses significantly above the national average of 3.8%. We will engage with South East Water further to understand any best practice it has done to achieve such low levels of losses.

Figure 2: Water losses and operational use as a percentage of distribution input (DI) per company in 2024 to 2025

	Water losses as % of DI
Anglian Water	8.8%
Bristol Water	6.6%
South Staffs Water	5.9%
United Utilities	4.7%
Northumbrian Water	4.4%
National average	3.8%
Yorkshire Water	3.7%
Southern Water	3.6%
Essex & Suffolk Water	3.5%
Thames Water	3.5%
South West Water	2.6%
Wessex Water	2.5%
Affinity Water	2.5%
SES Water	2.5%
Portsmouth Water	2.0%
Severn Trent Water	2.0%
Cambridge Water	1.5%
South East Water	0.2%

2.3 Outage

Outage refers to a temporary loss of water production capacity due to unplanned, unexpected events such as:

• equipment failure
• power outages
• system breakdowns
• pollution

Outage also includes planned maintenance and upgrades that temporarily reduce output.

In 2024 to 2025, water companies across England reported a national average daily outage of 518 million litres (Ml). This is a 2% improvement compared to the previous year.

The reported outage figures for 2024 to 2025 reflect the amount of water supply lost during the year, adjusted to represent a dry year scenario. This means they show what the impact of the outages would be under drier conditions, helping us plan for future resilience.

Last year’s figures were based on actual conditions experienced, so the 2 sets of data are not directly comparable. Figures submitted to the Environment Agency may differ from those reported to Ofwat as our data reflects the impact on water available for use.

Performance varied across companies. Wetter weather this year allowed some companies to carry out planned maintenance that had been delayed during the 2022 to 2023 drought. This work helps improve the long-term health of water infrastructure, provided it doesn’t impact customer supply. However, heavy rainfall can also bring challenges such as water quality issues.

Company highlights are as follows:

• 7 companies saw an increase in outage, with 3 experiencing significant increases
• 3 companies showing an increase in outage remain within forecast levels including Yorkshire Water which showed a significant rise in outage but remains below forecast
• 10 companies reported reductions in outage – 3 of those companies (Bristol Water, Essex and Suffolk Water, and Portsmouth Water) reported notable reductions of over 50% from 2023 to 2024 levels, all to below 5 Ml/d
• 7 companies have outage above their WRMP forecast -all should remain focused on reducing outage
• some company long-term outages are included as overall deployable output reduction instead – we expect continued focus to bring these assets back online

Some companies are taking proactive steps to improve resilience and reduce outages, such as keeping spare pumps on hand to respond quickly when issues arise. This forward planning is key to maintaining reliable service. Companies with rising outages are expected to review their processes and identify further improvements.

2.4 Distribution input (DI)

Distribution input (DI) is the total volume of water supplied into the network for customer consumption.

Reducing DI is important to help limit the amount of water taken from rivers, lakes and underground sources, especially those that are sensitive or at risk of environmental damage. Reducing DI is a key step toward meeting environmental commitments and ensuring long-term water sustainability.

To address this, water companies have developed long-term plans (known as WRMP24s and regional plans) that set out an ‘environmental destination’. This is a goal to reduce water abstraction and improve environmental outcomes. Meeting this goal will require both investment in new water sources and sustained reductions in demand, making reductions in DI across the sector essential.

Figure 3 shows the industry-wide breakdown of DI reported in the 2024 to 2025 annual review. It shows that:

• household consumption accounts for 59%
• leakage comprises 19%
• non-household consumption is 19%
• the remaining 3% is water taken unbilled and distribution system operational use

Figure 3: National demand and leakage contribution to total DI in 2024 to 2025

	% of DI
Leakage	18.77%
Non-household consumption	19.41%
Measured household consumption	31.76%
Unmeasured household consumption	26.84%
Other	3.23%

DI increased slightly in 2024 to 2025 to 13,946 Ml/d, up from 13,877 Ml/d in the previous year. This is likely due to slightly drier weather.

DI was still greater than expected for an average rainfall year and exceeded forecasts by around 220 Ml/d. This raises concerns about how much greater DI could be in a dry year, potentially putting water supplies at risk.

Under the Environment Act 2021, the Environmental Targets (Water) (England) Regulations 2022 set a national goal to reduce DI per person. This seeks a reduction of 20% by 2037 to 2038, compared to 2019 to 2020 levels.

There has been a 5.1% reduction in DI per person so far, but progress varies across companies. This reflects continued progress in improving water efficiency per person in England, with higher population growth than forecast contributing to this.

We expect all water companies to do more to reduce demand and help protect our water resources, especially those with above-average DI per person (more than 229.2 l/p/d).

Table 1: Nationally reported DI and population data and progress against the water demand target

Metric	Unit	2019 to 2020	2020 to 2021	2021 to 2022	2022 to 2023	2023 to 2024	2024 to 2025
DI	Million litres per day	13,732	14,175	13,927	14,075	13,877	13,946
Population	Thousands	56,895	57,636	58,405	58,883	59,617	60,848
DI per capita	Litres per person per day	241.4	245.9	238.5	239	232.8	229.2
% DI per population reduction from 2019 to 2020 baseline	% reduction	0.0%	-1.9%	1.2%	1.0%	3.6%	5.1%

Figure 4 compares individual water companies to the national average for DI per person. The data shows a range of 68 l/p/d. Company averages range from 207 l/p/d to 275 l/p/d, relative to the national average of 229 l/p/d.

Figure 4: Reported DI per person at a water company level for 2024 to 2025

	DI per capita in litres
South West Water	275.1
Northumbrian Water	246.9
Portsmouth Water	241.6
Thames Water	238.0
Wessex Water	238.0
South East Water	233.4
Affinity Water	233.3
Yorkshire Water	230.4
National average	229.2
United Utilities	227.8
South Staffs Water	227.5
Anglian Water	224.4
Essex & Suffolk Water	220.8
Cambridge Water	218.7
Bristol Water	215.7
Severn Trent Water	212.8
SES Water	208.7
Southern Water	206.8

In the latest WRMPs, water companies forecast a total dry year DI of 13,726 Ml/d for 2024 to 2025. However, the industry reported figures add up to a DI of 13,946 Ml/d in 2024 to 2025. This reflects how some companies are not entering the next asset management period (AMP) on track.

A national reduction of 91 Ml/d was needed from the 2023 to 2024 figure to meet the 2024 to 2025 forecast. An increase of 69 Ml/d was reported, as shown in Figure 5. However, this came alongside a reported increase in population of over 1.2 million, which lead to an overall reduction in DI per person.

While 2024 to 2025 was an average year and the forecast assumes dry year conditions, demand is typically higher in dry years. This means greater reductions will be needed to meet national targets and ensure long-term water security.

Figure 5 shows a slight increase in the reported national daily water use (DI) for 2024 to 2025 compared to the forecasts set out in the WRMP, which are available on data.gov.uk. Over the past decade, this gradual rise in DI has largely been driven by population growth. However, future DI is projected to begin to decline, even as the population continues to grow, due to:

• improvements in water efficiency
• more effective management by water companies

Figure 5: England-wide reported DI 2000 to 2024 and WRMP forecast distribution input from 2024 to 2050 (based on revised draft WRMP24 plans)

2.5 Leakage

Alongside delivering water supplies, water companies are responsible for managing and reducing leakage.

In 2024 to 2025, leakage across England fell slightly by 73 Ml/d from 2023 to 2024 levels. This is a small but positive step following a concerning rise in 2022 to 2023.

National leakage levels reached 2,617 Ml/d, the lowest in over 20 years as shown in Figure 6. However, this remains above the levels forecast in WRMPs, which are available on data.gov.uk. This still means that nearly one in 5 litres or 19% of water put into supply is lost before reaching customers, which is not acceptable.

Figure 6: England-wide reported total leakage 2000 to 2024 and WRMP forecast total leakage from 2024 to 2050 (based on revised draft WRMP24 plans)

The industry, through Water UK, has committed to halving leakage by 2050 compared to 2017 to 2018 levels. The 2027 to 2018 levels were 2,987 Ml/d, as reported to the Environment Agency.

Leakage has reduced by 10% so far, but more progress is needed. Water companies must continue to lead by example and deliver the leakage reduction plans set out in their long-term WRMP strategies.

Figures 7, 8 and 9 show leakage per person, as a percentage of water supplied and per property.

Figure 7: Leakage per person at a water company level for 2024 to 2025

	Leakage per person in litres
Thames Water	53.6
United Utilities	50.6
Wessex Water	49.2
Yorkshire Water	47.1
South West Water	46.8
South East Water	45.0
National average	43.0
Northumbrian Water	42.2
South Staffs Water	41.5
Portsmouth Water	37.8
Affinity Water	36.6
Severn Trent Water	36.6
Anglian Water	36.4
Southern Water	36.1
Bristol Water	28.8
Cambridge Water	27.8
SES Water	26.5
Essex & Suffolk Water	26.1

Figure 8: Leakage as a percentage of DI at a water company level for 2024 to 2025

	Leakage as % of DI
Thames Water	22.5%
United Utilities	22.2%
Wessex Water	20.7%
Yorkshire Water	20.4%
South East Water	19.3%
National average	18.8%
South Staffs Water	18.3%
Southern Water	17.4%
Severn Trent Water	17.2%
Northumbrian Water	17.1%
South West Water	17.0%
Anglian Water	16.2%
Affinity Water	15.7%
Portsmouth Water	15.7%
Bristol Water	13.4%
Cambridge Water	12.7%
SES Water	12.7%
Essex & Suffolk Water	11.8%

Figure 9: Leakage per property at water company level for 2024 to 2025

	Leakage in litres per day
Thames Water	135.99
United Utilities	118.35
Yorkshire Water	108.13
Wessex Water	107.28
South East Water	105.83
National average	101.68
South West Water	97.64
South Staffs Water	95.87
Affinity Water	93.11
Northumbrian Water	92.97
Severn Trent Water	88.25
Portsmouth Water	86.01
Southern Water	83.63
Anglian Water	80.93
Cambridge Water	71.42
Bristol Water	65.29
Essex & Suffolk Water	65.27
SES Water	64.18

Figure 10 shows the normalised values for the components of leakage per person, as a percentage of DI and per property for each water company.

Mild weather in 2024 to 2025 helped limit pipe bursts. However, climate change is expected to increase the frequency of more extreme conditions, such as freeze-thaw cycles and dry spells, that can lead to ground movement and pipe failures.

The industry must be prepared and proactive to:

• manage leakage under more challenging conditions
• prevent future leakage spikes

Figure 10: Normalised leakage at water company level 2024 to 2025

Water company	Leakage per property	Leakage as % of DI	Leakage per person in litres
SES Water	64.18	12.71	26.52
Essex & Suffolk Water	65.27	11.84	26.14
Bristol Water	65.29	13.37	28.83
Cambridge Water	71.42	12.72	27.82
Anglian Water	80.93	16.20	36.36
Southern Water	83.63	17.44	36.07
Portsmouth Water	86.01	15.66	37.83
Severn Trent Water	88.25	17.19	36.57
Northumbrian Water	92.97	17.08	42.15
Affinity Water	93.11	15.71	36.64
South Staffs Water	95.87	18.26	41.54
South West Water	97.64	17.00	46.78
National total	101.68	18.77	43.03
South East Water	105.83	19.29	45.01
Wessex Water	107.28	20.66	49.15
Yorkshire Water	108.13	20.42	47.05
United Utilities	118.35	22.22	50.62
Thames Water	135.99	22.52	53.59

While national leakage fell, only about half of England’s water resource zones saw improvements. In contrast, 15 zones experienced increases of over 10% as shown in Figure 11.

Zones that reported total leakage increase of 10% or more between 2023 to 2024 and 2024 to 2025 are:

• Norfolk East Harling
• Eastbourne (3)
• Suffolk Sudbury
• Norfolk East Dereham
• Farnham (5)
• Kinsall
• Ruthamford Central
• Ruthamford West
• Suffolk Ixworth
• Lincolnshire Bourne
• Norfolk North Coast
• Ashford (8)
• Blyth
• Newark
• Essex Central

For a list of all zones that reported an increase in total leakage between 2023 to 2024 and 2024 to 2025, see PCC and leakage increases: zone data.

This level of localised increase is concerning and highlights the need for sustained focused action on leakage management at the zonal level. Once leakage rises, it becomes much harder to control, making early intervention essential.

Figure 11: Percentage change of total leakage from 2022 to 2023, to 2023 to 2024 at a water resource zone level, using data reported through the annual review

2.6 Per capita consumption (PCC)

Water companies play an important role in promoting customer water efficiency. Reductions in PCC are essential to achieving:

• the long-term water demand target set out in the Environment Act 2021
• interim targets in the Department for Environment, Food and Rural Affairs’ (Defra’s) Environmental Improvement Plan

In 2024 to 2025, average household PCC across England was approximately 136.5 l/p/d. This was a decrease of 0.5 l/p/d from 2023 to 2024 (137 l/p/d). This limited change is likely due to similar mild weather conditions and normal rainfall across both years. When an uplift for dry weather has been applied by water companies, average DYAA household PCC is estimated to have been 140.3 l/p/d.

Figure 12 shows that PCC increased significantly during the COVID-19 pandemic (2020 to 2021) due to increased time spent at home, followed by a gradual decline. On a positive note, this year’s PCC has dropped below pre-COVID-19 pandemic levels. Above average rainfall in 2024 to 2025 is likely to have suppressed household consumption, compared to what we could expect in a dry year. The forecast PCC data is available on data.gov.uk

Figure 13 shows that company level PCC ranged from 119.9 l/p/d (Cambridge Water) to 160.0 l/p/d (Portsmouth Water). Variability is influenced by factors such as:

• meter penetration
• weather
• housing type
• billing structures

Six companies reported reductions in PCC compared to 2023 to 2024. However, Portsmouth Water and Severn Trent Water reported increases exceeding 5 l/p/d, while South Staffordshire Water and Yorkshire Water reported increases of over 2 l/p/d.

United Utilities reported a notable reduction in PCC. However, this improvement is largely due to a significant increase in reported outturn population figures, by over 700,000 people, following a methodology change by the company.

This adjustment affects national and average PCC comparisons between 2023 to 2024 and 2024 to 2025 and should be considered when interpreting performance trends. We are reviewing this change further and assessing the wider implications of this on tracking water demand target progress.

Figure 12: Average PCC across households in England reported between 2005 to 2024 and forecast average PCC from 2024 to 2050 (based on revised draft WRMP24 plans)

Figure 13: Average water company PCC reported in 2024 to 2025

	Litres per person per day
Portsmouth Water	160.00
Affinity Water	153.9
Essex & Suffolk Water	153.40
South West Water	153.10
Northumbrian Water	150.30
SES Water	146.40
Bristol Water	146.30
South East Water	143.40
South Staffs Water	140.30
Thames Water	137.70
National average	136.53
Severn Trent Water	134.80
Wessex Water	131.10
Yorkshire Water	127.80
Southern Water	127.20
Anglian Water	126.20
United Utilities	124.60
Cambridge Water	119.90

At the water resource zone level, approximately half of all zones reported an increase in PCC despite wet conditions shown in Figure 14.

For a list of all zones that reported a PCC increase between 2023 to 2024 and 2024 to 2025, see PCC and leakage increases: zone data.

This highlights the need for continued focus on company-led measures to improve water efficiency, including metering rollout programmes and household water audits.

Figure 14: Map showing percentage change in reported average per capita consumption between 2022 to 2023 and 2023 to 2024 at a water resource zone level

2.7 Non-household consumption

Non-household water use includes properties such as businesses, schools, hospitals and student accommodation. In 2024 to 2025, these properties used 2,706 Ml/d, a small reduction from 2,757 Ml/d the previous year.

Defra’s Environmental Improvement Plan 2023 aims to achieve a 9% net reduction in non-household water use by 2037 to 2038, from 2019 to 2020 levels. This year’s figures show a reduction of 3.15% since 2019 to 2020, showing good progress towards the goal. However, water use fell sharply during the COVID-19 lockdowns and has not fully returned to pre-COVID-19 levels since.

Increasing demand in the east of England has led some water companies to limit new non-domestic water connections to protect supplies and the environment. Water companies and retailers need to do more to help businesses use water efficiently to meet long-term goals and enable growth. Smart metering is essential to this, giving businesses better tools to track and manage their water use.

We expect water companies to prioritise their supply and demand actions to enable non-household growth where there are constraints.

2.8 Metering of households and non-households

In 2024 to 2025, over 62% of households in England are billed based on how much water they use (including empty, unoccupied homes known as ‘void properties’).

Figure 15 shows company percentages. While this shows steady progress, it’s slightly below the 63.6% target set in WRMPs.

Metering rates vary widely across the country, with some water companies metering over 85% of homes, while others are closer to 38%. Some homes have water meters installed but still choose to pay a fixed rate. These homes aren’t counted in the figures that show how many households are actively using metered billing.

Figure 15: Percentage of households being charged on a metered tariff including void properties, reported by water companies in 2024 to 2025

	% household metering charged
Portsmouth Water	37.8%
South Staffs Water	43.0%
Northumbrian Water	44.4%
United Utilities	48.3%
Severn Trent Water	52.6%
Thames Water	59.1%
Yorkshire Water	59.3%
National average	62.7%
Essex & Suffolk Water	65.8%
Bristol Water	67.3%
SES Water	68.8%
Affinity Water	71.4%
Wessex Water	73.7%
Cambridge Water	74.0%
South West Water	83.3%
Southern Water	84.1%
Anglian Water	84.9%
South East Water	88.6%

For business and other non-household properties, around 91% are metered, excluding empty buildings. This is a small decrease from last year and varies by water company as detailed in Figure 16. This could be partly due to the mild, normal weather conditions experienced.

There remains great opportunity for greater water efficiency in non-households, as some properties remain unmetered. And while most are metered, smart meters are still uncommon.

Upgrading to smart meters will help businesses track their water use more easily and make smarter choices about saving water.

Figure 16: Percentage of non-households being charged on a metered tariff excluding void properties, reported by water companies in 2024 to 2025

	% non-household excluding voids
Thames Water	83.5%
Affinity Water	86.6%
SES Water	86.9%
Yorkshire Water	87.4%
South Staffs Water	88.2%
Portsmouth Water	88.6%
Northumbrian Water	89.0%
Cambridge Water	89.9%
United Utilities	90.2%
National average	91.1%
Southern Water	92.9%
Essex & Suffolk Water	93.5%
Wessex Water	93.5%
Severn Trent Water	94.6%
South East Water	95.5%
South West Water	96.2%
Bristol Water	96.7%
Anglian Water	98.7%

Smart water metering of households and non-households

For the first time, water companies have begun to formally report smart water metering installations as part of the annual review submission. Our assessment is based upon this initial reported data.

By 2024 to 2025, approximately 12% of households across England were reported as smart water metered, using the latest AMI technology.

Smart water metering provides multiple automatic data reads per day on water usage, allowing:

• continuous flows from leaks in the home to be quickly identified
• greater insights to help customers understand their water use
• clarity on the steps customers can take to be more water efficient

It is positive to see some companies have made a strong start to their smart water metering programmes, although this varies substantially as shown in Figure 17. Anglian Water has smart metered just under half of all its households (48%) and Thames Water has smart metered approximately a quarter of all its households.

Many companies are yet to start their rollout of smart water meters with this investment expected from 2025 to 2026 onwards, as per their business plans and WRMP24 plans.  

Figure 17: Percentage of households with a smart meter (AMI)

	% households
Bristol Water	0.0%
Southern Water	0.0%
South East Water	0.0%
Wessex Water	0.0%
United Utilities	0.1%
SES Water	0.1%
Portsmouth Water	0.2%
Affinity Water	1.3%
Yorkshire Water	3.1%
Northumbrian Water	4.7%
South West Water	5.3%
South Staffs Water	7.0%
National average (England)	11.9%
Severn Trent Water	12.4%
Cambridge Water	13.7%
Essex and Suffolk Water	21.0%
Thames Water	24.3%
Anglian Water	47.7%

Smart water metering installations in non-households have also begun. Based on data reported by water companies, approximately 9% of all non-households have a smart water meter. Again, this is very variable around the country as shown in Figure 18.

Figure 18: Percentage of non-households with a smart meter (AMI)

	% households
Affinity Water	0.00%
Bristol Water	0.00%
Portsmouth Water	0.00%
Southern Water	0.00%
SES Water	0.00%
South East Water	0.00%
Wessex Water	0.00%
United Utilities	0.00%
Northumbrian Water	3.32%
Yorkshire Water	3.33%
South Staffs Water	4.77%
South West Water	6.33%
Essex and Suffolk water	6.69%
Cambridge Water	7.96%
National average (England)	8.97%
Thames Water	23.06%
Severn Trent Water	42.15%
Anglian Water	42.24%

2.9 WRMP and water industry national environment programme (WINEP) scheme delivery

The timely and effective delivery of water supply schemes by water companies is crucial to customer resilience and safeguarding the environment.

Water company annual review submissions show that many schemes expected in asset management period 7 (AMP7) have been delayed. However, most water supply schemes are not expected until later this decade or in the 2030s. Despite this, this year’s annual review has already flagged significant risks to the timely delivery of future schemes.

This is a serious concern, and we expect all water companies to take corrective action in response to delivery issues to stay on track.

The Environment Agency is introducing enhanced water company reporting on scheme delivery to ensure:

• risks and delays are raised early
• issues are escalated
• water companies are responding appropriately to delivery issues

Concerns about progress on specific schemes have been highlighted in joint regulatory annual review letters, which will be published on Ofwat’s website.  

It is vital that water companies deliver these demand and supply schemes on time. Delivering schemes is essential to ensuring reliable water supplies in England for current and future needs. Delays could reduce resilience to drought and increase pressure on both water resources and the environment.

Specifically, water companies play a key role in protecting the environment through the Water Industry National Environment Programme (WINEP). We are concerned that across England there is less surplus water available in most water resource zones during drought conditions than previously planned. This reflects challenges in delivering new supply schemes in increasing water supplies and reducing demand and leakage.

As part of this, water companies propose and fund solutions to environmental challenges, working closely with regulators to develop solutions. Water companies follow guidance that helps them identify options with the greatest benefits for nature, customers and communities. This includes considering natural capital and customer preferences. Regulators then review the proposals to ensure they are:

• backed by evidence
• supported by customers
• offer good value for money

Approved options are included in the WINEP framework for delivery.

Water companies are also carrying out important investigations into the sustainability of water abstraction, as part of the WINEP. We expect these to be prioritised to help protect and improve the environment.

We report individual water and sewerage company progress on WINEP delivery as part of our environmental performance assessment (published in 2025). We have also recently consulted on a methodology to assess water only company performance. We will continue to work with only water companies as this work progresses.

2.10 New appointments and variations

New appointments and variation (NAV) companies are limited companies authorised to provide water or sewerage services, or both, in specific geographic areas previously served by incumbent water companies. These appointments are regulated and appointed by Ofwat to:

• promote competition
• improve service quality
• offer developers and customers more choice in water and sewerage services
• support innovation and efficiency in the sector

NAV companies typically operate under bulk supply agreements, purchasing treated water from the neighbouring water company.

The NAV market is expanding rapidly. Eight companies with sites are currently appointed by Ofwat. They supply approximately 123 Ml/d to over 380,000 people across more than 949 sites.

This data is based upon the five NAV companies that have submitted their WRMP24. All NAV companies with WRMPs are expected to undertake an annual review once they have a final WRMP. The quality and consistency of annual review submissions vary across providers. Given the dynamic status of NAVs and NAV sites, the NAV data in this report may differ slightly with data on Ofwat’s website.

3. Looking to 2025 to 2026 and beyond

3.1 Focus and expectations of the industry for 2025 to 2026

The next reporting year, 2025 to 2026, will mark the first year of the price review 2024 (PR24) business plans and final WRMP24 plans for most water companies.

We expect water companies to prioritise and demonstrate progress in implementing their WRMP24 water resources schemes. The Environment Agency, Ofwat and Defra wrote to companies setting out this expectation at the start of asset management period 8 (AMP8). This includes companies that have not yet published a final WRMP24. For the full letter see Ofwat’s engagement on WRMP24.  

We also acknowledge that during 2025 to 2026, dry weather and drought impacts will have been felt by most water companies to some degree. Multiple water companies have implemented TUBs during the year. We expect these companies to assess the impacts of these on demand and report on findings and lessons in the next annual review process.

The year has also highlighted some supply resilience challenges. We expect these to be assessed further and appropriate additional actions should be set out through the annual review process to help:

• improve water resources resilience
• learn from experiences during the year

3.2 Smart water metering

The first year of AMP8 (2025 to 2026) will be a critical moment for smart water metering across England. For many companies, this will be the first year where smart water meters are being deployed, as shown in current levels of smart water metering in figures 15 and 16.

To enable both a positive customer experience and water efficiency savings, we expect the industry to ensure it has:

• effective data infrastructure and analysis systems in place
• a clear and effective integrated smart water metering programme

Regulators are working collectively on the newly formed Smart Water Metering Delivery Group and will be working with the industry to assess maturity with rollout and help e stablish standards. This is to assist smart water metering plans to maximise demand benefits and learn lessons from companies with existing programmes.

3.3 Government water efficiency policies and Ofwat water efficiency fund

It is a pivotal time for policies focussed on enabling the nation to be more water efficient.

A consultation on more efficient standards in new homes, through an update of Building Regulations 2010, is underway. This provides an important opportunity to make future homes more water efficient by design.

We are anticipating the government will launch its mandatory water efficiency labelling scheme (MWELS) in 2026. This is expected to:

• empower consumers across the UK to make more informed choices when purchasing key water-using goods
• deliver substantial and sustained water demand reduction over time
• enable us all to understand the comparative water efficiency of products
• encourage the selection of products that offer the best water and energy savings

Ofwat have also announced the launch of its customer-funded Water Efficiency Fund, which is split into 2 streams:

• Water Efficiency Lab
• the delivery of a water efficiency campaign

The Water Efficiency Lab is expected to open for applications for its first challenge area later in 2025. It will help fund the development of new technologies and processes for water efficiency, enabling the upscaling of the most promising innovations.

Preparations for the water efficiency campaign are underway. This will be a crucial step in improving our water literacy and empowering people and businesses across the country to use less water.

These initiatives will help deliver the step change and priority needed on improving our water efficiency. Importantly, they must come hand in hand with water companies taking decisive action to:

• reduce leakage
• roll out smart water meters
• support their customers to be water efficient

3.4 Monitoring and adaption

Water companies are expected to deliver the commitments outlined in their WRMPs, as part of providing essential services funded through customer bills.

We understand that circumstances can change. Companies must have strong systems in place to monitor and respond to potential risks to address any shortfall in either increasing supplies or reducing demand. Where challenges arise, we expect clear and timely communication with regulators, customers and wider stakeholders.

Through PR24, Ofwat has implemented enhanced delivery oversight mechanisms. This reflects the increased investment and delivery associated with WRMP24 activities.

3.5 Regional water resources planning and strategic resource options

Water resources planning in England is becoming more collaborative. Water companies are now working more closely with each other and with other sectors that rely on water. This is helping to build a more joined-up and resilient approach to managing this vital resource.

Following the step change through the creation of regional water resources groups during AMP7, we expect regional groups to build upon existing achievements to deliver multi-sector planning. We expect them to drive improvements to:

• water supply resilience
• water efficiency and demand management
• cross sector engagement
• environmental protection during AMP8

Our expectations are fully set out in Appendix A of our National Framework for Water Resources.

When one water company reduces demand or introduces new water supplies, it can affect others, especially those nearby. As we move into 2025 to 2026 and beyond, it’s important for regional groups to carefully track the delivery of plans and to understand the wider impacts. This will help ensure that water continues to be managed responsibly and sustainably for everyone.

4. Conclusions

The 2024 to 2025 annual review reveals mixed progress and ongoing challenges in water resource management delivery across England.

While there have been some improvements, such as reductions in leakage and increased metering, many water companies are still falling short of their WRMP24 forecasts. This is seen particularly in areas related to demand management and supply resilience.

Despite wetter than average conditions, demand for water remains too high. DI exceeded expected levels, placing additional strain on the environment.

To meet dry-year forecasts and long-term environmental goals, more significant reductions in demand are needed. There are major opportunities for this through:

• new technologies
• new government policies
• more investment than ever before by the water industry

Leakage continues to be a concern. Although national leakage levels are at their lowest in over twenty years, nearly 19% of water put into supply is still lost. Moreover, several zones have experienced localised increases in leakage, indicating a need for more targeted interventions.

Smart metering has emerged as a critical tool for progress on both improving water efficiency and helping to tackle leakage. Currently, only 12% of households are equipped with smart meters. The beginning of AMP8 presents a key opportunity for water companies to accelerate the rollout and ensure that the necessary data infrastructure is in place to support it.

Progress on reducing PCC remains limited. PCC figures are still above WRMP starting points. Some reported improvements, such as those from United Utilities, need to be viewed cautiously due to significant change in population estimates. Non-household consumption has seen a slight decline, but further efforts are needed to promote water efficiency across business and other sectors.

Environmental delivery also requires urgent attention. Delays in the implementation of schemes and reduced drought resilience in many zones highlight the importance of timely implementation of both supply and demand initiatives.

Looking ahead, 2025 to 2026 will be a critical year for the sector. As PR24 business plans and WRMP24s come into effect, companies must show measurable progress. The impacts of drought and TUBs experienced during 2025 must be reflected in future planning and reporting.

Ultimately, the sector must now focus on delivering its commitments with urgency, transparency and collaboration. Efficient water use is a shared responsibility, essential for securing resilient supplies, protecting the environment and supporting future growth, especially in the face of increasing drought conditions.

PCC and leakage increases: zone data

All zones that reported an increase in total leakage between 2023 to 2024 and 2024 to 2025, as shown in figure 11, are:

• Norfolk East Harling
• Eastbourne (3)
• Suffolk Sudbury
• Norfolk East Dereham
• Farnham (5)
• Kinsall
• Ruthamford Central
• Ruthamford West
• Suffolk Ixworth
• Lincolnshire Bourne
• Norfolk North Coast
• Ashford (8)
• Blyth
• Newark
• Essex Central
• Hartlepool
• Suffolk Thetford
• Essex
• Ruthamford North
• Stafford
• 5 Stort
• Bishops Castle
• Ruthamford South
• Tunbridge Wells (1)
• Northern Central
• Suffolk East
• Maidstone (6)
• SWOX
• Guildford
• Hamps Kingsclere
• North Eden
• Norfolk Happisburgh
• Carlisle
• Kent Medway East
• Isle of Wight
• Lincolnshire Central
• 4 Pinn
• UU-Strategic
• Berwick-Fowberry
• 2 Colne
• Cranbrook (7)
• Grid SWZ

Zones that reported a PCC increase between 2023 to 2024 and 2024 to 2025, as shown in figure 14, are:

• Lincolnshire East
• (Historic) North Norfolk Coast
• Norfolk Norwich and the Broads
• Norfolk Aylsham
• Norfolk North Coast
• SvT - Nottinghamshire
• SvT- Strategic Grid
• Wolverhampton
• 8 Brett
• North Staffs
• Norfolk East Dereham
• (Historic) North Norfolk Rural
• 7 Dour
• Norfolk Bradenham
• Suffolk Thetford
• Portsmouth
• Norfolk Wymondham
• Chester
• Shelton
• Newark
• Bournemouth
• Kent Medway West
• Stafford
• Norfolk Harleston
• Norfolk East Harling
• (Historic) South Lincolnshire
• South Staffordshire
• Kent Medway East
• (Historic) South Norfolk Rural
• Bracknell (4)
• Lincolnshire Central
• Sussex Hastings
• Ruyton
• (Historic) Central Lincolnshire
• 2 Colne
• 5 Stort
• Mardy
• Roadford
• Kent Thannet
• (Historic) Bourne (Lincolnshire Borne)
• Blyth
• 1 Misbourne
• Tunbridge Wells (1)
• Bristol
• Eastbourne (3)
• Southampton East
• Cambridge
• Slough Wycombe Aylesbury
• Whitchurch and Wem
• 3 Lee
• Southampton West
• Essex
• Forest and Stroud
• Ashford (8)
• SES Water
• Sussex Worthing
• Berwick-Fowberry