Environment Agency (EA) assessment reveals that England faces 5 billion litre a day shortfall for public water supplies by 2055 – and a further 1 billion litre a day deficit for wider economy.
England is on course to face a daily shortfall of 5 billion litres of public water by 2055 unless urgent action is taken to overhaul its water infrastructure and consumption habits, according to a stark warning from the Environment Agency (EA) issued on Monday.
The new assessment, published in the EA’s National Framework for Water Resources, reveals that another one billion litres of water per day will also be required by businesses to power the economy — including emerging industries such as data centres and hydrogen production — bringing the total projected gap to six billion litres daily. The anticipated public supply shortfall alone is equivalent to a third of the nation’s current water usage, or roughly the volume of 4.5 Wembley Stadiums.
The report identifies four major pressures behind the looming crisis: climate change, a rising population, increasing industrial demand, and the need to reduce environmental harm. Without a coordinated national strategy, the EA warns that unsustainable water abstraction could degrade rivers, reduce biodiversity, hamper economic development, and even affect food security.
“This deficit threatens not only the water from your tap but also economic growth and food production,” said Environment Agency Chair Alan Lovell. “Taking water unsustainably from the environment will have a disastrous impact on our rivers and wildlife. We need to tackle these challenges head-on and strengthen work on coordinated action to preserve this precious resource and our current way of life.”
Leak reduction, infrastructure, and innovation
The EA expects 60% of the public water deficit to be met through better demand management and leakage reduction, with the remaining 40% addressed through expanded supply, including new infrastructure. A key target is a 17% cut in leakage by 2030 and a 50% reduction by 2050.
Smart meters are expected to play a pivotal role, with water companies committing to install 10 million more meters across homes and businesses. Metered homes typically consume 122 litres per person per day, compared to 171 litres in non-metered households, indicating major potential savings through behavioural change.
Household water efficiency is also on the agenda. The EA is working with the government to introduce mandatory efficiency labelling on water-using appliances such as showers, toilets and dishwashers. Meanwhile, the public is encouraged to adopt simple habits such as shorter showers, turning off taps when brushing teeth, and running only full loads in washing machines and dishwashers.
New infrastructure is already in the pipeline. Water companies plan to build 10 new reservoirs, nine desalination plants, and seven large-scale water recycling schemes by 2050. To accelerate these projects, the EA, Ofwat, and the Drinking Water Inspectorate have formed the Regulators’ Alliance for Progressing Infrastructure Development (RAPID), which will fast-track approvals and investment.
The water sector has committed to £8 billion of spending over the next five years specifically for increasing supply and managing demand. This forms part of the wider £104 billion in private sector investment secured for water infrastructure improvements across England.
Ofwat Chief Executive David Black said the investment marked a crucial turning point. “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 and deliver an expanded pipeline of 30 major projects we need in England and Wales.”
Regional resilience and environmental protection
Since the EA’s last national framework in 2020, five regional water resource groups have been established or strengthened to address localised water needs and challenges. These groups help tailor solutions to the distinct demands of different industries and geographies — from agriculture in East Anglia to urban supply challenges in the South East.
Emerging industries such as data centres and hydrogen production are of particular concern due to their high water demands for cooling and processing. The EA is urging these sectors to increase use of non-potable water — that is, water not suitable for drinking but perfectly usable for industrial applications.
There is also growing concern about the ecological impact of abstraction — the extraction of water from rivers, lakes and aquifers. The EA wants to see more sustainable abstraction methods adopted, particularly in environmentally sensitive areas such as chalk streams. Poor water management in these regions can quickly lead to ecosystem collapse.
Water scarcity is already affecting housebuilding projects in counties like Sussex, Cambridgeshire and Norfolk, where developments have been delayed due to insufficient water supply. In agriculture, the EA is helping farmers improve resilience by encouraging shared water rights and joint ownership of new reservoirs.
Public role vital to long-term success
While large infrastructure projects are critical, the Environment Agency is also calling on the public to do its part. Simple household actions can save hundreds of litres per month, and cumulatively make a significant national difference.
Even deleting old emails is being flagged as a sustainability step — data centres that store information require water for cooling, meaning less digital clutter could indirectly reduce water consumption.
With England heading towards a critical water tipping point by mid-century, the EA’s message is clear: only rapid, collective, and sustained action can avert a water crisis that threatens the country’s environment, economy, and everyday life.