GrantRadar

Ofwat Water Efficiency Fund, delivered by Challenge Works (Nesta)

Water Efficiency Lab 2 (WEL 2): Reducing customer-side leakage

A challenge competition paying £150,000 to £1.5 million per winning entry for innovative ways to reduce leakage on the customer side of the water meter in England and Wales. It is the second annual round of Ofwat's £25 million Water Efficiency Lab. Any UK-incorporated organisation can lead, including incorporated charities, alone or with partners; no water company partner is required. WEL pays up to 90% of costs, and entrants contribute at least 10%.

Apply on the funder’s site
You could get
£150,000 – £1,500,000
Closes in
2 days left
20 October
Effort
Heavy
budgets, references, often several stages

Who can apply

  • Innovators from any sector
  • The lead entrant must be a UK-incorporated entity or UK statutory corporation, hold a UK business bank account on entry, accept the Terms and Conditions and have no disqualifying conflict of interest
  • The lead signs the Winner Agreement and receives all the funds
  • A single organisation can enter alone, or lead a partnership or consortium, which may include international partners
  • A water company partner is not required, but is expected where adoption depends on one
  • Entrants must contribute at least 10% of total costs: charities, SMEs, universities and water retailers can contribute in cash or in kind, while wholesaler water companies must contribute cash
  • Every entry must show a viable route to market

What it funds

  • Water-efficient technologies, processes or approaches that reduce customer-side leakage (on customers' premises) and will reduce water consumption in England and Wales, meeting the WEL 2 Challenge Statement and assessment criteria
  • Entries are expected to be at Innovation Maturity Level 2 to 4 at project start, to start within three months of award, and normally to complete within three years
  • Pre-existing initiatives are eligible only if the entry goes clearly beyond existing approaches
  • WEL funds up to 90% of total project costs, paid in advance as a single payment to the lead entrant after winners are announced

What it will not fund

  • Leads that are individuals or unincorporated groups
  • Leads that are not UK-incorporated entities or UK statutory corporations (organisations registered only as a UK Establishment do not qualify)
  • More than 90% of an entry's total costs
  • A mandatory 10% contribution funded from other public grants
  • Water company contributions funded by charges to water customers
  • Ideas unrelated to the WEL 2 theme of reducing customer-side leakage
  • Entrants with conflicts of interest that rule out participation

How to apply

  1. Read the WEL 2 Entrant Handbook, Challenge Statement, assessment criteria, FAQs and Terms and Conditions
  2. Optionally attend entrant support events or use the Partnerships form to find partners
  3. Draft answers using the Entry Drafting Form and complete the Project Delivery Template (use v1.2, updated 15 Sep 2026)
  4. Create a Submittable account and complete the online entry form as the lead entrant
  5. Attach the completed Project Delivery Template and submit by 1pm on 20 October 2026

Late entries are not accepted. Contact waterinnovation@challengeworks.org for reasonable adjustments, ideally early in the entry period.

Have ready

  • Online entry form (Submittable)
  • Project Delivery Template (budget, delivery plan and risk register)

Optional extras are one letter of support on one A4 page (not from a formal partner) and one image or diagram with minimal text.

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