New streams feature in Ofwat’s Innovation Fund for 2025-30

Ofwat has confirmed it will introduce three new funding streams into its Innovation Fund in AMP8: one to support collaborative challenges, one to support innovation implementation, and one to support cross-sector challenges.

In a document setting out its main decisions on the fund, the regulator also confirmed the £400m pot would continue to use the current aims, but would now defer to the themes set out in the water sector Innovation Strategy.

There will be one main Water Breakthrough Challenge per year, and at least two Water Discovery Challenges across the AMP. The next round (six) of the Water Breakthrough Challenge will open in September 2025, and the second round of the Water Discovery Challenge will open by January 2026.

Ofwat said it would appoint a delivery partner early this year, to begin work in April, and an evaluation specialist to undertake a full impact and value for money evaluation of how the fund performed in AMP7. A review in 2027 will act on the findings of the evaluation.

Ofwat added that its new Water Efficiency Fund will also launch in April 2025. The Water Efficiency Lab component will be run by the Innovation Fund delivery partner, who will design the application process and eligibility criteria.