Why Water Demand Reduction Must Be Central to Climate Adaptation

The Climate Change Committee’s (CCC) 2025 progress report to Parliament published this week sends a clear message: the UK is not prepared for the impacts of climate change, and the water sector is no exception. While headlines focus on floods, heatwaves and economic shocks, there is a quieter crisis brewing in our pipes, treatment plants, and reservoirs: we are not managing water demand in a way that reflects the new climate reality.

As a Water Efficiency Specialist working at the intersection of digital innovation and strategy, I see this as a pivotal moment. The CCC highlights a lack of adequate adaptation planning across key sectors, noting that the UK’s aging infrastructure and fragmented governance are ill-equipped to handle growing risks. But what is often overlooked is that resilience starts not just with supply, but with demand.

A Sector Under Pressure

The UK water sector is facing a convergence of pressures of climate volatility, population growth, housing expansion, and stricter environmental regulation. Droughts are becoming more prolonged, while shorter, higher-intensity rainfall is testing the limits of our drainage networks. In parallel, the infrastructure originally designed to support a five-day, office-based working week is struggling to adapt to the lasting shift toward hybrid work patterns brought on by Covid-19. Water scarcity is no longer a problem of the future; it’s a very present risk that requires immediate attention.

This isn’t a recent discovery. In January 2023 the governement published its Environemental Improvement Plan setting clear expectations for cross-industry collaboration on key environmental targets. Among these, water supply and demand were given explicit objectives. The goal to significantly reduce leakage across the UK was ambitious, but anticipated – the sector had already committed to a 50% reduction by 2050, with all responsible parties on board. However, interim targets were set for both metrics by 31 March 2038 which we knew would be stretching for demand. The demand reduction plan also included lowering business water consumption – an area largely outside the direct control of water wholesalers. In short, water companies lacked a cohesive strategy to tackle this challenge.

That was 2 years ago. Since then the CCC report assesses most adaptation plans across the water sector as ‘Insufficient’ or ‘Limited’ citing under developed or poorly implemeted solutions.  This is not just a gap in strategy – it’s a gap in mindset. We are still operating as if demand is fixed and supply can endlessly stretch to meet it.

Digital Tools for a Smarter Future

Demand management cannot be considered an afterthought, but must be treated as a cornerstone of climate adaptation. With the right tools and insights, we can shift from reactive to proactive water management.

At Skewb, we focus on leveraging digital solutions to address future need. Our digital product, Skewb Novus is an advanced water network optimisation platform, supported by AI and Machine Learning. It brings together water company data and information in geospatial visualisation and uses sophisticated data science modelling to generate real-time business insights before, during and after events.

At a high level, the product provides companies with:

• Monitor consumption trends in near real-time
• Detect and reduce leakage
• Segment customers and tailor behavioural nudges
• Forecast demand based on environmental and socioeconomic drivers
• Support long-term planning for growth and climate risk

From Compliance to Competitive Edge

Beyond technology, achieving meaningful progress in water demand reduction requires a cultural shift within the utilities sector. The shift must reframe efficiency not as a regulatory obligation, but as a strategic opportunity. When seen through this lens, demand reduction becomes a ‘double win’ as it helps meet mandatory performance targets while also delivering long-term cost savings, resilience, and progress toward net zero commitments. This shift demands leadership, collaboration, and a rethinking of traditional commercial models that often overlook the strategic value of managing demand.

The CCC has rightly called out the need for clearer targets, stronger governance, and better coordination across government and industry. I would add one more imperative: make reducing water demand a national priority, and empower those with the tools and insights to lead that charge. The perfect launchpad for this is already established. Fortunately, the foundations are already in place. Ofwat’s £100 million Water Efficiency Fund is set to launch, supporting two key areas: a national campaign to drive customer behaviour change and promote water efficiency in businesses, and an innovation lab to develop and scale new technologies.

What Comes Next

Adaptation cannot wait. As the climate becomes more uncertain, our approach to water management must become more intelligent, integrated, and inclusive. Demand is dynamic, and we have the power to shape it through policy and behaviour.

The question is no longer whether we need to adapt, but whether we are willing to lead.

By Victoria Nevin

Victoria Nevin is Head of Product Implementation at Skewb. To speak with her about this topic in more detail, you can connect with her on LinkedIn.