Policy Insights

Wanted: creative solutions to complex problems

To bolster future water supply and counter climate and population pressures, bravery must trump risk aversion

November 10, 2026
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Image courtesy Southern Water

When assessing the likelihood of a future water supply crisis, consider that without urgent action England alone faces an estimated five-billion-litres-a-day shortfall of public water supplies by 2055. The UK government acknowledged the scale of the challenge in its most recent white paper, promising a “once-in-a-generation plan to transform the water system for good”. But what does that mean in practice? And how can the nation secure reliable, sustainable water supplies under growing climate andpopulation pressures?

An expert roundtable—convened in January and hosted by Prospect with support from Southern Water—sought to provide some answers. Participants were asked to consider both supply- and demand-side measures—the former including the introduction of new reservoirs, pipelines, desalination and recycling; the latter including measures such as leakage reduction, smart metering and behavioural change.

 

Supply and demand levers

On getting the necessary equilibrium between supply and demand, most participants recommended taking an agile approach. “The demand- and supply-side balance is not static”, noted one participant. This, in turn, influences, the measures taken. For example, in communities where the majority of households are unmetered, encouraging changes in behaviour is more difficult when compared to areas where consumers can identify potential cost savings.

Agility might also mean “creativity” in place of “risk aversion” (others called for “bravery”). For example, given that 1 per cent of businesses in England account for 15 per cent of all water use, bespoke site-based solutions should be considered for those organisations likely to consume most. Elsewhere, creativity is required for a nation that is “really bad at capturing rain water”.

Alongside creative solutions, investment remains essential, especially for an industry still relying on old infrastructure where some 60 per cent of water mains were built before 1981, and 13 per cent are over 100 years old. That’s why £104bn of private investment was universally welcomed among roundtable participants.

 

Relationship building

Elsewhere, there were pleas for improved consumer engagement and better communication that echoed through the 90-minute discussion. “Building back trust with the public is absolutely critical”, said one participant. It matters if policymakers hope to inspire consumer behavioural change. And it matters if new talent is to be recruited into the industry (more of which later). To this end, key relationships need to be bolstered—relationships between government and the industry, and between the industry and its investors.

Others insisted that industry needs to better amplify the voice of a “silent majority of customers who appreciate the challenges we face and the value of service that they get”. And to embed greater consumer engagement, it’s time to ditch the “leaflet with a bill” form of communication in favour of national or regional advertising campaigns—underscored with a dose of humour—that have worked so well in Denver (“Use only what you need”) and in Sydney (“Turn it off, Bob”).

 

Talent recruitment and retention

Roundtable participants also urged more thought to be given in encouraging new and larger pools of talent into the industry. This requires not only enticing newly-skilled staff but making efforts to retain an existing workforce as experienced scientists, engineers and other skilled professionals enter the final years of their careers. One estimate suggests 16 per cent of the water industry workforce are set to retire by 2030. That equates to 13,700 people and a substantive loss of institutional knowledge.

Another form of talent leakage is those who are trained by the industry—from graduate level upwards—only to move to other sectors early or midway through their careers. With a nod to improved communications, there’s a fear that a future workforce is dissuaded from entering the industry because of the negative perceptions that exist outside of the industry. To counter this perception requires “more noise”—noise directed at potential talent but also directed at policymakers, too. As one Westminster insider noted: “I’ve not once heard anybody talk to me about the water industry and its skills shortage”.

 

Future regulation

One practical change, reflected in the government’s water white paper, is the introduction of a single industry regulator. The rationale? To provide an integrated view of economic and environmental performance. While some suggested that a range of regulators, as currently exists, allows for “creative tension”, most agreed that over time the array of industry overseers has led to “entrenched” positions and, ultimately, “dysfunction”.

Water Supply Resilience, a roundtable jointly hosted by Prospect and Southern Water, took place on 21st January 2026


The challenge of securing water for the future is not new, but it is now more urgent, more visible and more complex than at any point in recent memory. As highlighted in the accompanying resilience discussion note, the sector operates under heightened scrutiny, rising expectations and increasingly acute environmental and operational pressures.

The discussion on “securing water for the future” reinforces a central truth. Resilience is not a single outcome, but a set of choices. These choices span the level of resilience we aim to provide, how we deliver it, the pace at which we act, the confidence we can place in our solutions and the cost to customers and society. Each dimension is interdependent, and progress in one cannot be achieved sustainably without careful consideration of the others.

What emerges is the need for alignment. Without a shared understanding across regulators, companies, investors and customers, there is a real risk of incrementalism, making marginal improvements rather than delivering the systemic change required. Securing long-term water resilience demands consensus, clarity and collective commitment.

Encouragingly, the discussion also demonstrates that capability and intent exist across the sector. By working collaboratively, embracing innovation, and being transparent about trade-offs, we can move beyond short-term fixes and build a resilient, trusted, and future-ready water system. This foreword sets the context for that shared endeavour; one that must balance ambition with realism, and urgency with confidence in delivery.

Chris Offer
Strategy and regulation director, Southern Water