What Is AMP8? How the UK Water Industry Is Transforming from 2025 to 2030

The UK water sector stands at a critical turning point. Pressures from climate change, stricter environmental expectations, population growth, and ageing infrastructure are mounting, and the time to act is now. This is where AMP8, the upcoming Asset Management Plan for 2025 to 2030, comes in.

If you work in or alongside the water industry, you've likely heard the term already. But AMP8 isn’t just another regulatory cycle, it’s a strategic framework that will define how water companies invest in infrastructure, innovation, and environmental improvement over the next five years. And its impact will reach far beyond utility boundaries, influencing public health, ecological resilience, and long-term climate goals across the UK.

What Does "AMP" Mean?

“AMP” stands for Asset Management Plan, a regulatory mechanism used in England and Wales to guide how water companies plan their capital and operational investments in five-year periods. AMP8 is, as the name suggests, the eighth cycle of this process, and it will run from 2025 to 2030.

Each AMP cycle is overseen by Ofwat, the Water Services Regulation Authority, which assesses company proposals, approves funding, and sets performance expectations. These plans are the foundation for how water companies maintain and upgrade their networks from pipelines and pumping stations to treatment plants and reservoirs.

But AMP8 is more than a funding exercise. It’s a blueprint for how the industry intends to confront and overcome today’s most pressing challenges.

What Makes AMP8 Different?

Every AMP cycle comes with a set of priorities, shaped by national policy, environmental needs, and evolving customer expectations. What sets AMP8 apart is the urgency of its context and the scale of ambition required to respond.

Storm overflows have dominated headlines. Rivers and coastal waters are under pressure. Customers expect more and there is more real time data available to analyse. Meanwhile, climate change is no longer a distant threat; it’s already disrupting supply and resilience.

AMP8 will place a sharp focus on:

• Reducing storm overflows and pollution events

• Improving river and coastal water quality

• Minimising water leakage and wastage

• Building resilience to droughts and floods

• Accelerating innovation and smart technologies

• Driving down emissions across water operations

These aren't just policy goals. They reflect real-world needs, backed by public demand and environmental urgency.

Who Pays for AMP8?

As with previous AMP cycles, the bulk of funding will come through customer bills, which are tightly regulated by Ofwat to ensure fairness and affordability. Water companies must demonstrate that their investment plans offer value for money, not just through immediate improvements, but through long-term cost savings and risk reduction.

In addition to customer revenue, many companies will draw on private investment, using equity or loans to finance larger projects. Government funding may also be available in areas linked to climate resilience, nature restoration, and innovation, particularly where these align with broader national strategies such as the 25 Year Environment Plan or Net Zero commitments.

Strategic Focus Areas of AMP8

Rather than treating water as a closed water company insular system, AMP8 promotes a more integrated, adaptive approach. Water is being redefined as a public good, an environmental asset, and a resource that needs careful stewardship.

That means AMP8 will prioritise:

Environmental Restoration

Reducing harmful discharges, restoring rivers, and investing in sustainable drainage systems (SuDS) are key deliverables. The aim is to protect ecosystems while improving compliance with raw water quality standards.

Resilience & Adaptation

AMP8 will drive investments that protect communities from both water scarcity and flooding, including new raw water reservoirs, upgraded drainage increasing capacity, and smarter asset planning.

Innovation

From real-time sensors to AI-powered network optimisation, digital transformation is expected to play a central role. Smart water networks, predictive maintenance, and customer-centric digital services are no longer ‘nice to have’, they’re essential.

Customer Value

Companies will need to demonstrate improvements in service delivery, transparency, and affordability. Trust in the sector is fragile; AMP8 is a chance to rebuild it.

What Will Success Look Like?

By the end of the AMP8 period, the UK water sector should be able to point to:

• Fewer storm overflows and cleaner rivers

• Lower leakage rates and higher supply security

• Visible progress toward Net Zero carbon goals

• Widespread adoption of digital water technologies

• Improved public trust and customer engagement

Crucially, AMP8 is also expected to lay the groundwork for long-term, systemic change. The sector is moving toward more nature-based solutions, stronger community partnerships, and integrated catchment management, not just fixing today’s issues, but reshaping how water is managed for generations to come.

Conclusion

AMP8 is more than a regulatory deadline. It’s a real opportunity for the UK water industry to redefine itself to prove it can deliver cleaner water, stronger infrastructure, and better value while rising to environmental and social responsibilities.

The next five years won’t just be about engineering and compliance. It will be about leadership, transparency, innovation, and building public trust.

As professionals and stakeholders across the sector, it’s essential that we not only understand AMP8 but also actively contribute to its success.

Learn More About UK Water Industry

Are you working in the water industry and want to understand more about the basics of the UK water industry? Check out our Introduction to UK Water Industry course, delivered on behalf of the Institute of Water and endorsed by CABWI. 

You can also explore all our courses here.