Rainwater harvesting, the use of grey water in homes and an urgent campaign to reduce water usage across society are vital to prevent water shortages of 5bn litres a day by 2055, the government has been told.

Without intervention, England will face severe water shortages in the coming decades, as climate change-induced weather patterns, population growth and the expansion of industries such as water-intensive datacentres put excessive demand on supplies and endanger life, according to a House of Lords report published on Thursday.

Peers on the Environment and Climate Change Committee said without urgent action, the country would face daily water shortfalls of 5bn litres a day – equivalent to 2,000 Olympic-sized pools of water each day.

Last year the driest spring for 132 years led to prolonged drought across England. The government’s climate advisers warned in a major report that drought would become more frequent as a result of global heating and more reservoirs must also be built to avoid the risk of the taps running dry.

Shas Sheehan, the chair of the Lords committee, said: “Climate change is increasing the risk of drought through a combination of hotter summers and heavier winter rains making the capture and storage of rainwater increasingly important.

“The experience of the 2025 drought sent a warning signal to the water and drought management system. We have already had a dry start to this spring, so it is critical that action is taken now to prepare for serious drought conditions, particularly as we enter a reported El Niño year.”

The report by the committee said more effective management of rainfall was needed, through better storage, supply and reuse. It called for:

• Changes to building regulations to require new homes to achieve a maximum water usage of 105 litres a person a day and accelerated grey water reuse.

• Nature-based solutions such as restoring peat bogs and reconnecting rivers to their natural flood plains to enhance water retention.

• An urgent awareness campaign for the whole of society to reduce water usage.

• A full environmental and economic assessment of drought to weigh the cost of inaction against the value of resilience.

• The rolling out of nature-based solutions more widely in urban and rural settings.

No new reservoirs have been built in England by water companies for more than 30 years. Nine are now planned, but the report warned they would take many years to come online and should not be seen as an alternative to urgent action to reduce water demand.

Leaks from pipework – owned mostly by water companies – accounted for 19% of water demand, the report said. “Action to reduce leakage must remain a priority for the government, as water lost through leakage undermines public support for other drought mitigation measures,” it said.

“Drought is an ever-present threat which may feel dormant in winter but looms large in the summer,” peers said. “Water is the foundation of life itself; the government must act now to secure England’s most vital resource for the future.”