To ask His Majesty’s Government what outcome-based measures they use to measure the effectiveness of flooding interventions.
My Lords, properties better protected is currently our main measure for tracking the current flood investment programme. In addition, we measure asset condition. A new 10-year programme starts in April this year and will benefit 840,000 properties by 2036. Our new strategic objectives will drive funding towards the most beneficial interventions. This will be measured by a set of outcome metrics covering economic benefits and reduction in flood risk to properties.
My Lords, I thank my noble friend the Minister for her response. In October 2025, the Government committed a record £10.5 billion to flood defences to protect nearly 900,000 properties. Will the Minister tell your Lordships’ House what assessment they have made of this investment in flood defences, reducing insurance costs for those residents, bearing in mind the ever-present problem of climate change?
My noble friend is correct that we have committed a record £10.5 billion to flood defences, the reason being that flood risk is one of the factors that determine home insurance prices. Our investment programme is designed to manage flood risk by reducing it and by preventing further increases. Clearly, this can also take properties out of the need to use Flood Re for their insurance. To remind noble Lords, Flood Re is a joint government and industry flood reinsurance scheme designed to help UK households at high risk of flooding to access affordable insurance.
My Lords, one of the most efficient ways to reduce flood risk is sustainable drains. When do the Government expect to implement Schedule 3 to the Flood and Water Management Act 2010 to make sure that they will be mandatory for major new housing developments?
The noble Baroness is right that sustainable drainage is an important factor in managing flood risk. I am sure she is aware that I am personally supportive of this measure. The department is looking at it and is working with MHCLG, which, as the planning department, also has a particular interest in this. I will keep the noble Baroness up to date as we progress.
My Lords, does the Minister agree that farmers remain a critical partner to government in the fight against flooding? Will the Government therefore consider the EFRA Select Committee’s recommendation of a more comprehensive compensation strategy for farmers who store floodwater on their land to serve and protect downstream communities?
The noble Baroness is right. As someone who lives in a rural area that floods regularly, I am aware of the important role farmers play in managing flood risk and storing water on their land. Farmers can access payments in a number of ways, as I am sure the noble Baroness is aware. One is the farm recovery fund, in cases where damage has occurred and farmers need to recover costs. It pays up to £25,000 and can be important to farmers when they have suffered flooding. We are looking very carefully at the Environment Audit Committee’s recommendations in this area. Farmers storing water on their land is an important way of moving forward, and it is certainly something we are looking at.
My Lords, when Flood Re was set up, my understanding was that it was a transitional body that would no longer be necessary after a certain period, once other means of insuring homes at risk of flooding were put in place. Does Flood Re have a limited life expectancy, and if so, what is the estimate?
The noble Lord is right that Flood Re was set up for a certain period of time. I am doing this from memory, and I shall tell the House if I am wrong, but I think it was due to run through to 2036.
We are looking at possible alternative arrangements. Clearly, the last thing we want to do is take away households’ ability to have insurance. We do not want to go back to how it used to be—people being completely uninsurable or having excess limits of, say, £10,000. That is not the future we see for insurance. The noble Lord is right that it has been set up as an intermediate system, and we are looking at ways to move forward.
My Lords, the Environmental Audit Committee’s fourth report on flood resilience in England in October 2025 highlighted that Defra’s flood budget is increasingly a thin blue line protecting the nation’s transport, energy, housing and utilities from escalating flood impacts, yet it remains siloed, with no cross-government accountability for measurable outcomes or value for money. Will the Minister clarify what work the department is doing beyond using standard HM Treasury guidance to ensure value for money in flood investments?
As I mentioned earlier, we have invested a record amount of money in addressing flooding. We have also reviewed the way funding is applied and how communities, businesses and so on can apply for it. The new programme we have set up has four metrics, and if I briefly go through those, it will help to answer the noble Lord’s question.
There are two outcome metrics and two output metrics. The first outcome metric is around economic benefits. It captures all the damage that has been avoided to properties, infrastructure, agriculture and a range of other areas, as well as the positive economic benefits of such things as natural flood management, which we are very keen to invest in. The second is around the risk to properties. The Environment Agency is developing a way of reporting on the reduction in flood risk due to the investments made through the national flood and coastal investment programme. I think that is due to report in April.
The first output metric is around how properties benefit from the new investment. That is made up of three parts: whether it is large reductions in, small reductions in, or prevented increases in any size of flood risk. The last metric is around asset condition, which initially remains the percentage of Environment Agency high-consequence assets at target condition. So we have a whole new system of managing exactly those outcomes and investments.
Lord Wigley (PC)
My Lords, the Minister will be aware of the floods that occurred in Wales in recent months—in particular, the difficult ones just before Christmas in Monmouth, a border community. She may also be aware of the Written Questions I tabled on whether there is adequate co-ordination of efforts on the Welsh side and the English side of the border to minimise the danger. Can she confirm that she has had discussions with Welsh Ministers or civil servants to minimise that danger?
Absolutely. The noble Lord makes an important point: floodwater does not recognise boundaries, as I think we all know. I live in Cumbria, which, again, is a community with a border with one of the devolved nations. I meet regularly with my Welsh and Scottish counterparts, as well as those in Northern Ireland. It is important, as we make policy decisions and decide what legislation investments we are going to make, that we all work together. It is something I am very committed to.
Some floodwater is highly toxic and dangerous to humans, particularly if it comes from a sewage treatment works or from farms. What extra interventions are done on such floodwaters?
The noble Baroness is absolutely right, and it is one of the reasons why we are investing in anti-pollution measures, working with farmers, for example, to see how we can stop run-off and better manage slurry, and working with water companies. A water White Paper is coming up that will look at many of these issues. As someone who lives in a flood high-impact area, I know that the damage that can be caused by pollution is immense and is something we absolutely need to tackle.
The Duke of Wellington (CB)
My Lords, in the middle of last year the excellent report came out from the Independent Water Commission which, among other things, recommended a certain restructuring of the Environment Agency. We were promised a White Paper later last year, after that report. I wonder what has happened and whether the Minister has any idea of when the White Paper will be published.
It is very interesting that the noble Duke asks that, because I asked that question this morning. The answer is that it is being “actively worked on” at the moment.
I am giving the noble Duke the answer I was given. It is an absolute priority for the Government’s next Session to have a water Bill in place in order to have a water Act to deal with all the issues we have been discussing for so many months and years in this House. The White Paper is the first step towards that; I hope he will see it before the end of the Session.