Flood Reinsurance (Amendment) Regulations 2025

Debate between Baroness Bakewell of Hardington Mandeville and Baroness McIntosh of Pickering

Monday 10th March 2025 Grand Committee

[Baroness McIntosh of Pickering (Con)]

My Lords, I thank the Minister and congratulate her on bringing this instrument forward, which I wholeheartedly support. I want to press her on a number of issues arising from it.

In the last Parliament, the Minister had the grace and good sense to support an amendment of mine to what is now the levelling-up Act. It stated that there should be no homes at all built on functional flood plains after 2009. As the Minister will be aware, and as this instrument states, there is no insurance cover for homes built on functional flood plains after 2009.

At the time, I was delighted that Flood Re was set up, with the support of the present Government, by the then Conservative Government. However, the mapping is not as tight as it might be. As we discussed during the passage of the levelling-up Bill, we are dependent on local authorities to home in on the crucial area of zone 3b. If the Minister and her Government are committed, as they seem to be, to continuing to build on functional flood plains, which we recognise are not covered by Flood Re, can she tell the Grand Committee the average cost of insurance for those home owners to insure themselves, particularly where they may have been flooded on one or more occasion since they moved into a home which was built after 2009?

I believe that we should look at this in the context of Flood Re and the housebuilding programme. I know the Minister will probably tell me that I must be patient and wait for the planning and infrastructure Bill to come out—perhaps she could give us a date for when to expect it. That is my first and key point: what insurance cover there is, the cost for individual households and to what extent they might benefit.

Has the department done an impact assessment on the instrument as it stands? Is the Minister able to say what plans the Government have to extend the scheme in a number of ways—first, to cover homes built on flood plains after 2009 going forward, but also to extend it to cover businesses in particular? I am not entirely sure what the position is as regards farms, which are partly a business and partly a residence, but there are other businesses as well—many owner properties—where the business and the home are shared.

When will the Government have a view on what the future of Flood Re should look like when it reaches the end of its natural life? When this instrument was discussed in the other place, my honourable friend Dr Neil Hudson, who speaks for the party there, asked about the frequently flooded allowance, which was introduced by the last Government as a ring-fenced fund of £100 million to protect areas that had been affected by repeated flooding. Is the Minister able to say whether the Government are minded to continue that programme going forward?

I am sure that, when responding, the Minister will say that the Government have improved the resilience of properties and therefore are quite entitled to encourage local authorities to build on functional flood plains. She was, sadly, unable to attend the launch of the report by Westminster Sustainable Business Forum—Policy Connect—in which we looked at flood and coastal erosion risk management policy for the new Government. I do not know whether the Minister has had a chance to look at this, but will her department especially consider our recommendations to ensure the uptake of property flood-resilience measures, some of which come under Build Back Better, to which she referred—but they also go beyond that? Will the Government be minded to allow for the installation of both resistance and resilience measures as part of property flood-resilience schemes funded by the Environment Agency? Will she also review the eligibility criteria and distribution process for the property flood-resilience repair grant scheme to make it more widely accessible and streamlined? Further, will the Government align all property flood-resilience funding resources—including those from the Environment Agency’s property flood-resilience framework, Flood Re’s Build Back Better and Defra’s flood-resilience repair grant—to the same amount, so that all the funding resources would be aligned at £15,000, possibly as part of the forthcoming multiyear spending review? I realise that these are very technical recommendations and that the Minister may not have the answers, but they relate to the instrument and the forthcoming spending review.

Finally, the recommendation that I press to the Minister today would be to normalise the use of property flood resilience in both new and existing properties. Part C of building regulations should be updated to require the installation of basic property flood-resilience measures for properties at risk of flooding and the installation of very basic no-regret measures for all new homes, irrespective of risk.

These recommendations go to the heart of my belief that, if we continue to build properties that are not covered by Flood Re, we owe this to the people who will buy those properties. I find myself not needing a mortgage: I had sold a property, and I was in a position to have bought, and I almost did buy, a property without a mortgage—this is going back to the 2000s. No one would have told me that I could not be insured. I know the Minister will say that they can be insured, but I would be interested to know how affordable it is for these properties not covered by Flood Re and built after 2009 on flood plains. How expensive is that insurance? If the Government are going down this path, we must have more resilient houses built in those areas. That said, I welcome the opportunity to debate the instrument today. I hope it will have a fair wind and be approved.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I thank the Minister for her introduction to this short but important statutory instrument. I was assisting on the Water Bill in 2014-15 when Flood Re was first debated to provide insurance to properties that were uninsurable due to constant flooding, the main insurance companies not being willing to take any of the risks on those homes and dwellings.

This SI is quite simple: it raises the levy that insurance companies can indirectly pass on to their customers from £135 million to £160 million. The £135 million level was set in 2022, when the levy was reduced from £180 million. The Explanatory Memorandum quite rightly states the importance of not having a levy that is higher than it needs to be, but I stress that there is a danger in setting it too low.

Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024

Debate between Baroness Bakewell of Hardington Mandeville and Baroness McIntosh of Pickering

Thursday 28th November 2024 Grand Committee

[Baroness McIntosh of Pickering (Con)]

My Lords, I congratulate the Minister on and thank her for bringing forward these regulations, which I wholeheartedly support; I also thank her for her clear exposition of what they contain. I have a couple of questions.

The Minister set out the responsibilities, particularly around informing households of what they are required to do. I understand that a lot of the waste that is contaminated cannot be effectively disposed of and recycled. Does the Minister know what percentage of household waste that constitutes, including whether it has gone up or down in, say, the last five or 10 years?

I am grateful to the Wildlife and Countryside Link and the Green Alliance for the joint briefing that they have produced for our use. I am also grateful to the Minister for drawing attention to the Secondary Legislation Scrutiny Committee’s report, which gave a very helpful background.

My understanding is that the regulations relate only to recycling. I wonder why the department has focused on recycling and not reuse. I have asked on a number of occasions both the Minister and her noble friend the Minister for Energy, the noble Lord, Lord Hunt, what the Government’s policy on energy from waste is. It is a good way of using household waste that has been contaminated and cannot be reused. It also prevents it going to landfill, which I understand is where most of the waste that is not recycled will go. So it not only reduces household waste and disposes of it in an energy-efficient way; it also provides an energy stream that other countries in Europe use to great effect. My late aunt and uncle in Denmark had their household heating provided by energy from waste at a reduced rate, so there was a community interest in taking it up. I have not heard anything from the Government—either this department or the department for energy—as to their views on energy from waste.

The Minister referred to kerbside collections, the cost of which is obviously quite high. I have now lost the page but one of the figures relates to the substantial cost of kerbside collections. Is it the idea that household collections will be performed by local councils, which will be reimbursed under the regulations by the funds raised? I think that the Minister alluded to this; that would seem very sensible indeed.

With those few remarks and questions, I commend the regulations, but I am interested to know how much will go to landfill; why the Government have not looked at reuse; what the percentages are for contaminated materials that cannot be recycled; and what the Government’s views are on any residual household waste going to energy from waste plants.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I thank the Minister for her extensive introduction to this long-awaited SI. This is a complex issue; it has taken Defra and the Government since 2019 to bring it to this stage. I congratulate both of them on managing to get the devolved Administrations to sign up to more or less the same scheme, which should make things easier. I have received briefings from various producers and had face-to-face meetings for several years, and I was beginning to think that we would never get here. I am grateful to those who provided me this week with briefing material, as well as to the Secondary Legislation Scrutiny Committee for its report.

The opening section of the Explanatory Memorandum refers to implementing the “polluter pays” principle. That is to be welcomed. This is an opportunity to use the extensive powers in the Environment Act 2021 in order to implement the best environmental outcomes and to support the efficacy of reuseable packaging systems.

This SI obliges producers to provide evidence of the type of their recycling to the regulator. However, there is no information on how this is to happen, except that those manufacturers with a turnover of more than £2 million and which produce more than 50 tonnes of packaging will do this once a year. These producers will pay the fees to local authorities. Those with a smaller turnover of more than £1 million will have to report their recycling type but will not have to pay fees. There is nothing about how the information is to be collected by the manufacturer and what the format is for it to be reported.

I regret to say that this is something of a “get out of jail free” card. Defra and the Government are placing a great deal of trust in those who will pay the fee to provide the evidence of their recycling. The regulations include the principle, at Regulation 62(2)(b), that producers can offset fees for packaging that they market, as well as where they collect and recycle that packaging through self-funded initiatives.

There is a risk that producers could claim they have collected and recycled packaging when this is not the case. Research shows that 70% of soft plastic packaging waste collected by supermarkets for recycling was, in fact, incinerated. Can the Minister say why is there no standardisation of how evidence of recycling is to be provided?