Flood Insurance: Reform of Flood Re

Debate between Paula Barker and Emma Hardy

Wednesday 1st July 2026 Commons Chamber

[Emma Hardy]

I thank the hon. Gentleman, and I recognise his commitment to flood protection. He referenced our meeting, at which we discussed the £50 million that we are putting into Somerset because of its particular landscape and challenges. He is right to highlight the accounts that Flood Re has produced; without reform or change, we would be in a poor situation. Flood Re has been an amazing success, but to continue for the next 10 years, it needs to change. That is why we are introducing the changes that I have mentioned: targeting those who most need support by introducing a cap, making contents cover cheaper for lower council tax bands, and the work on the premium model. One of the other changes, which is probably not as eye-catching, is allowing Flood Re access to some of its trapped capital to make reinsurance costs cheaper. All of the reforms that Flood Re is introducing are intended to ensure that it is sustainable and keeps going.

Turning to continued support for flood protection, the hon. Gentleman will know that we have put the most money into flood protection of any Government ever, with £10.5 billion committed for the next 10 years. There are no current plans to include businesses because, as I said, Flood Re works by levying every insurance company; if we were to include businesses, we would be levying every business in the country to pay for it. For people in the top council tax bands, we are looking at flood performance certificates, so that if they can take action to improve the resilience of their home, that will be reflected in their premiums. We are doing some pilots, and I have been pushing insurance companies and others to get those pilots out the door as quickly as possible. We are not just looking at the top council tax bands; we are also looking at people in social housing to see how flood performance certificates could work.

As for when these changes are going to take place, contents insurance changes will take effect from 2027, but the cap will be from 2028. Up until that period, Flood Re will be carrying out extensive engagement with insurers and other people to make sure they are setting affordable limits. This is all about ensuring that Flood Re is there for the next 10 years.

[Paula Barker (Liverpool Wavertree) (Lab)]

I thank the Minister for her statement. The vital importance of protecting and insuring people against flooding is highlighted by the case of my constituents who live next to Thingwall allotments, where extensive surface water flooding has blighted their lives for four years. Residents of Abbeystead Road have been forced to continually use flood sacks, sandbags and pumps to protect their homes, and gardens have become unusable. I am particularly concerned about the welfare of elderly constituents in poor health and families with children. Despite my representations over the past four years, Liverpool city council and United Utilities have not resolved the issue; instead, the council is sending tankers to pump out the water, at what must be considerable cost. I have written to the Minister, and although I know she is extremely busy, will she meet me, residents, Liverpool city council and United Utilities to find a resolution once and for all?

[Emma Hardy]

My hon. Friend is right to highlight how difficult it is for people to continually have to take action, especially elderly people, as well as the mental health impact of thinking they are going to have to do something to try to protect their home every time it rains. I would be happy to help convene a meeting with all the relevant parties.

Water Companies

Debate between Paula Barker and Emma Hardy

Monday 8th June 2026 Commons Chamber

[Emma Hardy]

This point came up repeatedly during the passage of the Water (Special Measures) Act 2025 and, fundamentally, my response remains the same, which is that the cost and time spent on installing monitors could be more effectively spent and used to prevent this from happening in the first place. That is why we want to focus on delivering the storm overflow reduction plan, which is looking to deliver £60 billion of investment across England by 2050 to reduce the number of overflows. Rather than trying to measure the problem, we are trying to tackle it.

[Paula Barker (Liverpool Wavertree) (Lab)]

Several barriers to taking water back into public ownership have been floated—pardon the pun—but the myth around the cost has been debunked and the impact on pensions has been dealt with by leading academics. What will it take for the Government to take water back into public ownership?

[Emma Hardy]

I know how much my hon. Friend cares about this issue, and she is right to highlight the concerns of some unions about changes. On nationalisation, as I have already mentioned, the White Paper contains a process by which different forms of ownership can be looked at, but—I do not wish to mislead my hon. Friend—that would involve looking at not-for-profits and mutuals rather than nationalisation.