Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what explicit monetary value his Department assigns to the value of preventing a fatality calculation during the process of policy appraisal and evaluation.

The Department uses the methodology most appropriate to the policy question – for example, whether the policy reduces the risk of a sudden loss of life or whether the policy increases life expectancy.

Air quality affects people's health and their life expectancy, this is reflected in policy appraisal with a ‘lost life years' methodology employing a value of £29,000 per year of lost life (in 2004 prices). This figure was informed by a 2004 Defra report entitled Valuation of Health Benefits Associated with Reduction in Air Pollution available here http://archive.defra.gov.uk/environment/quality/air/airquality/publications/healthbenefits/airpollution_reduction.pdf). The 2004 study did not directly give the £29,000 figure but was instrumental in its adoption.

Alternatively, appraisal of policy that prevents sudden loss of life, such as those relating to flood risk, is supported by published Defra guidance on risk to life of flooding which we provide a copy of. This guidance refers to the Green Book which includes a value of preventing fatality of about £1.145million (in 2000 prices). This estimate is not appropriate in all situations but represents a readily available value of changes in risks of fatalities

The methodology used by the Department is likely to evolve over time as new evidence is developed.

Documents provided:

Defra, May 2008. Supplementary Note to Operating Authorities, Assessing and Valuing the Risk to Life from Flooding for use in Appraisal of Risk Management Measures.