UK needs £1bn+ annual flood defence investment to tackle climate risks, experts warn

The UK urgently needs long-term flood defence investment exceeding £1 billion per year to keep pace with climate risks, according to analysis by flood risk modelling firm Fathom, which Flood Re, a joint initiative between the UK Government and the insurance industry, commissioned.

The research has revealed that existing flood defences prevent £1.15 billion in annual flood-related damage to UK homes. This figure would reportedly surpass £2 billion if all forms of damage, including business, industrial, and agricultural losses, as well as additional costs such as alternative accommodation, were accounted for. The study also highlighted that six of the UK’s wettest years on record have occurred since 1998. Recent storms, including Babet, Ciaran, and Debi, are said to have resulted in £570 million in insurance payouts.

Dermot Kehoe, Director of Communications and Transition, Flood Re, commented, “The UK needs long-term flood defence investment of at least £1 billion a year to ensure we protect our homes and businesses from the devastation flooding brings.

“We must continue to mitigate the damage caused by flooding to ensure the insurance market has the ability to provide affordable cover to those at risk.

“Flood Re remains committed to working with Government, insurers and communities to drive forward flood resilience. By prioritising resilience alongside protection, we can build a future where homes, businesses and local economies are not just defended against flooding, but prepared to withstand and recover from it.”

As per the new research, climate change is expected to increase flood risk further, with the number of properties vulnerable to river and coastal flooding rising 27% by 2069 – from 2.4 million to 3.1 million.

Dr Oliver Wing, Chief Scientific Officer, Fathom, said, “The value of flood defences to UK households is unequivocal, saving them more than £1bn combined each year on average and up to £13bn during very severe floods.

“As our nation’s infrastructure ages, rebuild costs balloon, and climate change fuels ever more intense flood events, funding the maintenance and expansion of the UK’s flood protection systems has never been more critical.”

Hannah Gurga, Director General, of the Association of British Insurers, added, “Insurers continue to be at the forefront of climate change, paying out a record £585 million in claims last year to help households recover from extreme weather events.

“If we’re going to protect communities across the country with climate-resilient properties, we must shift from reactive and remedial action to a greater focus on prevention. Adequate and long-term Government investment in maintaining and strengthening our flood defences is essential and we hope to see the Government commit to this within its Spending Review.”

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