The UK government’s pledge to spend £7.9 billion ($16.46 billion) on flood defences over a decade has been welcomed by the Association of British Insurers.

More than 6 million homes and businesses in England are at risk from flooding, the nation’s Environment Agency estimates.  

As previously reported, the UK had vowed to spend £4.2 billion ($8.72 billion) over three years to mid-2029 to build and maintain flood defences.  

Now the government says it is “providing certainty over the budget for flood defences by committing £7.9 billion of capital ... benefiting about 840,000 properties by 2035-36. This program will launch in April 2026 ... it will integrate routine maintenance for flood defence assets and the delivery of new projects into one single investment framework.”

ABI director general Hannah Gurga says the commitment to more funding and a long-term framework is “a welcome relief ... and marks a crucial step in our race to adapt to a changing climate. Robust investment in defences and a clear, enduring strategy are vital to real, lasting resilience.”

UK Environment Secretary Steve Reed says the “largest flooding program in our country’s history” will protect homes, small businesses and infrastructure, supporting initiatives including high-performance barriers and wetland restoration.  

Every pound spent on flood defences is expected to prevent around £8 in economic damage.

Ms Gurga says the government should also consider where and how new homes are built to avoid or withstand flooding, extreme heat, stronger winds and subsidence.  

“Only through sustained investment and proactive planning can we mitigate future risks and safeguard our communities against escalating climate threats,” she said.  

In Australia, the Insurance Council has recommended that a $30.15 billion flood defence fund be established over a decade by the federal, NSW, Victorian and Queensland governments. It also wants a dedicated flood defence minister.

From the latest Insurance News magazine: Could expansion of the home loan guarantee scheme threaten the financial system?