Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • November 2014
11

Government auditors warn on future flood risk

Open-access content Wednesday 5th November 2014 — updated 5.13pm, Wednesday 29th April 2020

Government spending on maintenance flood defences has fallen by 6% over the last five year, ramping up the risk of future flooding, the National Audit Office said today.

2

A new report from the spending watchdog found that half of the country's flood defences - more than 1350 systems - were been maintained to a 'minimal level', warning that assets would deteriorate more quickly.

An extra £270m had been made available by the government following the winter storms in 2013, including an additional £35m for the maintenance of flood defences in 2014/15 and 2015/16. But the NAO warned that these extra funds only restored maintenance support to 2010/11 levels in cash term. In real terms, funding has declined by 6% decrease since 2010/11, despite the recent cash boost.

Without this extra emergency money, total funding for flood defences decreased by 10% in real terms, the auditors said.

The NAO warned that, as climate change increased, sustaining the current standard of flood protection would be 'challenging'. It did, however, acknowledge that the Environment Agency had improved the cost effectiveness and prioritisation of its flood risk spending.

NAO head Amyas Morse said: 'Against a background of tight resources, the agency has improved how it prioritises its spending, including on the maintenance of flood defences. On this measure the agency is achieving value for money. 

'However, if we set aside the emergency spending in response to last year's floods, and give due credit for efficiency improvements, the underlying spending on flood defences has gone down.'

Morse said the Environment Agency would need to make difficult decisions about whether to continue maintaining defences in some areas or let them lapse. This would increase both the risk of future floods and requirements for more expensive ad-hoc emergency solutions.

'The achievement of value for money in the long term remains significantly uncertain,' he added.

An Environment Agency spokesman commented: 'We are on track to reduce flood risk to 165,000 properties between 2011 and 2015 and we will continue to invest in those activities that contribute most to reduce the risk of flooding per pound of funding we receive.

'Following the 2013 spending review, we have a long-term, six-year capital settlement to continue to improve flood risk management infrastructure. This will allow us to make record levels of investment in capital projects and with this investment we aim to reduce flood risk to a further 300,000 properties.'

Responding to the report, the Association of British of Insurers said the most effective way to protect against flooding from rivers and the sea is with well-maintained defences adding that cuts in funding to look after them significantly undermined their effectiveness.

ABI assistant director of property Aidan Kerr said: 'To better protect the UK against the effects of our changing climate, the government needs to commit to funding the £500m shortfall between current spending on flood defences and what is needed, as identified by the Committee on Climate Change (CCC), and to commit to long term increases in funding for flood risk management with a focus on those areas with the highest chance of flooding.'

Last week, the CCC said the government and insurers should collaborate on a plan to reduce flood risk, after finding that the uptake of sustainable drainage systems (SuDS) in new development was low.

It said: 'The government and the insurance industry should agree a strategy for how the "Flood Re" scheme will be used to incentivise and support additional action by high risk households. This would help insurance to remain affordable as the scheme is withdrawn.'

The committee also suggested that the government should publish new flood defence funding scenarios in this year's Autumn Statement, making clear the long-term implications of current spending plans.

This article appeared in our November 2014 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

Retirement expectations gap revealed

Just 6% of people are on track to achieve the retirement they want, despite the focus on pensions following major reforms announced at this year’s Budget, according to Aegon.
Friday 14th November 2014
Open-access content
2

Aon Hewitt discusses benefit of escrow accounts

Retirement consultant Aon Hewitt is encouraging defined benefit pension schemes to consider the advantages of using escrow accounts where funds can be held by a third party to improve benefit security.
Monday 3rd November 2014
Open-access content
2

ABI medical assessment body 'will cut fraudulent insurance claims'

An insurance industry-backed body, which will randomly assign medical experts to assess soft tissue injury claims, will help reduce whiplash fraud, the Association of British Insurers has said.
Tuesday 11th November 2014
Open-access content
2

Climate change experts urge flood-risk reduction plan

The government and insurers should collaborate on a plan to reduce flood risk, the official advisory committee on climate change has said after finding that the uptake of sustainable drainage systems (SuDS) in new development was low.
Wednesday 29th October 2014
Open-access content
2

SMEs need more support with auto-enrolment

Small and micro employers with a lack of confidence in dealing with auto-enrolment need more intermediary support in 2015, new research from National Employment Savings Trust has found.
Thursday 13th November 2014
Open-access content
2

Plan to grow cyber insurance market launched

A plan to grow the cyber insurance market and improve online security for UK businesses has been unveiled by insurers and the government.
Friday 14th November 2014
Open-access content

Latest from Position

TPR publishes coronavirus guidance

The Pensions Regulator (TPR) has published guidance to help UK pension trustees, employers and administrators deal with the financial and regulatory risks posed by coronavirus.
Monday 23rd March 2020
Open-access content
2

Expert advice

This edition of the magazine focuses on data science and its applications, which will be a recurring theme for the IFoA.
Friday 28th February 2020
Open-access content
2

Tesla sparks fears of insurance market overhaul

That is according to a new report from Moody's, which highlights how Tesla has already started offering premiums that are up to 30% cheaper than those of mainstream insurers.
Friday 14th February 2020
Open-access content

Latest from Environment

rdth

Make My Money Matter's Tony Burdon on the practical power of sustainable pensions

Years working in international development showed Tony Burdon, head of Make My Money Matter, that sustainable pensions can harness trillions of pounds to build a better world – at a scale governments and charities can’t. He talks to Travis Elsum
Wednesday 1st March 2023
Open-access content
ty

Data detective

Heard about the chatbot ChatGPT? Artificial intelligence is advancing rapidly, says Arjun Brara – and could soon be used to refine ESG ratings and expose greenwashing
Wednesday 1st March 2023
Open-access content
iugu

Interview: chemist and climate expert Sir David King on how actuaries can save the Arctic

Actuaries can save the Arctic, according to esteemed chemist and climate-change expert Sir David King. He tells Alex Martin that risk management is as relevant to preserving the planet as groundbreaking science
Wednesday 1st February 2023
Open-access content

Latest from November 2014

ta

Fitch predicts more mergers in reinsurance sector

Credit ratings firm Fitch has said it expects an increase in the number of mergers in the reinsurance sector, with firms likely to look at possible acquisitions in an attempt to deal with pressures in the market.
Thursday 27th November 2014
Open-access content
2

NAPF publishes DB pensioner longevity data for the first time

The National Association of Pension Funds has today published the first ever in-depth analysis of the difference in life expectancy trends between members of defined benefit pension schemes.
Thursday 27th November 2014
Open-access content

ACA calls for overhaul of auto-enrolment thresholds

The links between auto-enrolment eligibility and thresholds for payment of income tax and National Insurance should be broken to allow more low-paid people to save for a pension, the Association of Consulting Actuaries has said.
Tuesday 25th November 2014
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 11

ta

Fitch predicts more mergers in reinsurance sector

Credit ratings firm Fitch has said it expects an increase in the number of mergers in the reinsurance sector, with firms likely to look at possible acquisitions in an attempt to deal with pressures in the market.
Thursday 27th November 2014
Open-access content
2

NAPF publishes DB pensioner longevity data for the first time

The National Association of Pension Funds has today published the first ever in-depth analysis of the difference in life expectancy trends between members of defined benefit pension schemes.
Thursday 27th November 2014
Open-access content

ACA calls for overhaul of auto-enrolment thresholds

The links between auto-enrolment eligibility and thresholds for payment of income tax and National Insurance should be broken to allow more low-paid people to save for a pension, the Association of Consulting Actuaries has said.
Tuesday 25th November 2014
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

BPA Transition Manager

London, England / Edinburgh, Scotland
£45000 - £65000 per annum + market leading bonus and benefits
Reference
148878

London Market Pricing Contracts - Inside & Outside IR35

London (Central)
£1000 - £1300 per day
Reference
148877

SME Pricing Director

London (Central), London (Greater)
£225K + bonus + benefits
Reference
148872
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ