The Government has announced a new formula for allocating funding for flood and coastal defences across England.

In a move that will be welcomed by many, Ministers have decided to make a number of changes to improve the way government funding is allocated to flood risk management schemes. This includes a recognition of the wider benefits that flood alleviation projects can bring.

Defra and the Environment Agency have also published new guidance on partnership funding for flood and coastal erosion risk management (FCERM), to reflect these changes.

The changes that Defra have announced are based on the feedback we have had over the current 6-year FCERM capital investment programme, which will end in April 2021, including through informal consultation.

The changes are:

• updated payment rates to reflect inflation and new evidence on flood damages since 2011 (including people impacts such as mental health)
• a new intermediate risk band for moving properties and other assets between high and medium risk to help manage surface water flood risk – meaning more surface water schemes are likely to receive Defra grant in the future
• improved payment rates for environmental benefits to better capture the wider environmental benefits achieved by some flood schemes and encourage environmentally beneficial design
• recognition of the benefits for properties that will become at risk in the lifetime of flood defences due to the impacts of climate change

Additional funding streams will also mean:

• more money for flood risk management schemes that help to protect critical infrastructure such as schools, hospitals, roads and railways
• more money to upgrade existing Environment Agency flood risk assets

The new guidance includes updated:

• operational principles on how government grant will be invested
• partnership funding calculator and associated guidance
• guidance on maximising environmental outcomes

A note on transitional arrangements explains how Defra will manage the change to the new approach.

Later this year, Defra will launch a public consultation on floods funding policy to gather insights from across the country. These views will help to further develop its FCERM funding vision for the future. More information on the consultation and details of how you can take part will be made available in due course.

Also on flooding, Public Health England recently updated the evidence base on the impact of flooding on health and wellbeing.