- Reforms restore fairness, ensuring low- and middle-income households are no longer subsidising the most expensive homes
- Contents insurance cut to £25 a year for millions of households in council tax Bands A and B
- New measures to boost resilience, including Flood Performance Certificates and stronger “Build Back Better” support
Families across England – including in Portsmouth – will benefit from cheaper and fairer flood insurance as the Government reforms the Flood Re scheme to better target support at those who need it most.
Flood Re, a joint Government and insurance industry scheme, has helped ensure affordable flood insurance for households at highest risk since 2016. Today’s reforms will build on that success by updating the scheme to reflect rising flood risk and the growing impact of climate change.
As part of the changes, contents-only insurance for households in Bands A and B will be reduced to £25 a year from April 2027, helping families protect the things that matter most and easing cost-of-living pressures.
The reforms will also end the current unfairness where ordinary households subsidise the most expensive properties, ensuring support is properly focused on low- and middle-income families.
Alongside this, new measures will shift the system towards prevention as well as protection. Flood Performance Certificates will give households clearer information about their flood risk, while strengthened Build Back Better measures will allow homeowners to access up to £10,000 to improve resilience when repairing flood damage.
The reforms will maintain access to insurance for all eligible homes while improving the long-term sustainability of the scheme through to 2039, including the introduction of a cap on claims.
These changes sit alongside record Government investment in flood defences, including £1.4 billion next year alone, as part of the largest flood resilience programme in the country’s history.
Commenting, Stephen Morgan, MP for Portsmouth South, said:
“Flooding has a real impact on families and businesses in Portsmouth, so ensuring people can access affordable insurance is absolutely vital.
“These reforms will make a meaningful difference – cutting costs for households, restoring fairness, and helping communities better protect themselves against future flooding.
“I will continue working with the Government and local partners to ensure Portsmouth gets the support it needs to stay resilient.”
Floods Minister Emma Hardy MP said:
“Flooding is truly devastating, turning lives upside down and leaving families facing enormous uncertainty – making access to affordable insurance even more vital.
“Over the past decade, Flood Re has transformed that access. Before, many faced unaffordable premiums or could not secure insurance at all, but thanks to this initiative access is now universal, even in the highest-risk areas.
“Under these new reforms, this government is working with Flood Re and industry to further evolve our approach. By reducing premiums and making wider changes we will ensure that, in its second decade, the scheme is better targeted to support fairness and ensure more low-income households get the support they need.”
