Climate Change: Housing Insurability, Mortgage Lending and Financial Resilience

Lord Bishop of Manchester Excerpts

Monday 13th July 2026 Lords Chamber

[Lord Livermore (Lab)]

As I said, the Climate Change Committee has assessed that the insurance gap is currently low relative to most countries. Flood risk, though, is the most immediate concern for UK households. The Environment Agency’s latest flood risk assessment indicated that around 6.3 million properties in England are at risk of flooding, increasing to 8 million as a result of climate change. The Government are working with Flood Re to ensure the scheme remains effective and financially sustainable through to its planned end date of 2039, and discussions are ongoing to understand and tackle the medium-term pressures.

[The Lord Bishop of Manchester]

My Lords, yesterday the Church of England General Synod reaffirmed its commitment to net zero. Back when we were first looking into that, I remember sitting down with the chief executive of one of the world’s largest insurance companies and asking him why he was so interested in climate change. He said that extreme weather events are the biggest risk for insurance companies. Does the Minister agree with me that if we are going to make insurance affordable, we have to reduce extreme weather events? It is not about adapting; it is about getting down to net zero.

[Lord Livermore (Lab)]

With the greatest respect, I think it might be both. We have to adapt and take long-term action to get down to net zero, as the right reverend Prelate says. I agree on both points.