Asked by: Charlie Maynard (Liberal Democrat - Witney)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, whether she has had recent discussions with (a) Ofwat and (b) Thames Water on the potential merits of issuing penalties to Thames Water for alleged breaches of its license agreement in the context of its investment grade credit ratings.
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
The enforcement of licence conditions is a matter for Ofwat as the independent economic regulator. To remedy its licence breach in losing its investment grade credit ratings in 2024, Ofwat has confirmed it accepted an enforcement undertaking from Thames Water in August 2024 (Ofwat confirms actions for Thames Water following investment credit rating downgrade - Ofwat). These commitments will remain in place until the company regains two investment grade credit ratings.
Asked by: Charlie Maynard (Liberal Democrat - Witney)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what recent assessment she has made of the potential implications for her policies of the financial stability of Thames Water.
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
The water white paper published on the 20 January sets out the Government’s plans to reform the water sector and the wider water system. It will create a new regulator with powers to prevent companies from accumulating unmanageable debts and to ensure the sector as a whole is financially resilient.
Asked by: Charlie Maynard (Liberal Democrat - Witney)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, how many new properties were covered by FloodRe in the last twelve months.
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
In 2024/25, Flood Re provided cover for over 346,000 household policies. Of these, 30% of the policies ceded to Flood Re in the financial year to 31 March 2025 had not previously been ceded to the Scheme. In total, 650,000 properties have benefited since the scheme’s launch. Flood Re publish these figures annually in their annual report.
Asked by: Charlie Maynard (Liberal Democrat - Witney)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, how many properties are covered by FloodRe.
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
In 2024/25, Flood Re provided cover for over 346,000 household policies. Of these, 30% of the policies ceded to Flood Re in the financial year to 31 March 2025 had not previously been ceded to the Scheme. In total, 650,000 properties have benefited since the scheme’s launch. Flood Re publish these figures annually in their annual report.
Asked by: Charlie Maynard (Liberal Democrat - Witney)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, whether she can disclose how much additional risk the Flood Re scheme is underwriting this year than it was when it launched; and whether she holds any information about the sustainability of those trendlines through to 2039.
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
In its first operational year (2016/17), the Flood Re scheme’s Liability Limit was £2.1 billion and 127,326 policies were ceded to the scheme. By 2024/25, 346,200 policies were ceded and from 1 April 2025, the Liability Limit reset to £3.2 billion for three years, with annual Consumer Price Index adjustments thereafter.
The Liability Limit is set for successive three-year periods and reviewed ongoingly by the Scheme Administrator, Flood Re Ltd, to ensure alignment with the Flood Reinsurance (Scheme and Scheme Administrator Designation) Regulations 2015. Flood Re Ltd monitors risk exposure and sustainability as part of its statutory obligations. Its future trajectory, including sustainability through to 2039, is based on ceding forecasts, their risk levels and a prudent margin for uncertainty.
Flood Re must also publish a Transition Plan every five years, outlining how it will move towards a market with affordable flood insurance without the need for the scheme after 2039.
Asked by: Charlie Maynard (Liberal Democrat - Witney)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what information her Department holds on the reasons for households not obtaining insurance for flooding in spite of being eligible for the Flood Re scheme; and if she will call on Flood Re to clarify why such cases are occurring in Witney constituency.
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
Flood Re is a joint Government-industry scheme enabling high flood risk households to access affordable insurance. Since launch, Flood Re has supported more than 650,000 households, with 346,000 policies ceded to them in 2024/25.
Prior to Flood Re’s inception, the average home insurance quote for a householder with a flood claim was about £4,400. As of December 2024, the average was c. £1,100, with 99% of householders at high risk of flooding now able to obtain quotes from 10 or more insurers.
The decision to insure a property, and/or to cede a policy to Flood Re is a decision made by each insurance company, but all households eligible under the Flood Re Scheme should be able to access to flood insurance cover. It remains important that policy holders shop around for an insurer to find the most suitable policy for their needs as individual insurers will consider a range of factors in setting their premiums.
Defra continues working with Flood Re and insurers to monitor affordability, and have not been made aware of any Flood Re eligible properties being refused flood cover on an industry wide basis.
Asked by: Charlie Maynard (Liberal Democrat - Witney)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, whether she plans to publish guidance setting out how non-financial factors, such as environmental performance or repeated regulatory breaches, will be considered when determining whether to trigger special administration of a water company.
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
I refer the hon. Member to the answer given on 19 November 2025 to the hon. Member for Witney, UIN 90063.
Asked by: Charlie Maynard (Liberal Democrat - Witney)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of the potential merits of publishing criteria, thresholds and circumstances under which the Water Industry Special Administration Regime may be triggered.
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
I refer the hon. Member to the answer given on 19 November 2025 to the hon. Member for Witney, UIN 90063.
Asked by: Charlie Maynard (Liberal Democrat - Witney)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what steps she is taking to ensure that public, environmental and customer interests are considered in future uses of the Special Administration Regime for struggling utilities.
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
I refer the hon. Member to the answer given on 19 November 2025 to the hon. Member for Witney, UIN 90065.
Asked by: Charlie Maynard (Liberal Democrat - Witney)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what discussions she has had with Ofwat on the adequacy of Thames Water’s compliance with its environmental and financial obligations under its operating licence; and whether Thames Water's performance meets any threshold for intervention under the Special Administration Regime (SAR).
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
Special administration is the ultimate enforcement tool in Ofwat’s regulatory toolkit, and as such the bar is set high. In determining whether to apply to the court for a Special Administration Regime, the Secretary of State would have regard to all the relevant facts and matters pertaining at the time, acting in accordance with applicable statutory duties.