Water Companies: Executive Bonuses

Debate between Rebecca Pow and Jesse Norman

Tuesday 5th December 2023 Commons Chamber

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Rebecca Pow)]

I would like to thank the hon. Member for Croydon North (Steve Reed) for raising this important issue. As I have said constantly, all sewage in our waterways is completely and utterly unacceptable. I am pleased to have this opportunity to put on record the huge strides that we have made to deliver clean water for customers and the environment. We are the party for nature. We are the party that brought forward the Environment Act 2021, although many of the measures in it were not supported by Opposition Members. It is a globally leading piece of legislation. If the hon. Gentleman went out on to the global stage, he would realise that we are revered for it, and we now have the whole framework in place to deliver what it states. There are many measures in it to tackle water.

I am genuinely proud to have instigated and driven through our plan for water, which was supported by hundreds of people. It had a huge amount of expertise put into it to deliver it, and we are delivering it. It sets out a genuinely holistic plan to deliver more investment, stronger regulation and tougher enforcement, and make no mistake, it is cross-party. I would like to make the hon. Gentleman an offer. Would he like me to give him a copy, because I am not sure that he has actually looked at it? I would be happy to do that after the debate.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

My hon. Friend mentions the plan for water, but she will be aware that the previous Secretary of State came to Herefordshire, where she attended a roundtable in Hereford and promised that a plan for the River Wye would be brought to us by 15 September, three months after that meeting. We have yet to see it. I have to say, on behalf of the people of my county, that we are starting to run out of patience. When can we expect this plan to come through?

Draft Flood Reinsurance (Amendment) Regulations 2022

Debate between Rebecca Pow and Jesse Norman

Wednesday 9th March 2022 General Committees

[Rebecca Pow]

I thank Members for all their comments on the statutory instrument. Of course, flooding affects so many of us. I come from Somerset, and we have had to deal with very serious flooding over the years, including just before I arrived in Parliament. It has to be said that the Government, with their funding, have really helped us to address that down in Somerset.

I thank the shadow Minister, the hon. Member for Leeds North West, for his support for the SI. I know that he has some knowledge of flooding in his constituency. He raised some very valid questions. He asked whether the scheme should not be made compulsory for all insurers. In the approach that we are taking, we are trying to encourage a cultural shift in the insurance industry. We have done a huge amount of engagement. Insurance companies are very pro what we have brought forward, and many are already taking the scheme on board; they are either getting it in writing or just about to start offering it anyway once the SI goes through.

We are optimistic that the scheme will be very widely picked up, and that it will have a really positive impact on supply chains, awareness and demand. Once one lot of insurance companies start offering it, we anticipate that the majority will take it up. That is why we are confident that introducing it on a voluntary basis is what we need to achieve what we are hoping to achieve, which is basically more people being more sure of their property’s flood resilience and being able to get hold of the right money to build back better—to put their houses back in a better state than they were.

At the moment, as I said, houses are often just reinstated as they were. It is awful to think that one might flood again, but in some areas people have to be mindful of that. Therefore, putting down tiles or waterproof plasterboard—you can get that now, Mr Robertson—rather than carpets might make full sense, but it might cost more; that is why this extra bit of funding will be really helpful. We are fully optimistic that we have the necessary measures in place. I hope that gives the hon. Member some reassurance.

The hon. Member also asked about landlords and tenants. All types of landlord insurance are classified by the insurance industry as commercial business insurance, since such insurance, including for larger leasehold premises, is often bespoke. However, leasehold properties consisting of three or fewer blocks, where the freeholder him or herself lives in the block, are eligible for Flood Re, and tenants and leaseholders are able to obtain contents insurance supported by Flood Re regardless of the size of the block. A number of insurers also offer solutions to those struggling to access flood insurance, including parametric insurance and a scheme that amends a lease for the remaining lifetime of Flood Re to allow the individual leaseholders in a block to insure their individual flats. Quite a lot of thinking has gone into that, and quite a number of tenants and leaseholders are covered.

Following the 2019 flooding, the Government commissioned an independent review of flood insurance in Doncaster, which the hon. Member might remember. Following that report, we are taking forward action, which includes repeating some research into the availability and affordability of flood insurance, because there was a small group of people, which included some tenants, that still fell out of getting cover. Work is continuing on that.

We have also been working with the insurance industry to set up a new flood insurance directory, to which customers can be signposted by insurers and brokers when they themselves cannot offer flood cover. The directory, which has recently been launched, aims to reduce the number of policies sold with flood exclusions and drive uptake of suitable flood cover. The directory can be found on the British Insurance Brokers’ Association website. I hope that gives some reassurance.

The hon. Member mentioned farming and farmers. What happens to farmers when their land gets flooded has been raised with me many times. Farmers have to work with temporary flooding in many areas—that probably applies to your area around Tewkesbury, Mr Robertson—but there are issues when the water stays longer on the land. A lot of new schemes, particularly the environmental land management scheme, give particular mention to working with farmers to take water in flood-risk areas. It is a changing landscape for farmers, but we are very aware of that particular issue, especially as we are going to get more extreme weather events. Whatever we do about climate change—and we have to do everything we can to tackle it—we still have to adapt, and many of our policies are working towards that.

I thank all hon. Members for their comments. I thank the Scottish shadow Minister, the hon. Member for Gordon, for welcoming the policies. We were very pleased to work with the devolveds on this, because there was all-round support.

My right hon. Friend the Member for Hereford and South Herefordshire is a great advocate for the River Wye. As he knows, I made a visit to look at what is going on there. We are doing so much work now to tackle the issue of pollution in his area, but, as he says, there have also been flooding issues. I will write to him on his point about the road, as it comes under the remit of the Department for Transport and is linked to its road investment strategy.

It is important to address how we tackle the flooding of wider infrastructure. We are at pains to work even more closely on flooding with all other Departments. When we allocate our flood funding money—it is a huge budget worth £5.2 billion of investment—we can get an awful lot of wider spin-offs if we work with other Departments. There are benefits if we tackle the issue effectively. There are huge benefits for the economy from sorting out the flood risk for businesses.

[Jesse Norman]

I perfectly understand that the Minister will write to me, including in relation to DFT, and I am of course happy with that. This bears on DEFRA because there is a hole in the Bellwin approach that has the effect of not providing funding to address the catastrophic destruction of roads, and that cannot be remedied by small authorities that simply do not have the funds to address such large-scale devastation. That is the problem. I would be grateful if the Minister could look at that in her response.

[Rebecca Pow]

The Bellwin scheme comes under the Department for Levelling Up, Housing and Communities. Although I am the floods Minister, there is only one significant fund that comes under DEFRA, and that is for farmland. That is why we have to work with other Departments. The Bellwin fund is very much for local authorities to cover the urgent and drastic clean-up required after a flood. I will write to my right hon. Friend on the issue of flooding on the roads, but I take his point.

I thank my hon. Friend the Member for Shrewsbury and Atcham, who talks to me regularly and is a massive advocate for his constituency. I am sorry that it has had flooding recently. He knows that there are schemes under way, and we are going to have a meeting about some additional ones. I welcome his work chairing the partnership of 45 MPs who represent constituencies up and down our enormous and important River Severn. He will know that we have recently given funding to do some much wider, innovative and creative thinking about how to tackle flooding right up and down the whole catchment. Some pilots have already started. A lot of that involves nature-based solutions, as well as hard flood defences and so on. It also involves speaking with our devolved colleagues in Wales. I am really working hard on that, because the river does of course have two sides—in England and in Wales.