Plaid Cymru’s Elin Jones AM and parliamentary canddiate Mike Parker are lobbying to ensure that householders at risk of flooding in Ceredigion get a fair deal under a new flood insurance scheme.

In Ceredigion, there are currently 1,219 properties (593 residential and 626 business) defined as being at a high risk of flooding. This makes Ceredigion 7th among Welsh local authorities in terms of numbers of at-risk premises, despite only being the 19th largest county in terms of population. ‘High risk’ is defined by Natural Resources Wales as having more than a 1 in 30 chance of flooding each year.

Many householders in Ceredigion are identified by insurers as living in flood-risk areas, and therefore find it very difficult to obtain affordable insurance.

Recently, the Association of British Insurers and the Westminster Government have been negotiating on a scheme to provide a ceiling on flooding insurance premiums. A scheme, known as ‘Flood Re’ (Flood Reinsurance), was drafted which would place a limit on how much anyone had to pay for insurance against flood damage, depending on the size of their home.

But under the original plans, Welsh homes at flood risk would have received lower subsidies than similar properties in the rest of the UK due to the different council tax bands in place. It also deemed Welsh homes in the two highest council tax bands ineligible, rather than just one band in England, meaning they would not benefit from any subsidy on their premiums or excess.

The potential impact on Wales would have meant over 20,000 homes at high flood risk in Wales – including a significant number in Ceredigion – would have paid more for their flood insurance compared with homes of equivalent value in the rest of the UK.

Elin Jones, Ceredigion’s Plaid Cymru AM, raised this unfairness with the First Minister at the National Assembly. She said,

“I’m pleased that the First Minister was able to confirm that negotiations between the Welsh and UK Governments were moving forward, and that some adjustment was required to the banding to make the scheme fair for householders in Ceredigion and elsewhere in Wales.

“This is a much-needed scheme. I know householders in many parts of Ceredigion who have great difficulty in obtaining affordable insurance. Now that the Westminster Government has been reminded that banding is different in England and Wales, I hope we can see rapid progress on putting the Flood Re scheme into action, and also greater clarity on what insurance protection will be afforded to businesses.”

Mike Parker, Plaid Cymru’s MP candidate for Ceredigion, has written to the Westminster Government urging it to ensure a fair deal for Wales. He added,

“The agreement between the Welsh and Westminster Governments that houses rated at band C or above in Wales will be moved down a band for the purposes of the Flood Re scheme is a welcome step. But we need more in-depth research on how exactly the subsidy would compare across similar types of houses.

“People are looking to the insurance industry to get its house in order on this issue. I’ll be looking to them and the Government to ensure that Wales gets a fair deal.”