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Government under fire as flood insurance deal extended

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AN existing deal providing flood insurance to vulnerable county households has been extended by a month to allow talks for a long-awaited replacement to go on.

The announcement came in the face of a looming deadline with the current arrangement, known as the Statement of Principles, set to end in in June.

This has now been extended by the insurance industry to the end of July to allow for outstanding "important issues" to be resolved.

The Government has been warned homeowners could find it difficult to get mortgages or sell their properties if an agreement on providing a future safety net cannot be reached.

Tackled over the flood insurance deal in the Commons, Environment Secretary Owen Paterson said: "We are aiming to conclude negotiations as soon as possible to ensure that households can continue to access affordable flood insurance."

But former Labour Environment Minister Ben Bradshaw said: "A one month extension is simply not good enough.

"The Government has had three years to sort this problem out."


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