Businesses and households affected by winter storms are experiencing “critical gaps in emergency financial support and insurance accessibility”, a Senedd committee has warned.
A report from the Senedd’s Climate Change, Environment and Infrastructure Committee, includes testimony from residents, local authorities, and third-sector organisations.
The Committee says the report “paints a sobering picture of repeated hardship and unmet needs for communities across Wales”.
Following storms Bert and Darragh in late 2024, the Welsh Government and some local authorities issued emergency grants of £500 and £1,000 to affected households, with additional support for businesses.
However, the Climate Change, Environment and Infrastructure Committee heard repeatedly that these payments fell far short of covering the true cost of the flood damage and disruption that families and businesses faced.
Robbie Laing, a furniture shop owner in Builth Wells, described losing an estimated £15,000 in stock, earnings, and cleaning costs, saying:
“The main thing for me is not the actual flooding that’s the annoyance, it’s the weeks and months afterwards trying to get the shop back together. That’s the biggest impact – having to close to clean up.
“When I was flooded in 2020, the council made an arrangement that businesses could go to recycling centres for free, but last year…I had to pay extra out of my own pocket to dispose of thousands of pounds worth of ruined stock – a real kick in the teeth when you’re trying to get back on your feet.
“These things might not have that big an effect on big corporations who can send in professional cleaning teams but for small businesses who have to do everything themselves, it all adds up.
“I tried to look for grants or any other types of support available to me afterwards, but I couldn’t find anything at all. I still don’t know if anything was available but if it was it wasn’t publicised very well.”
Evidence compiled by the British Red Cross found that only 5% of those affected by flooding across the UK received financial support from their local council, and only 24% felt the support was adequate. Notably, 21% who reported a need for financial support received none at all.
The Committee is recommending a thorough review of the emergency funding and is urging the Welsh Government to ensure support reflects real-world costs and provides for long-term resilience, especially for those who have been hit repeatedly by such disasters.
Insurance was another area of concern for the Committee. While at-risk properties built before 2009 generally qualify for flood insurance under the UK Government’s Flood Re scheme, many residents and businesses struggled to navigate the system and access affordable cover.
Local authority representatives told the Committee that clearer, more accessible communication from both insurers and government bodies was needed for residents to better understand their rights.
For those without adequate insurance, the financial burdens of repeat flooding are overwhelming, the report found.
The Committee is urging both the Welsh and UK Governments and insurers to do more to simplify access to insurance and is calling for local authorities to strengthen their advice for affected communities.
Robbie Laing also found it frustrating to access insurance for his business. He says:
“I was given a quote for insurance that included a £10,000 excess that I would have to pay to make a claim. Being a small business with assets not far off that, and knowing that the insurance company would dispute every penny of a claim, it just wouldn’t make economic sense to go for it.”
The Committee heard that local authorities have shouldered extraordinary costs repairing and upgrading infrastructure in the wake of recent storms.
Rhondda Cynon Taf Council alone has invested over £100 million on improvements to reduce flood risk since Storm Dennis in 2020.
Despite this, particular concern was raised regarding the condition and maintenance of culverts and other drainage systems. The Committee heard that many culverts – channels for water that cross under roads and railways – are poorly maintained, difficult to access, and not designed for the enormous rainfall intensities now seen due to climate change.
It said that local authorities are hampered by limited budgets and complex ownership arrangements – many culverts cross both public and private land, with unclear responsibilities for maintenance.
The Committee is urging the Welsh Government to clarify and publicise these responsibilities, and to support a national, coordinated approach to culvert management, ensuring that infrastructure can withstand future storms.
Llyr Gruffydd MS, Chair of the Climate Change, Environment and Infrastructure Committee, said:
“The effect of last winter’s storms laid bare the reality that the current emergency support, insurance coverage, and infrastructure simply do not measure up to the scale of need in Welsh communities.
“Emergency payments have fallen far short, with some residents losing tens of thousands and many receiving little to no support. Insurance systems remain complex and inaccessible, leaving families and businesses to shoulder huge financial burdens – sometimes year after year.
“Meanwhile, local authorities are spending vast sums on repairs, yet vital culverts and drainage systems are still poorly maintained, hampered by unclear responsibilities. This causes more damage, resulting in people not only facing physical losses, but also deep mental health impacts as they rebuild, again and again.
“With climate change driving ever more extreme weather, it is essential that the Welsh Government and local authorities implement our recommendations without delay: overhaul emergency funding, clarify insurance access, improve mental health support, and create a coordinated approach to resilient infrastructure.
“Every day these reforms are not enacted, we risk exposing more communities to hardship and undermining Wales’s resilience to storms yet to come.”
