Source · Select Committees · Environment, Food and Rural Affairs Committee
Recommendation 14
14
Accepted in Part
In its response, Defra should provide a plan setting out how wider nonmonetised benefits for...
Recommendation
In its response, Defra should provide a plan setting out how wider nonmonetised benefits for coastal erosion projects will be incorporated into the reformed FCERM funding model. This plan should: 22 a. Specify the benefits to be included in the 2026 FCERM prioritisation process and provide the methodology for assessing them. b. Commission independent research to determine the health cost of coastal erosion, to ensure parity with existing flooding assessments. c. Explain how benefits that are challenging to monetise will be incorporated, including tourism, the longterm viability of coastal communities, and impacts on coastal industries such as energy. (Recommendation, Paragraph 46)
Government Response Summary
The government explains that wider non-monetised benefits, including tourism and community viability, are already incorporated into FCERM project appraisals through qualitative assessments and existing guidance. It also confirms that the Environment Agency's research team is currently undertaking independent research to assess the mental health costs of coastal erosion, with findings to be published in 2026.
Government Response
Accepted in Part
HM Government
Accepted in Part
Calculating benefits to determine value for money is the cornerstone of our approach to FCERM funding. In this context, wider benefits refer to non-flood and non-erosion benefits that arise as a by-product of increased resilience delivered through flood and coastal erosion projects, including environmental outcomes captured through natural capital, and wider social and economic benefits. These wider benefits are accounted for in the appraisal for FCERM projects. In respect of the committee’s recommendation on benefits that are challenging to monetise, these are also incorporated through appraisal and prioritisation processes that consider both monetised and non-monetised benefits when assessing overall value for money. Where benefits cannot be robustly quantified, project appraisals include a structured qualitative assessment alongside monetised impacts, enabling decision-makers to take account of their scale, distribution and relevance to place. This includes benefits associated with tourism and recreation, the long-term viability and resilience of coastal communities, and the protection of nationally and locally significant coastal industries such as energy infrastructure. The EA’s appraisal guidance and supporting tools provide a framework for identifying and evidencing these impacts, ensuring that wider social, economic and environmental outcomes are transparently reflected alongside quantified benefits when projects are prioritised for funding. In addition, the EA’s FCERM Research and Development team are currently undertaking research to assess the mental health costs of coastal erosion. The research will focus on three mental health conditions: anxiety, depression, and post-traumatic stress disorder (PTSD), and will be published later in 2026. The findings of this project can be used to inform future research.