Understanding the New 2025 FCERM Funding Policy
What It Means for Communities and Flood Resilience:
Flood risk management funding in England has been updated with the publication of the new Flood and Coastal Erosion Risk Management (FCERM) Funding Policy and supporting guidance.
The new framework explains how flood resilience projects will be assessed and funded, and what it means for local authorities, environmental organisations, communities and homeowners looking to reduce flood risk through measures such as Property Flood Resilience (PFR), Sustainable Drainage Systems (SuDS) and Natural Flood Management (NFM).
For organisations working in flood resilience, understanding the funding framework is essential to developing projects that can successfully attract investment and protect communities from flooding.
Who the Funding Policy Applies To
The guidance applies to organisations responsible for managing flood risk, as well as partners delivering flood resilience projects.
These include:
Risk Management Authorities (RMAs) such as the Environment Agency, Local Authorities and Internal Drainage Boards
Non-RMAs, including environmental organisations, charities and landowners who may lead Natural Flood Management (NFM) projects
Delivery partners and contractors involved in designing and implementing flood resilience schemes.
While the policy focuses on organisations submitting projects, the ultimate aim is to reduce flood risk for communities, residents and businesses.
What the New Guidance Explains
The updated guidance provides clearer instructions on how projects can be submitted for funding and how eligibility will be assessed. It explains:
How much funding a project may be eligible for
What data is required to demonstrate value for money
How to apply consistent optimism bias rates when estimating project costs
How to submit a new project opportunity for funding consideration.
The guidance also provides tools and calculators to help estimate the economic benefits of flood risk projects, helping ensure investment is directed to projects that deliver meaningful reductions in risk.
Supporting Different Types of Flood Resilience Measures
A key principle of the new policy is that projects are assessed based on the area of land and properties benefiting from reduced flood risk, rather than the ownership of those properties. This means a wide range of flood resilience measures can contribute to funded schemes.
Property Flood Resilience (PFR)
Property Flood Resilience measures are installed directly on homes or businesses to reduce damage during a flood event. Examples include flood doors, barriers and pumps.
These measures can form part of wider flood risk management schemes where they provide clear benefits by reducing flood damage and improving resilience for properties at risk.
Sustainable Drainage Systems (SuDS)
Sustainable Drainage Systems manage rainfall by slowing, storing and safely releasing surface water.
SuDS can help reduce pressure on drainage networks and reduce flood risk in urban areas, particularly where surface water flooding is a challenge.
Natural Flood Management (NFM)
Natural Flood Management uses natural processes to slow the movement of water through the landscape.
Examples include:
Tree planting
Floodplain and river restoration
Wetland creation
Natural barriers such as leaky dams and bunds.
The new guidance introduces an NFM benefits calculator and heat maps to help identify where these approaches may be most effective.
What This Means for Local Authorities and RMAs
For Risk Management Authorities, the updated policy provides clearer guidance on how projects should be developed and submitted. The guidance introduces:
Clearer data requirements for funding submissions
Consistent methods for calculating project benefits
A more streamlined process for submitting new project opportunities.
This should help RMAs develop stronger project proposals and bring forward investment more efficiently.
What It Means for Residents and Communities
For communities affected by flooding, the new funding policy supports a wider range of solutions designed to reduce flood risk.
These include:
Property-level protection measures for homes and businesses
Catchment-scale approaches such as Natural Flood Management
Improvements to drainage systems in towns and cities.
By focusing on the benefits delivered to properties and communities, the policy supports projects that provide real reductions in flood risk.
Delivering Flood Resilience in Practice
Managing flood risk increasingly requires a combination of approaches, including engineered flood defences, property-level protection and nature-based solutions.
The updated FCERM funding policy recognises the role of PFR, SuDS and NFM.
Together, these approaches can help build more resilient communities while supporting wider environmental and climate adaptation goals.
Looking Ahead
Further guidance and support will be released throughout 2026 to help organisations develop projects and apply the funding policy in practice.
For communities and organisations working in flood risk management, the new framework provides an opportunity to bring forward projects that deliver practical and measurable reductions in flood risk.
At Watertight International, we work with local authorities, housing providers and communities to deliver practical flood resilience solutions that align with national funding frameworks. Our focus is on helping partners to identify the most appropriate measures – whether through Property Flood Resilience, Sustainable Drainage Systems or Natural Flood Management – to support long-term resilience to flooding.
Further Reading
Flood and Coastal Erosion Risk Management Funding Policy
Applying the 2025 FCERM Funding Policy – Guidance and Resources
Questions?
If you would like further information or advice on any of the above information, please contact our Commercial Service Manager, Toni Clarke on toni@watertightinternational.com who would be happy to help.
