Funding Thames Estuary 2100: costs and investment
How to fund the £16.2 billion cost of upgrading flood defences in the Thames Estuary up until 2100.
Applies to England
How much investment is needed
For the period 2023 to 2100, we expect costs of around £16.2 billion to:
- secure land for future flood defences
- maintain and upgrade flood defences
- create habitat for wildlife
- replace the Thames Barrier by 2070
We also need to fund teams in the Environment Agency to monitor, review and update the Thames Estuary 2100 (TE2100) Plan.
Since 2012, the estimated cost of putting Thames Estuary 2100 into action has increased by around 50%. This increase is due to:
- inflation
- flood defences deteriorating faster than expected
- a better understanding of the current defence system
We will continue to review and update the cost estimates to adapt to changes to the work needed.
Flood Defence Grant in Aid (FDGiA) investment
The Environment Agency is one of several risk management authorities. The government provides funding to these organisations to manage the risk of flooding.
The main form of government investment to manage flood risk in England is called Flood Defence Grant in Aid (FDGiA). However, FDGiA will not be enough to fund all the flood defence work needed in the Thames Estuary. We need to fill this funding gap.
Securing investment from people who benefit from flood defences
A condition of FDGiA funding is that we must secure contributions from people who benefit from flood defences (the beneficiaries). This applies to all the work we carry out for Thames Estuary 2100.
In the estuary, there are a significant number of beneficiaries. They include businesses, landowners, infrastructure providers and others. We need to work with beneficiaries to explore opportunities to obtain contributions.
Riparian owners
Landowners whose land is immediately next to a flood defence wall or embankment are called riparian owners. If a flood defence is in a very poor condition, the Environment Agency has powers (but not a duty) to repair it. The Environment Agency may require payment from the riparian owner.
Within the area set out in the Metropolis Management (Thames River Prevention of Floods) Amendment Act 1879, the Environment Agency has additional powers. The Environment Agency may carry out works to flood defences in this area and recover costs from their owners.
Find out more about your responsibilities as a riparian owner.
Other sources of investment
We have identified wider benefits we can create together while upgrading flood defences. These include benefits to communities, the environment and the economy. We will look for investment that will enable us to achieve these benefits as we upgrade flood defences.
For example, in some locations, rather than build higher flood walls, we could design flood defences that are set back into the landscape. This would provide a floodable space next to the river that could be used for recreation outside of high tides. To help fund these flood defences, we would work with stakeholders who can fund improved public or recreation spaces, such as councils, developers and charities.
Investment strategy
We are working with our partners to develop a strategy to cover the gap between government funds and projected costs. We will publish this strategy by 2025.
The investment strategy will:
- be co-developed with those who will benefit from Thames Estuary 2100
- explore long-term finance options
- consider innovative funding sources, such as green finance
- propose how to fund a replacement for the Thames Barrier
- outline legal roles and responsibilities
We will work with partners to consider all options for innovative investment.