The British Government is considering “a number of options” on the progress of the country’s new flood insurance program.

The current agreement between the Government and the insurance industry – the Statement of Principles – expires next June, and a replacement is yet to be agreed.

Under the agreement, which began in 2000, insurance companies must offer flood cover as part of standard policies. But the industry argues most householders who face a significant threat of floods do not pay a price that reflects the risk.

Environment Minister Richard Benyon told the British Parliament last week that details of the replacement scheme are now being considered.

“We are looking to develop with insurers a model that delivers benefits to households in need of support, while avoiding poorer policyholders subsidising wealthier ones,” he said.

“A number of options are under consideration, including an industry-led levy allowing policyholders in high flood-risk areas to continue to secure affordable insurance without having an impact on bills more generally, since it would reflect existing pricing arrangements.”

Mr Benyon says the focus is on resolving “detailed design issues” and discussions with the industry remain positive. Further announcements will follow “in due course”.