News Release from the ODPM - 22 March 2005:

The cost of fire to the economy of England and Wales was £7.7bn in 2003 - shows a new report published today.

The Economic Costs of Fire provides the most precise figures to date on how much fire costs. The direct losses from fire - damage to property, death and injury and loss of output through work absence came to some £3.3bn. But most of the costs represent measures taken by the Government ad others to manage fire risk. Costs in anticipation of fire - insurance administration and fire prevention measures, amounted to £2.8bn, with the cost of providing fire cover around £1.7bn.

The main findings of The Economic Cost of Fire show that:

• The overall cost of fire to the economy in 2003 was £7.7bn - approximately 0.9 per cent of the national income of England and Wales.
• The average cost of a domestic fire is £25,300 and is one of the most expensive incidents that can befall any household.
• The average cost of fire in a commercial building is £58,100. This includes the economic cost of injuries and fatalities.
• A large number of incidents attended by the Fire and Rescue Service are either false alarms or non-building fires. The cost of attending these incidents was estimated at £1.4bn.
• The estimated cost of arson was £1.9bn - with the cost of fire protection included, this rises to £2.8bn.

The report shows that the cost of fire has risen by £1.5bn since 2000, due to a number of reasons:

• Rising property prices have increased the cost of property damaged by fire by 39%.
• The Government have been investing in the Fire and Rescue Service, and this is reflected in a recorded increase of 28% in the cost of providing fire cover.
• Rising prosperity has increased the estimated cost of human casualties, even though the number of people injured by fire has been fallen.
• business investment in fire protection for buildings has increased by nearly £200m - another welcome development, but recorded here as an increased cost.

The Fire and Rescue Service Minister said:

"Fire prevention must be the way forward for a modern Fire and Rescue Service. The Government has invested heavily in the Service over this period, and I welcome the increase in business expenditure on fire protection. But the continuing loss of life and property remain cause for concern."

"That's why we will continue to work with the Fire and Rescue Service in our common aim to bring down the numbers of fires. We have already put in place a number of changes to help achieve this including placing a new statutory duty on fire and rescue authorities to promote fire safety and providing additional funding to help them achieve this."

A copy of The Economic Cost of Fire: Estimates for 2003 is available on the ODPM website.