Residents could get £10,000 to escape airport noise

That does not seem a good deal. Buying a similarly sized house in an area with no/little noise will surely cost more than 10,000 and the proceedings from selling the old place.

Also I can not understand BAA only insulating key buildings like schools and hospitals. Would it not be wiser to insulate the whole lot? Sure it would be expensive but it would also cut back on complaints a lot. It has become common practise at AMS and most (all?) Dutch airports.