Healey announces further compensation for flood-affected communities

Published	12 February 2008

Floods Recovery Minister John Healey today confirmed nearly £1.6million funding to six authorities across the country, to help get communities back to normal following last summer's floods.

These payments are being made under the Bellwin scheme, which covers the costs incurred by local authorities during immediate action to safeguard residents and property or prevent suffering as a result of a disaster or emergency. The payments are:

Gloucestershire Police will receive £955,420
Rotherham Metropolitan Borough Council will receive £435,721
North Lincolnshire Council will receive £70,082
East Lindsay Council will receive £55,910
Stratford Upon Avon Council will receive £50,342
Worcester City Council will receive £16,181

This brings total payments under the Bellwin scheme so far to £10,385,036 and is on top of the £63million of other Government support for all flood-hit areas.

Floods Recovery Minister John Healey said:

"Last summer, we saw the worst floods in this country for over a century. I made many visits to the affected areas, and saw for myself the extraordinary work of councils and other agencies to help and support those communities.

"Clearly this came at a cost to councils, and so we made it easier for them to claim back additional costs from the Government, by significantly extending the period for which they can claim, and increasing the proportion of costs they can receive to 100 per cent of spending above the threshold. To ensure money reached councils as quickly as possible, we also said we are ready to make interim payments.

"I am delighted to be announcing this funding today for these six authorities. The funding will be in their accounts very shortly.

"But I am aware that while the flood waters may have receded, there is still a long way to go. That is why more Government support will be available - including further Bellwin payments.

"We are committed to helping councils for the long haul as they continue to lead the recovery effort in their local communities."

Notes for editors

1. These Bellwin payments mean the total flood recovery funding from the Government received by these authorities so far are as follows:

Authorities	Total (£)
Gloucestershire Police	£955,420
Rotherham Metropolitan Borough Council	£2,090,577
North Lincolnshire Council	£250,082
East Lindsay Council	£435,910
Stratford Upon Avon Council	£673,842
Worcester City Council	£76,181

2. The Bellwin scheme predominantly covers uninsurable costs as defined by the long established insurance policy offered to local authorities by the Zurich insurance company.

The costs typically covered include: costs of evacuating people from dangerous structures and works to make them safe following a natural disaster; temporary re-housing, initial repairs to and the clearing of debris from highways, pavements and footpaths.

The statutory requirement for the Bellwin scheme is that claims must relate to costs incurred by an authority on, or in connection with, immediate action to safeguard life and property or to prevent suffering or severe inconvenience as a result of a disaster or emergency.

The scheme does not usually cover capital expenditure; or the normal wages and salaries of the authority's regular employees; whether diverted from their normal work or otherwise, and the standing costs of the authority's plant and equipment.

The usual period to take action eligible for grant is two months but for the June and July floods that timescale has been trebled to six months. Local authorities will also be able to claim 100 per cent of eligible costs - instead of the normal 85 per cent - once they have spent over the threshold of 0.2 per cent of their revenue budget. The extension of time and the increase in the percentage means that authorities can claim more of their expenditure.

While local authorities normally have a month to notify the department of their intention to claim under Bellwin, on this occasion the department has been proactive in contacting them to ensure that they are in no doubt that they can claim, know how to apply and are aware of what they can claim for.