Further flood compensation for two authorities

Published	9 January 2008

Floods Recovery Minister John Healey today announced that Rotherham Metropolitan Borough Council and West Lindsey District Council will receive payments totalling almost three quarters of a million pounds from the Government to help with their costs in clearing up after the summer's floods.

Rotherham Metropolitan Borough Council will receive £695,897. This is an interim payment and they may receive a further payment once they have submitted final claims. West Lindsey District Council will receive £20,205.

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

This brings total payments under the Bellwin scheme so far to £2,177,589 in addition to the up to £63 million of other Government support for all flood-hit areas - with more to follow.

In total 82 local authorities registered an interest in making a Bellwin claim so the Government stands ready to make further payments in the next few weeks once claims have been received.

Floods Recovery Minister John Healey MP said:

"This summer saw the worst flooding in Britain for over a century. It hit large parts of the country causing widespread damage. As Floods Recovery Minister I have made many visits to flood-damaged areas and have been impressed by the commitment of councils and other agencies in helping their communities get back on their feet.

"But clearly this comes at a cost. That is why, given the extraordinary nature of these floods, we made it easier for councils to claim back additional costs from the Government. We significantly extended the period for which they can claim and increased 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'm pleased to today announce Bellwin payments for Rotherham Metropolitan Borough Council and West Lindsey District Council. The funds will be in their accounts shortly.

"While authorities can be proud of the progress they have made so far there is a long way to go. That is why more Government support will be available - including further Bellwin payments - as well as help from the European Commission. The flood waters are long gone but the clear up and repair problems for many households, businesses communities have not. Government is therefore also committed to the long haul and to continuing our support for local authorities and agencies leading the recovery efforts."

Notes for editors

1. The total funds related to flood recovery from the Government received by these authorities so far are listed below:

Authorities	Total (£)
West Lindsey District Council	130,000
Rotherham Metropolitan Borough Council	958,959

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.