Prime Minister pledges financial support for flood victims

Published	7 July 2007

Prime Minister Gordon Brown has announced a £14million package of immediate support for the areas worst hit by flooding to help local authorities and communities aid recovery. This money is in addition to the Bellwin scheme which will provide financial support to local authorities for eligible costs they incur on immediate action and to safeguard properties.

He will also announce changes to the Bellwin scheme making it easier for local councils to claim back additional costs from Government, significantly extending the period for which authorities can claim and increasing the proportion of costs they can receive in support grants to 100 per cent.

The package put together by the Communities Secretary Hazel Blears and Local Government Minister John Healey represents immediate support for communities. It is important that we get an accurate assessment of what costs will be covered by insurance. The Government will continue to monitor the situation closely working with local councils and agencies to assess what more it can do in the coming days and weeks.

The package of immediate support includes:

£10m to local authorities in flood hit areas to support the work that they and other organisations are already doing to help recovery, particularly to help back on to their feet those who have lost everything and need immediate support;
£3m from the Department for Transport to meet claims from local authorities for help with the cost of repairing roads and bridges; and,
A contingency reserve of £1m that may be drawn upon as needed by the Department for Work and Pensions to meet additional grant applications arising out of the recent floods. This can cover replacement of essential household items for vulnerable individuals and their families.

The Treasury will host a high level meeting next Tuesday with the Association of British Insurers, Local Government Minister John Healey who is also the newly appointed Flood Recovery Minister, Treasury Minister Kitty Ussher and Environment Minister Phil Woolas to discuss the insurance industry's approach to meeting the expected £1.5billion of claims.

In addition, there will be changes to the emergency Bellwin scheme, making it easier for councils to claim back additional money from Government. These changes are special arrangements for these floods, because of their exceptional nature. They are:

tripling the period for which local authorities are eligible to claim - from 2 months to 6 months - meaning they can claim for more of the costs they incur;
increasing the proportion of costs local authorities can claim to 100 pre cent (instead of the current 85 per cent), once they have spent above the usual threshold (0.2 per cent of their revenue budget).

Prime Minister Gordon Brown said:

"I would like to pay tribute to the heroic efforts of those who have responded to the floods locally. The emergency and rescue services, local authorities, Environment Agency, voluntary sector and individual members of the public have been brave and determined in what are very distressing circumstances.

"I am taking immediate action to alleviate the suffering of those affected by the floods by announcing a £14million package of support to get people back on their feet as quickly as possible. I'm also pleased to announce that we are increasing the proportion of costs local authorities can claim to 100 per cent.

"Government will continue to work closely with local councils and communities as we do everything possible to help."

Notes to editors

1. Today's package builds on support the Government has already provided to local authorities and agencies.

2. On Monday, 2 July, Hilary Benn announced a £200m increase in spending across government on flood risk management and defences from £600m this year to £800m in 2010/11.

3. Advice has also been issued locally by the Department for Work and Pensions on the benefits available to victims of the flooding.

4. In addition to benefits for those who are unable to work, either permanently or temporarily, loans or grants may be available to help replace essential household items.

5. The Department for Work and Pensions has to date paid out Community Care Grants totalling over £ 21,600. Community Care Grants are available to people receiving Income Support, Job Seekers Allowance or Pension Credit. Grants are intended to help people replace the most essential household items.

6. The Bellwin scheme (named after Lord Bellwin, the Local Government Minister who introduced it) provides emergency financial assistance from Government to local authorities, to meet costs of immediate action to safeguard life or property or prevent severe inconvenience to inhabitants in the case of an emergency or disaster. Due to the exceptional nature of the recent floods, the proportion of costs local authorities can receive in support grants has been raised to 100 per cent (instead of the usual 85 per cent), once they have spent above the usual threshold (0.2 per cent of their revenue budget).