The cash from the Department of Communities will be delivered through a £10m recovery package to councils on top of the existing Bellwin scheme. The Bellwin scheme is emergency funding for local authorities available when lives and property have been at risk, introduced in 1983.
In a statement to the House of Commons yesterday, Prime Minister David Cameron said both home and business owners, even if uninsured, can access the cash by applying to police authorities to pay for the repairs under the 1886 Riot Damage Act.
Where claims usually have to be received within 14 days the Home Secretary, Theresa May, has granted an extension to 42 days.
The announcement came as the Association of British Insurers revised its estimated figure of claims likely to be paid out by the insurance industry to to over £200m.
Otto Thoresen, the director general of the ABI said: “The insurance industry is already paying out claims to people with insurance, but wants to do more to support the Government in helping people get back on their feet. We will work in partnership with the Government, and share our expertise, to make sure that the police compensation schemes work effectively and get compensation to people who need it quickly.”
For business, a £20m High Street Support Scheme – funded jointly by the Departments for Communities and Local Government, and Business Innovation and Skills – has also been set up for the streets and areas where businesses were affected by the rioting.
Councils will be responsible for distributing the money and could use it to reduce business rates, finance building repairs or encourage customers back to the affected areas.
Communities Secretary Eric Pickles said: “Our priority is to get local communities back on their feet, get businesses up and running again and make sure nobody is left without a roof over their head.”
The lettings and estate agent acting for the iconic Tottenham building which burnt to the ground on Saturday spoke to Mortgage Solutions this week.
