Businesses affected by the evacuation of Whaley Bridge over fears a damaged dam could collapse will be able to claim for emergency government funding.
People living in the Derbyshire town were asked to leave their homes and businesses for nearly a week after the dam wall of Toddbrook Reservoir became unstable following heavy rain.
Businesses in the area will be given £100,000 to cover uninsured costs, while a further £150,000 will be given to the local council – High Peak Borough – to “help the recovery of the local economy”.
More than 1,500 people were evacuated from the town following heavy rain, although a small number refused to leave their properties despite a “danger to life” warning issued by the Environment Agency.
An RAF Chinook was drafted in and 530 tonnes of aggregate used as part of efforts to reinforce the spillway.
The Ministry for Ministry of Housing, Communities and Local Government said it had activated the Bellwin scheme to reimburse local authorities for the costs they have paid out during the emergency situation in three areas of the UK.
In addition, up to £2 million will be made available to help farming communities in Wainfleet and North Yorkshire which were impacted by flash flooding earlier this year, while £3 million will be spent rebuilding two bridges in North Yorkshire, on Grinton Moor and near Cogden Beck.
Local Government Secretary Robert Jenrick said: “I want to praise local residents for the resilience they have shown during this worrying time.
“The Government is committed to helping the places affected by these recent events to get back on their feet.”