Thousands of properties were flooded during the summer
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People most affected by the July floods in west Oxfordshire and west Berkshire are to benefit from a grant of £1m.
The two councils are among nine taking a share of the funds allocated by the number of households still displaced in each area following the disaster.
The announcement was made by the floods recovery minister John Healey MP.
Overcrowding, high fuel costs and safety fears are some of the key issues raised by the worst affected local authorities at talks Mr Healey chaired.
The roundtable meeting was held earlier this week.
Many of the affected authorities have already been providing support such as laundry facilities, food vouchers, safety checks, free access to leisure facilities and help with fuel bills.
The payments - announced on Thursday - will cover those residents who have not yet returned to their homes and may be living in caravans.
Mr Healey said: "I am concerned having seen for myself the problems and stress some families still face from overcrowding and the difficulty in doing everyday jobs like cooking meals for the family or children having peace and quiet to do homework.
"This new money will help the small number of councils with a large number of households not yet back in their homes to carry on that vital work.
"Obviously what people want most is to be able to return to their homes."
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