Flood-hit familes and businesses will be in line to benefit from a £50m relief fund, Chancellor George Osborne has announced.
Households would be able to claim up to £5,000 each to deal with the aftermath of Storm Desmond, said Mr Osborne, as he stood in for David Cameron at Prime Minister's Questions.
Mr Osborne said the latest funding would be handed out by local councils in an bid to overcome "administrative problems" that had held up previous emergency payments.
He added; "When it comes to rebuilding the infrastructure of Cumbria and Lancashire and other areas affected, we are assessing now the damage to the flood defences and the damage to the roads and funds will be made available.
"One of the benefits of having a strong and resilient economy is we can help people in need."
Each affected home will also be eligible for a grant of up to £5,000 to spend on safeguarding the property against future floods, such as installing barriers and moving electricity sockets.
It had already been announced 5,000 flood-hit businesses and households in Cumbria and Lancashire are to get relief from council tax and business rates.
Leader of Cumbria County Council, Stewart Young said: “We’ve been working closely with DCLG and this announcement of a community recovery package is very welcome news. We’re only starting to get a real idea of the impact of the flooding but what is absolutely clear is that the cost of recovering from these floods will be astronomical.
"Households are going to need support to get back on their feet and manage while they are unable to return home and we know from experience that businesses will need potentially significant help to bounce back.
“Over and above this package we’re still discussing with DCLG what will be required to rebuild Cumbria’s damaged infrastructure. The damage to our roads and bridges is severe; we have bridges washed away, roads destroyed, 1000s of tonnes of debris to remove and communities still cut off. The hard fact is that is that recovery is going to be a long process and there’s no doubt that we will need support over the long term. This is a good start.”