John Healey MP said that since the floods, local authorities had been able to offer council tax exemptions to householders unable to live in their own homes - but these exemptions were only allowed for one year.

Today he told councils they could use extra discretionary discounts of up to 100 per cent for these families over a year on from the floods, because "it would not be fair for them to pay council tax for homes they can't live in".

"That is why I am pointing out to councils that they have the discretion to grant council tax discounts to their flood-hit residents still out of their homes.

"And I am also promising that Government will provide funding for this so that other local taxpayers are not unfairly affected. This is a special step in recognition of these special circumstances," he said.

The latest Government figures showed that around 4,700 households were still not fully returned to their homes and were living in caravans, temporary accommodation or the top floor of their homes.

Mr Healey said these households would have faced over £3 million in council tax bills over the coming year without the Government's intervention.

He also said "real progress" was being made in getting these people back home.

"In the last year a huge amount has been achieved getting communities back on their feet and families back home.

"I am determined this work continues at pace and life is made as easy as possible for those whose lives are still disrupted in the aftermath of the floods," he added.