Families made homeless by riots will be compensated

Government pledges sufficient funds to rehouse those forced out and assist others whose homes have been damaged

A building damaged by fire during riots in Croydon. The council says 55 households have had to leave their homes. Photograph: Miguel Medina/AFP/Getty Images

At least 100 families are thought to have been made homeless by arson and looting since Saturday with the government pledging sufficient funds to give financial assistance to others whose homes have been damaged.

Some of the money will be funded through a £10m “recovery” package to councils on top of the existing “Bellwin” scheme. The Department for Communities also says it will meet the immediate costs of rehousing those forced out by the disturbances.

Homeowners will also be able to apply to police authorities to pay for repairs under the 1886 Riot Damages Act, an arrangement that has previously been said to need updating. The time limit for claims has been extended from two to six weeks.

The worst-hit families appear to have been in Croydon, south London, where the council says 55 households have had to leave their homes, many above shops at Reeves corner , the scene of a devastating furniture store blaze on Monday. Eighty people are being helped with emergency accommodation while others have gone to stay with friends and family.

“The Department for Work and Pensions will make urgent payments to families moving to unfurnished accommodation, and this – together with donated white goods and other donated items – will contribute to making people semi comfortable,” said a spokeswoman. “The social work team is also providing support.”

In the north London borough of Haringey, where the trouble started on Saturday, 45 homes have been badly damaged and 29 people were sheltered by the local council or other social landlords. In Southwark, a family whose home was damaged in a fire and been advised not to return to it were rehoused. Birmingham council has found accommodation for a family following a suspected racially motivated attack on their property.

Police have been urged by ministers to respond as quickly as possible to claims and the insurance industry says claims should not rise for those who obtain assistance in this way.

The communities secretary, Eric Pickles, also said his department was proposing changes to housing legislation so that landlords would have stronger powers to evict tenants who engage “in serious anti-social behaviour or criminal activity such as rioting beyondthe local neighbourhood”.

Sir Merrick Cockell, chairman of the Local Government Association, said: “Councils are working to help residents and businesses that have been devastated by the arson and looting of recent days to get back on their feet as quickly as possible. The announcement of extra emergency funds will help local authorities and businesses speed up the process of rebuilding shattered neighbourhoods and will assist in re-housing those who have had their homes and possessions destroyed by mindless criminals.

“For neighbourhoods to recover it is vitally important that local businesses affected by the riots are nurtured and encouraged to re-open … It is also important that those businesses and residents whose insurance does not cover these mindless acts of criminality are able to access compensation in a timely manner. The process of applying directly for riot compensation needs to be simple and fair, and the payouts swift.”