Local authorities in areas that have experienced flooding will be given £500 for each affected house to help with recovery efforts under the Community Recovery Grant scheme.
This was among measures announced after a meeting of the Cobra emergency committee chaired by prime minister Boris Johnson amid criticism over the Government's handling of the crisis.
An extra 100 UK armed forces personnel will be deployed to South Yorkshire to help support the recovery effort, while the Department for Business, Energy and Industrial Strategy will provide funding for business recovery grants.
These will amount to up to £2,500 for each eligible small and medium-sized business which has suffered severe impacts from the floods that cannot be recovered from insurance.
Mr Boris Johnson said: 'The recent flooding has had a devastating effect on people and businesses, and it’s essential that our communities have the support they need to recover.
'We’re announcing this funding to support households and businesses get back on their feet.'
However, Labour and the Liberal Democrats said he should declare a national emergency.
Jon Trickett, shadow minister for the Cabinet Office, said Mr Johnson's proposals were 'too little too late'.
He said: 'You can't trust Boris Johnson to look out for the North or the Midlands or protect our communities from flooding.'