Scores of families left homeless by severe flooding were last night given a surprise cash boost by the Government.

At least 180 Oxfordshire families are still unable to return to their homes in the wake of widespread floods in July last year.

The vast majority were each given a 12-month exemption from paying their council tax bills.

The exemptions cost more than £500,000 and were paid for by the taxpayer.

Exemptions were due to expire next month, leaving flood-hit families facing another monthly bill on top of the cost of their temporary accommodation.

But now the Government has intervened and promised to provide cash to councils, enabling them to continue waiving council tax bills for those unable to return home.

The move was welcomed by flood victim John Ellison, 61, who has been living in a caravan since 15 inches of floodwater deluged his bungalow in Abingdon Road, Standlake.

He said last night: "I think it would be good if councils did take advantage of the Government's announcement.

"If they have got that facility, I think they should exercise it.

"People living in caravans should be exempt from council tax if they can be."

Hundreds of families who were flooded out were granted temporary council tax exemptions, but the majority are now paying their tax after returning home.

Of the 180 families still unable to return to their homes, 50 live in the Vale district of Oxfordshire, four more in Cherwell and 126 families remain homeless in west Oxfordshire - including 12 living in caravans at the last count.

A spokesman for Oxford City Council said no council tenants were still out of their home, but could not provide figures for private tenants.

In reality, the number of families that remain out of their homes is likely to be nearer 200.

The Government's announcement was made by floods recovery minister John Healey who said: "Real progress is being made getting families back home following last summer's floods.

"One in six of those still out a month ago are now home.

"But for the most badly affected it will take more time, so it would not be fair for them to pay council tax for homes they cannot live in.

"This is a special step in recognition of these special circumstances."