The minister said the fund would bring more than 86,000 homes up to a decent living standard.

London councils are the big winners in the allocations for the next two years with Lambeth Council getting £82m, Tower Hamlets Council £71m, and Lewisham £69m.

Outside London, Durham Council will get £38m and Nottingham Council will get £46m.

The government announced the funding for the next two years after the spending review in October 2010, but the allocation was provisional until now.

The cash will help councils bring their homes up to a decent standard, from fitting new roofs and windows to updating kitchens or heating systems.

Prisk said that this new construction and skilled work would provide a shot in the arm for thousands of local businesses and tradesmen, supporting the Government’s measures to boost British jobs and the economy.