Farmers affected by restrictions on the movement of animals imposed following the outbreak of foot-and-mouth disease are to be given a multi-million pound package of support, it was announced last night.

Environment Secretary Hilary Benn said £12.5m was being made available for farmers in England to help ease the financial difficulties they face in the wake of the outbreak.

Foot-and-mouth disease is costing farmers in the region of £250m in lost exports and lower meat prices, the National Farmers' Union estimates.

Mr Benn said the financial package of assistance will include £8.5m in the form of a one-off payment for hill farmers who have been affected.

Another £1m will be made available to raise the level of subsidy for the National Fallen Stock Scheme for farmers in the foot and mouth risk area from ten per cent to 100 per cent.

Up to £1m will also be handed out to farming charities which provide advice as well as practical and emotional support to farming families.

Mr Benn said the package would also include £2m for the promotion and marketing of lamb, beef and pork both for the domestic and export market.

The package of measures comes after animal health officials last week gave the go-ahead for livestock markets to resume in some parts of the UK not considered to be at risk of foot-and-mouth disease or the outbreak of bluetongue.