£30m ‘gift’ to the fatcats

UK insurance firms are to get £30million of taxpayers’ cash so they can offer developing countries cut-price policies against natural disasters.

The money will come from the Department for International Development’s £13billion budget.

But instead of feeding starving youngsters, the fouryear plan will funnel cash into the pockets of rich City insurance fatcats.

A No10 official confirmed the long-term aim was for UK firms to make money.

Oxfam’s Max Lawson said: “Harnessing insurance industry resources is interesting but must be judged on the benefits it provides poor countries rather than the City.”