The cash has been allocated following the most severe winter in 30 years, amid complaints from motoring organisations over the quality of the country’s roads.
Lord Adonis, the Transport Secretary, said the money would be allocated to councils as soon as possible, to enable maintenance staff to tackle the problem.
According to one industry survey by the Asphalt Industry Alliance, four out of five councils suffered severe damage, creating a £400 million gap in their maintenance budgets.
Councils estimate it will take more than 11.5 years to tackle the backlog of repairs in England, and 15 years in Wales.
The Government has been under pressure to act from motoring groups.