The funding will help reduce the costs of enforcing against unauthorised sites - it is estimated that this costs local authorities around £18 million a year.
In the North West £2 million of Gypsy and Traveller Sites Grant has been allocated to develop a site in Cumbria, and support refurbishment works on an existing site in Lancashire.
Communities Minister Iain Wright said:
"The Gypsy and Traveller Sites Grant is crucial to the delivery of both new and better sites to ensure that Gypsies and Travellers have authorised, decent places to live.
The problem of unauthorised camping and the tensions it can cause will only be tackled through sufficient provision of well-managed, authorised sites, coupled with effective enforcement action. Site provision helps reduce the need for enforcement action - which costs taxpayers around £18 million a year - and makes it quicker and easier to take action where unauthorised camping does take place."
Schemes have been assessed by independent consultants and considered by Regional Assemblies. All proposals for new sites are subject to the full planning process.
The Homes and Communities Agency will be responsible for the Gypsy and Traveller Sites Grant for 2009/10 onwards.
