Floods Minister Elliot Morley has slammed an insurance firm which sparked widespread panic among Sussex householders.

In a House of Commons debate, he accused Esure of trying to profit from a "publicity stunt".

Last month, the internet firm announced it would deny cover to any prospective new customers living in the ten per cent of postcodes most susceptible to flooding.

Residents in parts of Lewes and Uckfield, which suffered flooding in 2000, were upset as they feared other firms might follow suit, leaving them without any affordable protection.

But Mr Morley said it had since emerged that Esure hardly provided any cover to households in flood risk areas.

He told MPs he believed the firm had made the announcement to gain publicity for the fact it could offer lower cost policies by taking this stance.

He added: "This was a bit of a cheek. We are not aware they have ever provided significant cover.

"They are cherry picking the market, which they are entitled to do in terms of going for a low risk market. Their announcement was a publicity stunt which backfired."