The "vital" rail line running through Dawlish was battered by waves on Wednesday
An extra £30m has been pledged for flood repairs and maintenance after the prime minister defended the government's response to the storms.
That is on top of the £100m announced by David Cameron on Wednesday.
Mr Cameron will chair a Cobra emergency committee later as more rain is forecast for areas already saturated.
Meanwhile, the transport secretary said he would review alternative rail routes to south-west England after a "vital" Devon rail line was destroyed.
Communities Secretary Eric Pickles told MPs that the severe weather had caused damage to the transport network and sea defences as well as power lines.
He said the government would carry out a "rapid review of the additional work needed to restore our flood defences and maintain them".
A further £30m would be assigned to flood works, Mr Pickles said, in addition to the extra £100m announced by the prime minister on Wednesday.
'Very proactive'
The money would "cover costs incurred during the current emergency response and recovery, as well as essential repairs to ensure that defences are maintained", he said.
Of the £130m total, £30m is to be spent in 2014/15 and £100m in 2015/16.
Mr Pickles also said 42 new flood defence schemes were planned for 2014/15.
He made the statement to MPs in the absence of Environment Secretary Owen Paterson, who has been forced to pull out of leading the government's response to the floods to have emergency surgery on a detached retina.
But UKIP, which dismissed the extra spending as "far too little, far too late", called on the government to channel part of its foreign aid budget into helping those worst hit by the flooding.
It is urging the government to suspend payments from the £11bn annual budget and divert them "on a month by month basis" to areas in most need of repairs to storm-damaged property, renewal of flood defences and restoration of transport links.
Earlier on Thursday the prime minister rejected criticism of Mr Paterson, who has been accused of being slow to respond to the storms and subsequent flooding.
In a BBC Manchester interview Mr Cameron insisted that the government had been "very proactive" in its response to the storms and that Mr Paterson was "on top of the flooding issue".
Rail line concerns
Transport Secretary Patrick McLoughlin's comments to MPs about conducting a "rigorous review" into alternative rail routes in the South West came after a storm destroyed parts of a railway line in Dawlish, Devon, that is considered a vital transport link between the region and the rest of the country.
Robin Gisby of Network Rail told BBC Radio 4's Today programme that it would take "several weeks" to fix the line.
There are concerns among business leaders in Devon and Cornwall that the destruction of the line will cost the local economy millions of pounds.
There are more weather woes predicted for many areas already badly affected, prompting Met Office severe weather warnings for rain in southern parts of England and south Wales, and two severe flood warnings in the Somerset Levels.
Forecasters said there could be 20mm-40mm (0.8in-1.6in) of rain falling on saturated ground on Thursday, with further bouts of rain to come into the weekend.
The storm caused huge damage to the railway line in Dawlish, which is expected to take weeks to fix
Residents of the Somerset Levels have been urged to evacuate as the area braces for more flooding
Waves crashed over the harbour wall at Newhaven in Sussex on Wednesday
BBC weather presenter Matt Taylor said: "After some dry and bright weather to begin with across central southern parts of England and Wales, I'm afraid to say the rain is back - some heavy and persistent rain nudging its way northwards through the afternoon to take us into the early evening rush-hour.
"The winds, although not much of a feature of this to begin with... will strengthen as we go through Thursday night into Friday morning."
The Met Office has amber severe weather warnings - meaning "be prepared" - for rain for parts of southern England from 15:00 GMT.
There are yellow severe weather warnings - "be aware" - for areas including south-west England and south Wales.
The Environment Agency has severe flood warnings - meaning "danger to life" - in Somerset at Salt Moor and North Moor including Moorland, and at the A361 East Lyng to Burrowbridge.
There are about 60 flood warnings in England and Wales and more than 200 flood alerts. In Scotland, there are four flood warnings in Tayside, and a number of flood alerts.
Western Power Distribution said that at 12:00 GMT around 1,700 customers were without power across south-west England, of which 980 were in Cornwall, 60 in Devon and 690 in Somerset.
The company said about 44,000 customers had been affected by power cuts since Tuesday afternoon.
Looting fear
Many residents in the Somerset Levels have been evacuated amid fears flood defences could be overwhelmed.
Sue Sayer, in the village of Moorland, said: "They're advising, if you can, go. But there's an awful lot of people that are not because the risk then of looting if people see empty houses.
"There has already been looting in some properties, not directly in the centre of the village, but on the outskirts there's already been looting which is despicable."
The BBC's Sarah Ransome says temporary flood defences are being installed around the more vulnerable properties in the area to try to protect them from the next wave of flooding.
Pc Rob Jacobs, from Avon and Somerset Police, who was on patrol locally, said some parts were already impassable.
"We've got 4x4 vehicles but even then the access isn't great," he said.
"We've just tried to come down one way round into Fordgate and I think the water is probably a bit too deep. A couple of local farmers advised us that one route we were looking at to come down is at least 3ft, probably more."
Across Devon and Somerset, fire crews rescued 14 people from flood water overnight.
The storm damaged the railway at Dawlish after a part of the sea wall collapsed and left the tracks suspended in mid-air.
First Great Western said the line between Exeter St Davids and Plymouth was closed, and Network Rail estimated it could take at least six weeks to repair.
Network Rail's Robin Gisby said: "We haven't been able to do a proper inspection yet. What we will do in the next 48 hours is protect it against what we understand will be a further big storm on Saturday night."
He said he was concerned that the 80m section of wall that had gone was leaving the rest of the line exposed.
Limited services were running between Plymouth and Penzance, with rail replacement services due to be provided from Thursday.
Tim Jones, from the Devon and Cornwall Business Council, said the destruction of the line - which connects Devon and Cornwall to the rest of the UK - would cost the region's economy between £1m and £2m a day.
Despite the problems expected by businesses, the managing director of St Austell Brewery, James Staughton, said of the region: "We are very resilient, we are very open for business and I'm sure we'll find a way round it, but we need a lot of government support to make it happen."
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