Knowsley, in Merseyside, tops the list announced by the regeneration minister Jeff Rooker.

It includes the effects of crime and the living environment for the first time. The indices are used to calculate grants for local authorities.

Liverpool, Manchester and the London boroughs of Tower Hamlets and Hackney are also in the top five.

Hart, in Hampshire, is the least deprived local authority, followed by Surrey Heath, Wokingham, in Berkshire, Chiltern, in Buckinghamshire, and Waverley, in Surrey.

The Neighbourhood Renewal Fund paid out a total of £475m in grants in 2004 and is due to allocate £525m next year before finishing in 2006.

Lord Rooker said: "The increased detail provided by this new information offers a great insight into the geographic pattern of deprivation in England as never seen before.

"From the government and local authorities to practitioners at the grass roots level, the new indices will help focus our efforts to tackle disadvantage and create sustainable communities."

The indices are calculated by assessing low income, unemployment, access to health and education, housing, crime and the environment.