Councils across Wales will receive an extra £2.8m of funding in order to reduce the financial strain put on local councils by the Council Tax Reduction Scheme (CTRS).
The funds are being made available as an increasing number of households now qualify for help under the CTRS.
The main reason more households are eligible for a reduced council tax rate is that more households are earning less money over lockdown.
Welsh Finance Minister, Rebecca Evans, said:
“Whilst the coronavirus outbreak is affecting everyone, we know that it is having the most significant financial impact on some of the most vulnerable people in our society.
“The funding I am announcing will provide local authorities with the financial reassurances they need to continue to support those who need it most through our Council Tax Reduction Scheme.
“I would encourage anyone who thinks they may be eligible for help with their council tax bills to contact their council for advice.”
Councils have been under pressure financially because of coronavirus, with the IFS warning that across England there could be a £2.2bn shortfall for councils.