Government confirms £500m hardship fund will provide council tax relief for vulnerable households

posted on 31 March 2020, updated on 24 March 2020

Local Government Secretary Robert Jenrick has confirmed the government’s £500m hardship fund will provide council tax relief to vulnerable people and households to help those affected most by coronavirus. 

The hardship fund, which was announced by the chancellor at Budget, will go to local authorities in England to enable them to reduce the 2020/21 council tax bills of working age people receiving local council tax support. Councils will also be able to use the funding to provide further discretionary support to vulnerable people through other support arrangements such as local welfare schemes.  

The hardship fund will support those in receipt of local council tax support schemes by reducing their council tax liability for 2020/21.

People in receipt of local council tax support schemes are recognised as the most vulnerable to changes in income, and the government is committed to ensuring that they have the support they need. The guidance published today provides clarity to councils on how they can quickly provide support to those households that require support. 

The announcement comes after the government confirmed councils will receive an additional £1.6bn in funding to enable them to respond to other COVID-19 pressures across all the services they deliver, including stepping up support for the adult social care workforce and for services helping the most vulnerable, including homeless people.

The guidance can be found on the GOV.UK website.

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