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

Wednesday March 25th, 2020

£500 million Hardship Fund will provide council tax relief to vulnerable people and households to help those affected most by coronavirus.Funding

  • Local Government Secretary confirms £500 million Hardship Fund will provide support, including council tax relief, in 2020 to 2021 to those who need it most
  • Guidance released today (24 March 2020) provides clarity for councils on how to allocate the funding following its announcement at Budget
  • The funding will enable further reductions in council tax for working age people in receipt of Local Council Tax Support

Local Government Secretary Rt Hon Robert Jenrick MP has confirmed the government’s £500 million Hardship Fund will provide council tax relief to vulnerable people and households to help those affected most by coronavirus.

The government has set out that 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 to 2021 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 to 2021.

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 they have the support they need.

The guidance published today provides clarity to councils on how they can quickly provide support to those households which require support.

The announcement comes after the government confirmed councils will receive an additional £1.6 billion 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.

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