The coronavirus crisis means millions of Brits are set to get £150 off their council tax bill this year.
Working age people who receive Council Tax Support will be able to get extra help, according to ministers.
The government revealed that a £500 million Hardship Fund will be launched to give support to those who need it the most.
Councils are expected to use the extra cash to reduce the bills of those eligible, those who have a bill less than £150 are likely to not pay any council tax at all.
The scheme could benefit around 2.3 million people, which does not include Scotland and Wales as council tax is devolved.
Local Government Secretary Robert Jenrick MP said today: "Providing the necessary financial support to people and families is critical at this difficult time when many people will be concerned about changes to their income.
"That’s why we’re giving local councils an additional £500 million, to ensure help is available for the most vulnerable people in our society who are struggling to pay their council tax bills.
"The Government is on your side and will do whatever takes to help."
The news comes after Prime Minister Boris Johnson announced a national lockdown, urging Brits to stay indoors.
He also announced the shutdown of all "non-essential" stores, only supermarkets and pharmacies will remain open.
In order to protect employees, he also announced the Government will pay 80% of employees salaries whilst they are not working, and if companies keep them on a payroll.
Chancellor Rishi Sunak said: “We are starting a great national effort to protect jobs. We want to look back on this time and remember how in the face of a generation-defining moment we undertook a collective national effort and we stood together. It’s on all of us.”
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