Welsh councils will receive an extra £2.8m to help cover the increased demand for the council tax reduction scheme.
The funding will help cover the cost of more low income households claiming for the scheme as a result of COVID-19.
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 today 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.'
