Councils in Wales will receive an extra £2.6m to meet the increasing demand for Council Tax Reduction Schemes.
More households have been applying to the scheme due to reduced income or unemployment as a result of the pandemic.
Finance minister Rebecca Evans, said: 'The additional funding I am announcing today will provide local authorities with the financial reassurance they need to continue to support those who need it most through our Council Tax Reduction Scheme.'
The Welsh Government is also working with the Welsh Local Government Association (WLGA) and local authorities to understand the longer term effects of increased demand on the scheme.
