In a bid to alleviate the Cost of Living crisis, thousands are set to receive a free £400 payment. Shropshire Council has been granted an additional £2.1 million from a scheme designed to assist those struggling with household essentials such as energy and water bills, food, and other necessities.

The council, in collaboration with partner organisations, is working diligently to ensure that those most in need benefit from this funding, following guidelines set by HM Government.

Approximately 3,000 low-income households will receive a £400 payment, Birmingham Live reports.

Eligible households must be receiving council tax support and have a dependent child living at the property, which should be the child's main residence, according to the local authority. The council stated: "Those who meet this criteria will be identified by Shropshire council and will be sent a letter with instructions on how to apply for the payment."

Additionally, an award will be made to working-age individuals receiving Council Tax Support but who are required to pay 20 percent of their council tax liability before their entitlement is calculated.

These customers could receive a maximum payment of up to £60 towards their outstanding liability, depending on their remaining balance after the Council Tax reduction scheme, discounts and disregards have been applied.

"These claimants will be identified by the Council and the award automatically applied to their council tax account. There will be no application process for this support."

This comes as the government extended the useful scheme earlier this year. Under Chancellor Jeremy Hunt, fresh support measures have been introduced.

The Tory-led government has delegated funds to local councils who will distribute it amongst struggling households.