The funding comes from the government’s £500million hardship fund, which aims to provide council tax relief to help vulnerable people and households most affected by coronavirus.
The government has said it can be used to reduce the council tax bills of working age people already receiving council tax support and to provide further discretionary support to vulnerable people.
The council is in the process of looking at the detail and at how these additional reductions can be applied to bills as soon as possible.
Councillor Steve Clark, cabinet member for finance, said:
"During this national crisis, it’s important we do all we can to support our most vulnerable residents and those who are struggling to manage their finances.
"We welcome this funding from the government and we will pass this onto eligible households as quickly as possible.
"These are uncertain times for us all but it’s really important to stress that this funding is available for those who are in the most financial difficulty. Those who can continue to keep up their payments are urged to do so.
"We’re also in the process of introducing a raft of measures to support businesses, which hopefully will help them continue to pay and support their employees."
Last week the council announced plans to stop bailiffs and court actions for payment defaults including council tax, business rates and council rents.