Sheffield Council will keep its council tax support scheme running into 2018.
The authority will continue to offer discounts of up to 77 per cent to working people on low incomes, despite facing continuing budget pressures.
The support extends to a 100 per cent discount for qualifying pensioners.
Last year the scheme helped about 52,000 households.
Cabinet member for finance and resources Ben Curran said: “We all know that the government cuts are hitting people hard. That’s why we set up our council tax support scheme, to help people on low incomes manage when the government abolished council tax benefit.
“Despite continued austerity, we will never balance our books on the back of the poor and I am proud that we are not planning any cuts to this scheme.
"It is important to protect people who need it the most. We know lots of people are struggling to pay their bills and that in-work poverty is a bigger issue than ever. We also know that if we gave less support more people would fall into arrears and that wouldn’t help them, or the council’s finances.”
The council asks people to contact them if they are struggling to pay their tax.
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