Applications for the one-off payments are set to open on Wednesday, September 17, with money being allocated on a first come, first served basis.
To apply, residents must live within the Dudley borough, have household savings of less than £3,000, and a household income below £40,000.
Single occupancy households should have an income of less than £30,000.
People can find more information about Household Support Fund at https://www.dudley.gov.uk/household-support-fund/
With the high demand expected, the scheme may close quickly once the funding limit is reached.
Payments will be subject to eligibility and availability, with applications taking around four weeks to process.
The funding comes from the £4.6 million allocated to Dudley Council by the Department for Work and Pensions as part of the Household Support Fund (HSF).
Councillor Andrea Goddard, cabinet member for adult social care and public health, said: “We’ve already been able to support some of our most vulnerable residents by distributing millions of pounds through earlier phases of the Household Support Fund.
“We’re pleased to once again offer one-off payments of up to £250 through our simple online application process, providing extra help for those feeling the pressure of rising living costs.
“It’s important to note that our online application scheme represents just a small portion—around 16 per cent—of how the Household Support Fund is used.”
The HSF is mainly used for supporting households experiencing financial hardship or crisis, who would otherwise struggle to buy food, pay essential utility bills, or meet other essential living or housing costs.
The majority of the funding is distributed through key council services and organisations within the voluntary sector.
The one-off payments are just one part of the broader support work undertaken by the council.