The government has announced the details of a second year of council tax freezes, designed to help families cope with the rising cost of living.
Local Government secretary Eric Pickles said an extra £675 million will be available for councils in England so that they can avoid having to put up council tax in 2012-13 following a zero per cent rise in 2011-12.
Any local authority that agrees to cap or reduce council tax prices will receive a government grant for the equivalent of the money they would have generated had taxes gone up by 2.5 per cent.
It means that the average band D home in England could save an extra £72 a year.
Mr Pickles said the move will leave millions of people with "more of their hard earned cash in their pockets".
"Last year every council signed up to our council tax freeze, but with many families still facing difficult times we're rolling over our successful scheme so councils can keep a lid on bills," he added.
In 2010-11, the average band D property owner paid £1,439 in council tax, compared to £688 in 1997-98.
This comes after Mr Pickles said last month that families are to be offered the chance to pay their council tax bills over 12 months rather than the current ten.
He told the Telegraph it is a "move to help 'middle England' and hard-pressed families up and down the country".
Use the Myfinances.co.uk comparison tables to keep your household bills down