HM Revenue and Customs has offered a lifeline to 17 charities working with people needing tax advice, pledging a commitment of £2m a year for the next four years.

The grants, announced today, have been distributed among charities operating across the UK, each of which will be funded for a specific amount each year for the whole four years. TaxAid is the biggest beneficiary of the grants, receiving £485,000 a year for two different programmes working with vulnerable people and their tax.

Funding has been given to organisations both directly providing support, and organisations which are able to train other organisations to work in the field of tax advice. The funding is not limited to charities, but to all sorts of voluntary and community sector groups, including social enterprises and mutuals.

Stephen Banyard, acting director general for personal tax at HMRC, said that the grants are designed to help the hardest to reach people.