South Kesteven District Council will be responsible for making the one-off payment to eligible residents who apply for the funding.
The Cabinet Member for Communities, Health and Wellbeing, Cllr Annie Mason, said: "We have come so very far and many have lost so much. It is so important for people to self-isolate when they have tested positive for Covid-19 as this is one of the most powerful ways to control transmission of this dreadful virus.
"People can remain infectious to others for up to ten days after developing symptoms. It can also take up to 14 days to develop symptoms after catching Coronavirus, and during this time the virus can be passed on without realising - even if people are not showing any symptoms.
"By self-isolating, individuals can help prevent their loved ones, family, friends and our community neighbours from contracting Covid-19, as well as helping to protect our vital health services."
Because this can cause financial pressure for those on low incomes and the self-employed, the Government has set up the Test and Trace Support Payment to help them if they cannot work during their self-isolation period.
People who have been furloughed can claim the payment, provided they meet all the eligibility criteria.
To be eligible for the payment applicants must:
- Have been asked to self-isolate by NHS Test and Trace either because they have tested positive for Coronavirus or have recently been in close contact with someone who has tested positive
- Be employed or self-employed
- Be unable to work from home and lose income as a result
- Be currently receiving Universal Credit, Working Tax Credit, income-based Employment and Support Allowance, income-based Jobseeker's Allowance, Income Support, Housing Benefit and/or Pension Credit.
Cllr Mason said: "If you are contacted by NHS Test and Trace, it is not only a legal requirement that you self-isolate, but it can help prevent the spread of Covid-19 by breaking the chain of infection. For many people, however, particularly those on low incomes, the financial implications of not being able to work due to self-isolation can be severe."
Applicants must have:
- Notification from NHS Test and Trace asking them to self-isolate, which will include a unique ID number
- A bank statement
- Proof of employment, or, if they are self-employed, evidence of self-assessment returns, trading income and proof that their business delivers services that cannot be undertaken at home
Payments can be backdated for people who have been notified that they have to self-isolate on or after September 28. Applications must be made within 14 days of an isolation period ending. The scheme will run until 31 January 2021 and will be continually reviewed.
Applications can be made from Monday (12 Octber) by going to www.southkesteven.gov.uk and clicking on the Coronavirus link where more information is also available.