Charities that help people manage debts have been urged to apply for a share of a £2.3 million fund set aside by HM Revenue & Customs (HMRC).

Non-profit making organisations have been invited to make a bid for a portion of the cash in order to provide aid to vulnerable people who are struggling to handle their finances.

They must offer services that advise people on how to reduce their debts and ensure they are claiming the appropriate benefits and tax breaks.

Around £1.05 million will be available through the fund next year and the remaining £1.28 million has been earmarked for 2010.

The deadline for the latest round of applications is November 12th.

"Many vulnerable people don't claim benefits that they are entitled to. This money will assist the people who need it most," commented spokesman Derek Tilstone.

Those struggling to pay their mortgage were given welcome news this week when the Bank of England cut interest rates.