The additional money has been agreed by both Peterborough City Council and Cambridgeshire County Council.
Cllr Wayne Fitzgerald, city council deputy leader and cabinet member for adult social care, integrated health and public health, said financial support was needed right away.
He said: “Peterborough City Council has today agreed a 10 per cent increase in the money we pay to those organisations who provide care for the most vulnerable adults in our city – recognising the tremendous pressure they face because of coronavirus.
“This will put an additional £450,000 each month into the care sector locally and will be paid to all those organisations we contract with to supply residential, nursing and home care, extra care, supported living and direct payments to help them continue to provide care to some of Peterborough’s most vulnerable adults.
“While a proportion of this will be met by the council’s share of the additional government funding received to support additional costs of Covid-19, it certainly won’t cover it all.
“But we have taken the decision now because we know these care providers cannot wait any longer for additional support.
“The money will be paid from the beginning of next week – and it will continue to be paid initially until the end of June, after which we will review the situation.
“We will be working closely with the city’s two MPs – Paul Bristow and Shailesh Vara - to makes sure that any money we spend over and above the additional funding the Government has already given us to deal with the effects of Covid-19 can be reclaimed from Government, as we are sure that this is what they intend.”
Cllr Anna Bailey, chair of Cambridgeshire County Council’s Adult Services Committee, said: “Today I have taken the decision – backed by the leader of the council – to agree a 10 per cent increase in the fees we pay to providers of adult social care, to support them and recognise the tremendous efforts and financial pressure that they are facing in the fight against Covid-19.
“This will put an additional £1.4 million per month into the care sector locally and will be paid to all those organisations we contract with to supply residential, nursing and home care, extra care, supported living and direct payments to help them continue to provide care to some of the most vulnerable people in our community.
“I thank all our care organisations throughout Cambridgeshire and every single member of their staff for everything they are doing.”