The funding from the Next Steps Accommodation Programme was announced on Thursday by Housing Secretary Robert Jenrick as part of the government’s commitment to ending rough sleeping.
Shropshire Council's housing services manager said the £123,500 awarded to the authority will enable it to increase workers helping some of the county's most vulnerable people find permanent accommodation.
Laura Fisher said: "We are really excited about this funding and the opportunity it gives us to carry on the amazing work we have done in regard to reducing homelessness in Shropshire.
"We are aware that the reasons for rough sleeping are complex, but are committed to eradicating rough sleeping in Shropshire.
“Shropshire will receive £123,500 to enable us to increase the number of support workers we have to work with our most vulnerable people, and also to access the social and private rented market through the use of landlord incentives such as increased levels of deposits, rent in advance and guaranteed rent.”
Shropshire Council is one of 274 local authorities which will receive a share of the £91.5 million fund to ensure interim accommodation and support for the most vulnerable people.
The scheme aims to help people into the private rented sector, secure interim accommodation such as supported housing and assess the wider support people need in order to rebuild their lives.
Shropshire Council has also put in a bid for a share of the further £161 million fund intended to provide more than 3,300 additional supported homes this year for those sleeping rough or currently housed in emergency accommodation.
The funding will be used for additional bed spaces within Shropshire. The council is currently waiting for an announcement regarding this funding.
Meanwhile, Telford & Wrekin Council has been awarded almost £175,000 as part of the Next Steps Accommodation Programme.