As an employer, if the Council provides homeworking expenses for your employees, you have certain tax, National Insurance and reporting obligations.
The Council as the employer has the same health and safety responsibilities for staff working from home as they do for those in an office. The Health and Safety Executive has useful information that could inform your approach.
From the 1st of April the tax free amount for home working has increased to £6 per week.
Read more from the Government guidelines here.