Anecdotal evidence suggests people were unlawfully subletting their properties in the tower and are reluctant to come forward.
Grenfell Tower residents who were illegally subletting will not face prosecution, Communities Secretary Sajid Javid has said.
The Cabinet Minister said the move was guided by a concern that “loved ones still missing are identified”.
The protection from prosecution applies to anyone coming to authorities with information about people who were in their flats at the time of the fire.
Anecdotal evidence from residents has indicated that people living in the tower block may have been unlawfully subletting their properties, and that they are reluctant to come forward and report others are missing because of the fear of reprisal.
Guidance issued by the Director of Public Prosecutions said that tenants of Grenfell Tower who were subletting their properties and who “come forward to authorities” to share information “should not face prosecution for offences under section one of the Prevention of Social Housing Fraud Act 2013”.
The Royal Borough of Kensington and Chelsea has said it will respect this guidance.
Mr Javid said: “Supporting those affected by the tragic events at Grenfell Tower has been the absolute priority of the Government.
“That includes making sure that loved ones still missing are identified.
“Therefore, I would urge those with information to come forward without fear of prosecution.”
The guidance also applies to the nearby Grenfell Walk, the Government added.
Attorney General Jeremy Wright QC said he hoped the statement would encourage more people to come forward.
“Every piece of information will help the authorities accurately identify who was in the flats at the time of the fire,” he said.
So far 100% of cladding tests carried out following the disaster, covering 181 high rise buildings in 51 local authority areas, have failed.