The Household Support Fund provides payments to help vulnerable residents with essential expenses such as food, utilities, and clothing. The funding is provided by central government and enables local councils to support low-income families in their area. How the money is allocated and who is eligible, varies from council to council.
Originally launched in October 2021, the HSF has been particularly useful for those struggling to afford energy and water bills, food, home essentials, and school uniforms, providing up to £2.5 billion of welfare support via local authorities. However, the HSF was set to end at the end of September, causing concern amongst anti-poverty campaigners and councils.
Ministers announced today that instead of allowing the HSF to end, they would invest £421 million in England with a further £79million made available to devolved administrations in Scotland, Wales and Northern Ireland.
The £421m extension package will provide a much-needed discretionary funding pot to struggling Local Authorities across England, who warned that six in 10 local councils would be unable to provide extra welfare support, if the Household Support Fund closed in September. The extended HSF to the end of March 2025, will provide support this winter to those struggling with the cost of energy, food, and water, many of whom are Disabled people feeling the worst effects of the continuing cost of living crisis.
The announcement was greeted with relief by charities and DPO groups like the Disability Poverty Campaign Group, co-led by DR UK and Inclusion London, who only last week wrote a letter to the Chancellor Rachel Reeves urging her not to allow the HSF to end. The extension, made by the chancellor, countered an earlier statement from the DWP that there would be no announcement until the autumn budget.
Confirming the extension, Chancellor of the Exchequer, Rachel Reeves MP, said: “The £22 billion blackhole inherited from the previous government, means we must take tough decisions to fix the foundations of our economy. But extending the Household Support Fund is the right thing to do - provide targeted support for those who need it most as we head into the winter months.”
Secretary of State for Work and Pensions, Liz Kendall MP, said: “We are extending the Household Support Fund for the next six months because it is a lifeline for people who are struggling with the cost of living. The dire inheritance we face means more people are living in poverty now than 14 years ago – and this Government is taking immediate action to prevent a cliff edge of support for the most vulnerable in our society.”
Dan White one of the co-leads of the DPCG said: “This is a modest but welcome decision by the UK Government. Ever since the previous chancellor Jeremy Hunt announced the Fund would end in September 2024, DPCG and like-minded organisations have been pushing hard for the HSF to continue, as the cost-of-living crisis deepens, and as other forms of state support are inadequate.”
“The extension is only until the end of March 2025 and the Government needs to use this time to develop longer term solutions to support Disabled people and others living in poverty. It needs to come forward with proposals to create an energy social tariff, to support the poorest households.”
“Whilst the HSF extension is welcome, it does not undo the damage being caused to millions of Disabled pensioners through the Government’s withdrawal of Winter Fuel Payments from those on low and limited incomes, who are not eligible for means tested benefits. The Government needs to shape urgent action to support Disabled people including pensioners, who will not be able to afford their energy bills.”
To apply for the household support fund, click here here.