Fund for councils to help vulnerable extended after support cliff edge warning

A fund to help struggling households with bills and essentials has been extended to cover the winter period after councils warned that the most vulnerable were facing a support “cliff edge”.

The Household Support Fund, which was due to expire at the end of September, will run for another six months in what the Government described as a multimillion-pound “boost” for local authorities.

Campaigners and charities welcomed the news although some warned it is the “bare minimum” needed and that it “puts a plaster on poverty”.

The Department for Work and Pensions (DWP) said the £421 million extension provides certainty to councils across England through to April 2025.

An estimated £79 million will be given to devolved administrations via the Barnett formula, with governments in Scotland, Wales and Northern Ireland being able to choose how to distribute the additional funding, the department said.

The confirmation of the Household Support Fund extension comes after the condemnation of the Labour Government for axing winter fuel payments for millions of pensioners.

Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer have faced criticism from opponents, campaigners and some of their own MPs over the decision to means-test the payments worth up to £300.

Commons Leader Lucy Powell said the UK could have faced a run on the pound and an economic crash if Ms Reeves had not axed the payments to fill a black hole in the public finances.

DWP has said pensioners and others struggling to heat their homes or afford other essential items should contact their local council to see what support may be available to them, with details on the latest funding via the Household Support Fund to be set out in the coming weeks.

Last month the Local Government Association (LGA) said an overwhelming majority of councils (94%) wanted the Household Support Fund to continue, while nearly 60% confirmed they would not be able to provide additional funding for welfare assistance if it came to an end.

Pete Marland, chairman of the LGA’s economy and resources board had described the fund as a “vital safety net for vulnerable residents struggling with the cost of living”.

The Government said the fund can be used by councils to go beyond emergency support, including working with local charities and community groups to provide residents with key appliances, school uniforms, cookery classes, and items to improve energy efficiency in the home.

Ms Reeves, said: “The £22 billion blackhole inherited from the previous governments means we have to 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.”

Work and Pensions Secretary Liz Kendall, 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.

“At the same time, we are taking action to fix the foundations of our country through our plans to grow the economy, make work pay, and Get Britain Working again.”

The Salvation Army said the funding has been “a lifeline that’s helped people keep the lights on and put food on the table in an emergency, but it only puts a plaster on poverty”.

The End Fuel Poverty Coalition said it is “the bare minimum the Government needed to do this winter and it is a positive first step that ministers have indicated it will continue”.

The coalition added: “But as the Winter Fuel Payment axe plunges more pensioners into fuel poverty, the Fund may prove to be inadequate as more vulnerable older people turn to local authorities for help and assistance.”

Published: 02/09/2024 by Radio NewsHub