60% of councils unable to provide support from next month

According to a recent study conducted by the Local Government Association (LGA), more than four out of five councils in England expect more demand for welfare support over the winter.

The Household Support Fund (HSF), introduced by the previous government in 2021, helps people struggling to pay bills, buy food and cover other essentials but is expected to finish at the end of September, the LGA said.

We are under no illusion as to the scale of the challenge we have inherited from the Conservatives after more than a decade of low growth and a £22 billion black hole in the public finances.

That’s why we are taking the tough decisions now to fix the foundations of our economy.

— Rachel Reeves (@RachelReevesMP) August 15, 2024

Chancellor Rachel Reeves also announced last month that the winter fuel allowance for pensions would be means-tested as she tries to fill a £22 billion black hole in public finances.

This morning, the Scottish government confirmed it will follow the UK government in no longer providing winter fuel payments to all pensioners.

The LGA is calling for the HSF to be extended for at least six months to avoid a "cliff-edge" drop in support.

A total of 94% of councils who responded to an LGA survey said the funds should continue.

Nearly 60% said they would not be able to provide any additional funding for local welfare assistance if it ends in September.

Recommended reading:

Rachel Reeves announces 'painful' public spending cuts

Rachel Reeves says Government determined to save Hitachi

Age UK condemns Rachel Reeves' pension benefit cuts

"The Household Support Fund is a vital safety net"

Councillor Pete Marland, chair of the LGA's economy and resources board, told Sky News: "The Household Support Fund is a vital safety net for vulnerable residents struggling with the cost of living, which councils are using to target help to those most in need, but is currently due to run out in a matter of weeks.

"We are approaching another cliff edge before the current fund runs out and we urge the Government to urgently extend this for at least another six months, to help support those most affected through the winter when energy bills in particular are expected to be higher.

"Ultimately, councils want to see a shift away from short-term, crisis support so they can instead invest in preventative services which improve people's financial resilience and life chances. Crucially this must be underpinned by a sufficiently-resourced national welfare system."

A government spokesman said: "This government will tackle the scar of poverty by making sure work pays and improving support to help people into good work.

"More details on the Household Support Fund will be set out in due course."