Chancellor Rishi Sunak announced an extra £500m for the Household Support Fund when he delivered his Spring Statement, which made little additional mention of local government.
The fund, which provides short-term support to low-income households facing financial hardship and is distributed by local authorities, will now double in size to reach £1bn.
Sunak said he wanted to “do more to help our most vulnerable households with rising costs” as they needed targeted support. “Local authorities are best placed to help those in need in their local areas,” he said.
Sunak confirmed that local authorities in England would receive an extra £421m from April, while the devolved administrations will receive an additional £79m through the Barnett formula.
Kirsty Stanners, head of policy and technical at CIPFA, said that the new funding would be “good news for many families”, but added: “This help will pale in comparison to the expected £10bn erosion of benefits due to soaring inflation over the coming year.
“This spring statement is one designed to help us weather the current economic storm and provides some quick relief. The Budget in the autumn needs to provide long-term, sustainable and joined-up solutions for the economy, the climate and the poorest in society.”
Shaun Davies, chair of the Local Government Association’s Resources Board, said the additional funding was a “positive step”, but said that it did not fully address underlying cost-of-living pressures.
“Councils also want to work with government on an effective long-term solution to preventing poverty and disadvantage that moves away from providing crisis support towards improving life chances.”
The LGA also called for “urgent clarity” from the government on local government funding reforms.
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