The Household Support Fund must be extended for at least six months to avoid an “impending cliff-edge” in support, the Local Government Association (LGA) has said.
The vast majority (94%) of councils who responded to an LGA survey said the fund, which helps people struggling to buy food, pay bills and cover other essentials and is due to expire at the end of September, should continue.
Nearly 60% of council respondents said they would not be able to provide any additional funding for local welfare assistance if the fund ended as currently scheduled, and just 1% said they would be able to match the lost funding.
Some 84% of councils said they expected demand for welfare assistance to increase over the winter months, while 67% reported that local welfare funding, which is administered by councils, would decrease if the Household Support Fund was withdrawn.
According to the LGA survey, more than three quarters of councils think a successor scheme should replace the fund from March 2025. Longer-term funding settlements, a focus on crisis prevention and reducing dependency, and greater flexibility to decide how the funding is spent, were the most common requests from councils, the survey found.
The LGA noted the “essential role” the Household Support Fund plays in tackling disadvantage and supporting communities, and said councils are “deeply concerned” about the fund ending as winter approaches, “at a time when many residents are most at risk of falling through the gaps into hardship and placing increased pressure on already overstretched public services, such as health and social care”.
While calling for a short to medium-term extension of the fund, the LGA said a transition into a “longer-term preventative and sustainable approach” was also needed “to help prevent people from falling into poverty and hardship in the first place”.
Pete Marland, chair of the LGA’s economy and resources board, said: “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.
“As our survey shows, services including grants for energy and food, supplying essential furniture and white goods, paying for energy efficiency improvements, funding food banks, offering food vouchers for children during school holidays and employment and financial advice are all at risk of being lost and irreplaceable.
“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.”
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