The Household Support Fund has been extended for six months until April 2025.
The government said the £421m boost for local authorities in England would “help people most in need with the cost of their energy, food and water”. Details on the latest scheme for local authorities and councils will be communicated in the coming weeks, it added.
An estimated £79m will also be given to devolved administrations via the Barnett formula.
Chancellor Rachel Reeves commented: “The £22bn 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.”
The extension avoids the “impending cliff-edge” in support that the Local Government Association (LGA) previously warned of.
The LGA said the extension was “very positive”, helping “millions of vulnerable households at a time when demand for support is expected to increase over winter”.
Pete Marland, chair of the LGA’s Economy and Resources Board, commented: “Local government stands ready to work with the government on a long-term plan for local welfare support, which shifts away from short term, crisis support so councils can instead invest in preventative services that address the underlying causes of poverty and is crucially underpinned by a sufficiently-resourced national safety net.”
London Councils said the extension was “hugely welcome news”. Anthony Okereke, London Councils’ executive member for communities, commented: “The life-changing impact of the fund is clear. In London, boroughs have used the fund to provide meals for thousands of children during school holidays, help low-income households pay for essentials such as gas bills or school uniforms, and open warm hubs to support residents struggling with heating costs.
“With so many Londoners still facing immense cost-of-living pressures, the extension of the Household Support Fund to March 2025 will boost boroughs’ ability to assist them through the winter months.
“London boroughs will also continue to engage with the government over the future of local welfare provision, making the case for long-term funding that better enables us to help those residents at risk of financial hardship.”
In 2023/24, London boroughs spent £135.7m through the Household Support Fund.
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