The Local Government Association (LGA) has welcomed the chancellor’s announcement on Thursday (26 May) to increase the Household Support Fund by £500m and extend its availability to March 2023.
The fund is distributed to local authorities in England to help vulnerable people meet daily needs such as food, clothing, and utilities. A share of the funding is also provided to the devolved administrations in Scotland, Wales and Northern Ireland.
Rishi Sunak announced the changes to the fund as part of the government’s £15bn support package, which is aimed at helping people who are struggling with the cost-of-living crisis.
Cllr James Jamieson, LGA chairman, said: “We are pleased the chancellor has acted on calls by the LGA, councils and partners to increase and extend the Household Support Fund to the end of this financial year.”
The increase in the Household Support Fund brings the total amount available to £1.5bn.
Jamieson added: “These measures must be accompanied by a longer-term solution to addressing the wider cost-of-living pressures, which are not going to end any time soon, and reducing the need for further emergency support.
“To reduce the need for short-term crisis support, there needs to be a consensus on how we move forward and build resilience through our wider welfare system, which includes not just benefits but employment support, housing, health and financial inclusion.”
The chancellor’s emergency package will be partly funded by a £5bn windfall tax on oil and gas companies.
The support also included additional payments of £650 for people on the lowest incomes and a £400 rebate on energy bills for all families in the autumn.
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