More than four out of five councils expect demand for welfare support to increase over winter, just as vital dedicated funding for vulnerable households is due to run out, councils warn.
The Local Government Association says the Household Support Fund – which helps people struggling to buy food, pay bills and cover other essentials – is due to expire at the end of September and needs to be extended for at least six months to avoid an impending cliff-edge in support.
In an exclusive LGA survey, the vast majority of councils who responded (94 per cent) said the fund should continue, while nearly 60 per cent said they would not be able to provide any additional funding for local welfare assistance if the fund came to an end in September and only one per cent said they would be able to match the lost funding.
Over four fifths of respondents (84 per cent) expect demand for welfare assistance to increase over the winter months, while just over two-thirds (67 per cent) reported that local welfare funding, which is administered by councils, would decrease if the Household Support Fund (HSF) was withdrawn.
Beyond the next six months, more than three-quarters of councils said that a successor scheme should replace HSF from March 2025. Going forward, 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 LGA says the fund plays an essential role in tackling disadvantage and supporting communities while people are still experiencing the impact of the rise in living costs over the last couple of years.
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.
An extension would provide much-needed certainty and security for those who are struggling to buy food, pay bills and cover other essentials through this challenging period, and enable councils to plan ahead and retain staff and voluntary partners to deliver vital support.
While this should be extended again to help support households through the short to medium-term, the LGA says this needs to be part of a transition into a longer-term preventative and sustainable approach, to help prevent people from falling into poverty and hardship in the first place.
Cllr 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.”
