COST OF LIVING

Will the Household Support Fund be extended in the spring Budget?

First published on Friday 23 February 2024

Jeremy Hunt/Pound coins and a house

There are calls from local councils and children's charities across the country to extend the Fund for at least a year to avoid a 'major gap in support'

There are less than two weeks left until the Chancellor, Jeremy Hunt gives his Spring Budget.

Many families are hoping he will announce an extension to the Household Support Fund (HSF) as he speaks to Parliament about the government's spending plans.

The HSF is a scheme funded by the Department for Work and Pensions (DWP) that has provided local councils with money to help out their low-income residents.

The Fund has been extended four times already and there have been calls from councils, organisations and charities across the country for the Chancellor to extend it for a fifth time in his Spring Budget, with millions of families still in need of support.

It hasn't yet been announced if this will be extended or if Mr Hunt will announce it in his Spring Budget on 6 March – but it's hoped it will be.

'Risk of households falling into homelessness'

Councillor Peter Mason, from Ealing Council, said they are urging the government to extend the HSF so they can 'continue to provide food, warm spaces, and one-off payments for essential items for residents.'

Councillor Pete Marland, chair of the Local Government Association's economy and resources board, agreed, stating: 'Councils are united in the view the Household Support Fund must be continued beyond the end of March for at least a year.

'Demand for local welfare support remains at record levels with the cost of energy, housing and other essentials remaining exceptionally high relative to income and continuing to rise.

'Without an extension, there is a risk of more households falling into financial crisis and homelessness.'

'Major gap in support'

And it's not just councils who believe an extension of the Fund is needed.

Children's charity, Barnados has written an open letter to Mr Hunt which has been signed by 120 organisations and charities such as Save the Children, Child Poverty Action Group, National Education Union and Food Matters.

The letter explains that not extending the HSF past its current end date of 31 March 'will leave a major gap in support' that local councils and the voluntary sector won't be able to fill.

The letter reads: 'Ahead of the Spring Budget, we are urging you to extend the Household Support Fund for at least the next year, so that families facing hardship, hunger, and unexpected costs are able to get the help they need in their communities.'

Bernados is urging Brits to write to their MP to ask for the HSF to be extended.

'Under review'

Netmums spoke to the DWP about the potential extension. A spokesperson stated: 'We continue to keep all existing programmes and cost-of-living measures under review.

'People in England are encouraged to speak to their local council about the help available in their area.'

What is the Household Support Fund?

The Household Support Fund is a scheme in which the DWP has allocated £842 million worth of help since it first began in 2021.

Councils can apply for a portion of the money which can be spent on helping struggling families in their area. This is given out via cash grants, supermarket vouchers, free school meals, energy bill assistance and more.

Eligible applicants have to apply for the Fund through their local council, each of which sets out its own eligibility criteria and how it intends to spend the money.

This has been available for some of the poorest families in each district, providing a lifeline during the cost of living crisis.

The scheme has so far been extended four times and is due to close on 31 March this year.

Can I still get help through the Household Support Fund?

Many councils do still have funding left and will be operating until 31 March, or until the funding runs out – whichever comes first.

However, many councils have used up their funding and have closed their HSF doors early.

The following councils are still providing the scheme for the time being:

In North Yorkshire Council you could get vouchers worth £450 to be used at Sainsbury's, Aldi, Morrisons and more.

In Cambridgeshire, you could get up to £110 worth of help.

West Sussex County Council is providing supermarket vouchers in varying amounts.

If your local council is not here, check with your local authority to see what help might be available to you.

What is the Spring Budget?

The Spring Budget follows the Autumn Statement, where financial plans are put forward by the Chancellor for the upcoming tax year to set out the government's spending plans.

In his 2023 Autumn Statement, Mr Hunt announced an increase to the National Living Wage and to all benefits payments, such as Universal Credit and Child Benefit.

In his Spring Budget, Mr Hunt will provide an update on these pledges, and how the government will be proceeding with them for the year as well as any new financial plans.

While it is not yet certain what Mr Hunt will announce in the Budget, it's thought he could also scrap the High Income Child Benefit Charge (HICBC), reduce beer tax and make permanent changes to Stamp Duty.

Read more about it here.

More money help

Need further help and advice? You'll find details on all the benefits and entitlements you may be able to claim via the Netmums' Cost of Living hub.

There you'll find lots of Government-based advice on cash you might be entitled to, plus all the dates when you can expect the latest Cost of Living payments and other allowances to land in your bank account.

There are also top tips from the Money Saving Expert, Martin Lewis, as well as brilliant ideas for saving money on everything from your weekly shop, to that well-deserved holiday.

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