Image © Shutterstock
Councils said the expiry of the Household Support Fund in six weeks’ time would leave vulnerable residents struggling to pay for food, energy and other essentials over the winter.
The Local Government Association has been campaigning for the fund – launched three years ago by the Department for Work and Pensions and administered by councils to directly help those most in need – to be extended.
In a survey carried out by the association, 59% of councils said they would be unable to replace welfare funding lost if the scheme were withdrawn, while a further 11% said they would also be reducing their own discretionary welfare support in the face of intense financial pressures.
Asked about the impact in their areas of the fund’s closure, councils said it could mean the end of free meals vouchers during school holidays, reduced funding for the emergency supply of food and personal items and welfare support being cut back to just a crisis line with no financial assistance.
Over four-fifths of councils expected demand for welfare support to increase over the winter months, and more than three-quarters called for a successor scheme to be implemented.
If a replacement scheme were put in place, it should include longer term funding settlements, a focus on crisis prevention and the reduction of dependency, and greater flexibility for authorities to decide how the funding is spent, councils said.
Earlier this year, the Work and Pensions Committee called for the Household Support Fund to become a permanent feature of the social security landscape to allow local authorities to better plan their provision of discretionary support.
An additional £500m was allocated to the fund as part of the Spring Budget to allow it to operate until the end of September.
Pete Marland, chair of the LGA’s economy and resources board, described it as a vital safety net for vulnerable residents struggling with the cost of living.
“Irreplaceable” grants for energy and food, the funding of foodbanks and the provision of essential furniture, white goods and energy efficiency improvements were all at risk of being lost if the scheme ended, he said.
“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,” said Marland.
“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.”
This should be underpinned by a sufficiently resourced national welfare system, he added.
In response, a government spokesperson said more details on the Household Support Fund would be set out in due course.
“This government will tackle the scar of poverty by making sure work pays and improving support to help people into good work,” he said.
