The Local Government Association (LGA) has sounded the alarm that six in 10 local councils will struggle to offer extra welfare support once the Household Support Fund ceases later this year. It comes amid fears of a bleak Christmas and wintertime. With more than four out of five councils in England bracing for a surge in welfare support requests this winter, the looming end of government aid for vulnerable families is causing concern.
The warning comes on the heels of Chancellor Rachel Reeves’s declaration last month that the winter fuel allowance for pensioners would be means-tested as part of a suite of strategies to plug what she described as a £22 billion shortfall in public finances. The Household Support Fund (HSF), set up by the previous Conservative administration in 2021 to assist individuals grappling with the costs of food, bills, and other basic needs, is slated to wind down at September’s close, the LGA reports.
The association is calling for an extension of at least six months to prevent a drastic “cliff-edge” reduction in support. According to an LGA survey, a whopping 94% of councils are in favour of continuing the fund, while nearly 60% admitted they wouldn’t have the means to provide additional local welfare assistance if the fund were to terminate in September.
A mere 1% of councils felt confident they could compensate for the impending financial void.
An overwhelming 84% of survey participants are bracing for a heightened demand for welfare assistance throughout the winter, while a sizeable 67% foresee a shrinkage in local welfare funds, controlled by councils, if the crucial Household Support Fund (HSF) were to end.
The appeal from over three-quarters of the nation’s councils has been clear – they are in favour of a successor scheme that will take the place of HSF come March 2025.
Alarm bells are ringing at the Local Government Association (LGA) regarding the grim prospect of the fund drying up as the chilly months approach, a time notorious for plunging residents into greater financial distress and exacerbating the strain on already overstretched vital community services, including health and social care.
The pressing needs voiced by councils encompass longer-term financial assurances, a proactive stance on averting fiscal crises and lessening reliance on assistance, alongside augmented leeway in determining fund distribution.
A new lease of the fund, according to the LGA, would not just provide reassurance and stability to those grappling to meet the cost for basic needs like nourishment, bills, and other fundamental requirements. It would also empower councils with the foresight needed to maintain staff and volunteer networks essential for providing indispensable aid.
Councillor Pete Marland, who helms the LGAs Economy and Resources Board, emphasised: “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.”
In response, a Government spokesperson has stated their commitment to eradicating poverty by ensuring rewarding employment and enhancing support systems to facilitate access to quality jobs. “This Government will tackle the scar of poverty by making sure work pays and improving support to help people into good work.”
Additionally, they assured that further information regarding the Household Support Fund will be disclosed soon, saying: “More details on the Household Support Fund will be set out in due course.”
