Majority of councils unable to help those in crisis after DWP's support fund ends next month

Six in 10 councils will not be able to provide any additional funding for local welfare support if the household support fund comes to an end as in September, new polling has revealed.

The Local Government Association (LGA) has found that councils are “deeply concerned” about the fund ending as winter approaches.

Over four fifths of councils (84%) expect demand for welfare assistance to increase over the winter months, while just over two-thirds (67%) reported that local welfare funding administered by councils would decrease if the household support fund is withdrawn.

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The household support fund was extended in the Conservative government’s Spring Statement for six months, but it is currently due to expire at the end of September.

A spokesperson for the new government said: “This government will tackle the scar of poverty by making sure work pays and improving support to help people into good work. More details on the household support fund will be set out in due course.”

Councils say the fund plays an essential role in tackling disadvantage and and supporting communities, which is vital as people continue to struggle with the impact of the cost of living crisis.

Stephen Timms, Labour MP and minister of social security in the Department for Work and Pensions (DWP), has been an advocate for the household support fund.

Before he became minister he told the Big Issue that “crisis support will disappear altogether in many areas” if the fund comes to an end.

Distributed by local authorities to the country’s most vulnerable households, the fund is intended to “meet daily needs such as food, clothing and utilities”.

Funding is provided by the DWP to councils, who give support directly to those who need it most. It could be in the form of vouchers to cover the costs of food and utilities, free school meals over the holidays, or employment and financial advice.

Councillor 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”.

The LGA is calling for the household support fund to be extended for at least another six months, which three quarters of councils support.

Beyond the next six months, more than three quarters of councils said that a successor scheme should replace the household support fund from March 2025. They believe this should focus on crisis prevention and greater flexibility to decide how funding is spent.

“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,” Marland added.

“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.”

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