New Cost of Living payments as fund will run until next year

New Cost of Living payments as fund will run until next year

A fund set up to provide money for people during the cost of living crisis has been extended after plans to close it at the end of this month. The Household Support Fund was set to end on September 30, but the new Government has said it won’t be scrapped.

The fund allows local authorities to distribute cash to those struggling with the cost of energy, food and water. Ministers announced a £421million extension in England, with a further £79million for devolved administrations in Scotland, Wales and Northern Ireland.

Chancellor Rachel Reeves said extending the fund was the “right thing to do” despite the pressure facing public services. She mentioned, “The £22 billion blackhole inherited from the previous governments means we have to take tough decisions to fix the foundations of our economy. But extending the Household Support Fund is the right thing to do – provide targeted support for those who need it most as we head into the winter months.”

A Government statement advised that “Pensioners and others struggling to heat their homes or afford other essential items over the colder months should contact their local council to see what support may be available to them. Details on the latest scheme for local authorities and councils will be communicated in the coming weeks.”

Work and Pensions Secretary Liz Kendall added, “We are extending the Household Support Fund for the next six months because it is a lifeline for people who are struggling with the cost of living. The dire inheritance we face means more people are living in poverty now than 14 years ago – and this Government is taking immediate action to prevent a cliff edge of support for the most vulnerable in our society.”

At the same time, efforts are being made to grow the economy, making work pay, and Get Britain Working again. It is hoped that the extension of this fund will provide much-needed relief to those facing financial difficulties as winter approaches.

The move to extend the Household Support Fund comes as a welcome relief to many individuals and families who are grappling with the rising costs of essential goods and services. The Government’s decision to provide continued assistance demonstrates a commitment to supporting those most in need during challenging times.

As the fund remains available, people are encouraged to reach out to their local authorities to explore the support options that may be accessible to them. With ongoing efforts to stabilise the economy and address the cost of living crisis, these payments aim to provide vital assistance to individuals and households across the country as they navigate financial challenges.