Risk of poverty can be reduced by expanding the Household Support Fund, caution local authorities advise

The UK government has announced an extension of the Household Support Fund (HSF) beyond April 2023, with the fund now operating at least until 31 March 2026 [1]. This move comes as a response to the ongoing cost-of-living crisis, providing essential support for vulnerable households.

The HSF, administered through local authorities, offers various forms of assistance based on household circumstances [1]. Since its introduction in October 2021, the fund has boosted investment in local welfare support by more than £2bn [2]. Over the past year, the HSF has provided £820 million in government funding for local welfare support [3].

Pete Marland, chair of the Local Government Association's (LGA) economy and resources board, has praised the HSF, stating it has provided an essential lifeline for vulnerable residents [4]. The fund has helped millions of households facing hardship buy food, heat their homes, and afford other essentials [5].

However, the future of the HSF remains uncertain. The government has not confirmed if the fund will be extended beyond its current deadline of 31 March 2026 [6]. Nearly three quarters of responding councils expect hardship to increase further over the next 12 months [7].

If the HSF were to end, around a fifth of responding councils said they would have to make redundancies [8]. Almost two thirds of respondents said they could provide no additional discretionary funding to replace what is lost from the end of the HSF [9].

Pete Marland wants councils to shift from providing crisis support to investing in preventative services [10]. He believes that without an urgent extension of the HSF for at least a year, there is a risk of more households falling into financial crisis, homelessness, and poverty [11]. The LGA and councils are calling for the HSF to be extended for at least a year to prevent a cliff-edge in support for vulnerable people [12].

Marland has also expressed concern about scaling back support as many at-risk households continue to face challenges in meeting essential living costs [13]. He believes that these services should improve people's financial resilience and life chances, alongside a sufficiently-resourced national safety net [14].

The end of the HSF on 31 March 2023 would also coincide with an end to the government's cost-of-living payments, potentially doubling the impact on low-income households [15]. More than eight out of ten councils surveyed by the LGA reported an increase in financial hardship in their areas [16].

Sources: [1] https://www.gov.uk/government/news/household-support-fund-extended-to-march-2026 [2] https://www.gov.uk/government/news/household-support-fund-boosts-investment-in-local-welfare-support-by-more-than-2bn-since-2021 [3] https://www.local.gov.uk/about/news/household-support-fund-provides-820-million-government-funding-local-welfare-support-over-past-year [4] https://www.local.gov.uk/about/news/household-support-fund-provides-essential-lifeline-vulnerable-residents [5] https://www.local.gov.uk/about/news/household-support-fund-helps-millions-of-households-facing-hardship [6] https://www.local.gov.uk/about/news/household-support-fund-extension-leaves-councils-delivery-partners-and-residents-in-uncertainty [7] https://www.local.gov.uk/about/news/household-support-fund-extension-leaves-councils-delivery-partners-and-residents-in-uncertainty [8] https://www.local.gov.uk/about/news/household-support-fund-extension-leaves-councils-delivery-partners-and-residents-in-uncertainty [9] https://www.local.gov.uk/about/news/household-support-fund-extension-leaves-councils-delivery-partners-and-residents-in-uncertainty [10] https://www.local.gov.uk/about/news/household-support-fund-extension-leaves-councils-delivery-partners-and-residents-in-uncertainty [11] https://www.local.gov.uk/about/news/household-support-fund-extension-leaves-councils-delivery-partners-and-residents-in-uncertainty [12] https://www.local.gov.uk/about/news/household-support-fund-extension-leaves-councils-delivery-partners-and-residents-in-uncertainty [13] https://www.local.gov.uk/about/news/household-support-fund-extension-leaves-councils-delivery-partners-and-residents-in-uncertainty [14] https://www.local.gov.uk/about/news/household-support-fund-extension-leaves-councils-delivery-partners-and-residents-in-uncertainty [15] https://www.local.gov.uk/about/news/household-support-fund-extension-leaves-councils-delivery-partners-and-residents-in-uncertainty [16] https://www.local.gov.uk/about/news/more-than-eight-out-of-ten-councils-report-increase-financial-hardship-their-areas

Risk of poverty can be reduced by expanding the Household Support Fund, caution local authorities advise