New update on £200 payments going into bank accounts for cost of living
An update has been issued on new £200 payments that will be going into bank accounts to help with the ongoing cost of living crisis. The Department for Work and Pensions added £421 million into the Household Support Fund so that it could continue for six more months until the end of March.
Dudley Council announced it would use 15 per cent of its £2.6 million cash allocation for one-off £200 payments, with the rest going to frontline services at the council or in the voluntary sector. It said: "The Household Support Fund is there to help low-income households, including families, pensioners, unpaid carers, care leavers and disabled people. It provides immediate help for those who are struggling. This could include help with energy, water, broadband and phone bills, as well as other essentials such as food, clothing, and hygiene products. The fund can also assist with transport-related costs such as car repairs, buying a bicycle or paying for fuel."
Officials at the council reopened the scheme for applications on January 22 but issued an update that they had closed it at the end of the same day. Most people applied successfully through the online link, but a small number called the council to report difficulties with the process, so their eligibility was assessed over the phone.
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The cash will go directly into people's accounts within two to four weeks, the council confirmed. To have been eligible for the £200 payments in Dudley, you must live in the borough, have less than £2,000 in household savings, and have a household income of less than £40,000 a year (or £30,000 per year for a single occupancy household). In addition, you won't have been eligible if you already received a payment between April 1 and January 21.
Dudley Council said: "Once the process is complete, we will have approved a £200 grant, on a first-come, first-served basis, to 1,968 applications. We received 1,921 online applications. The rest of the money was reserved for us to support customers who had difficulties claiming.
"People who received cash through the Household Support Fund since April 1, 2024, were not entitled to receive the £200 payment in this round. This was publicised in advance. For the first time, previously successful applicants were not able to apply online. This will have created frustration amongst those who applied again, but it meant that the process was quicker for those who were able to apply. It also enabled us to keep the scheme open for longer.
"Anyone who moved home after April 2024 into a property where a previous resident received the Household Support Fund was unable to apply on the online system. However, they would have been given the message on the website that, should this error occur, they should contact the Dudley Council call centre."
Officials have also urged people to watch out for scams inviting them to apply for payments, allowances, or loans from their local Household Support Fund. Some residents have reported receiving these phone calls from fraudsters trying to take advantage of the vulnerable and needy, but council bosses said, "We will not contact you and ask you to make a claim for the Household Support Fund in Dudley."
Birmingham's allocation from the Household Support Fund has been paused until March so that organisers can respond to all the existing applications.
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