£250 Cost of Living payments set to start being issued to UK households

UK households are being handed a free £250 cash payment in the form of Household Support Fund payouts. Under the Labour Party government, the Department for Work and Pensions ( DWP ) has extended the fund and paid out funding to local authorities.

Families and vulnerable people struggling with the cost of living will be offered grants of up to £250, Rotherham Council has said. Funding for the scheme will come from the £2.5m Household Support grant awarded to the authority by the government.

The funds will also be used to help about 15,000 local households with their council tax through a £150,000 top-up to the council tax support scheme. The council will spend £45,000 to support care leavers and £60,000 on voluntary and community groups to help vulnerable families over Christmas and New Year.

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A further £50,000 will be used to provide essential household items, such as cleaning and hygiene products, through services like food banks and social supermarkets. The council has also set aside funds to cover any variations in demand, with any unspent funds being redirected towards energy crisis support.

Rotherham Council is expected to approve the funding and ensure it is fully utilised by March 2025. The Household Support Fund has been used to allocate cash to local authorities to help shore-up those with a range of different needs.

But until now the money has been handed out only in packages lasting six-months, giving councils no certainty about the future. However, Rotherham’s ruling Cabinet was told on Monday that the new Labour Government had confirmed another year of funding, with council leader Chris Read praising the way that allowed the authority to plan ahead.

It means the council can help to support residents on a wide range of needs going into the future, he has also said this week.