New payments for cost of living will go to UK households from £421m DWP fund

Shoppers in Cardiff city centre
-Credit: (Image: WalesOnline/Rob Browne)


New payments for the cost of living will go to households from October onwards as a £421 million nationwide cash pot was made available. The Department for Work and Pensions has shared the cash among local authorities in England for them to spend on direct payments and other support for those on low incomes.

The Household Support Fund, which was due to expire at the end of September, will run for another six months in what the Government described as a multimillion-pound boost for local authorities. The DWP announced the extension of the fund from October through to the end of next March.

Additional funding is being sent to devolved administrations in Wales, Scotland and Northern Ireland which have their own schemes. The DWP said pensioners and others struggling to heat their homes or afford other essential items should check their local council's website to see what support may be available to them.

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In the most recent round of the Household Support Fund, some councils gave out payments of up to £550. In Birmingham, the scheme was handled by the Birmingham Voluntary Service Council which has paid £200 hardship grants to thousands of low-income households on means-tested benefits.

The Local Government Association (LGA) said an overwhelming majority of councils (94 per cent) had wanted the Household Support Fund to continue, while nearly 60 per cent confirmed they would not be able to provide additional funding for welfare assistance if it came to an end.

Pete Marland, chairman of the LGA's economy and resources board had described the fund as a "vital safety net for vulnerable residents struggling with the cost of living."

He welcomed news of the fund being extended, saying it was "very positive the Government has acted in response to our campaign to extend this vital fund, which will help millions of vulnerable households at a time when demand for support is expected to increase over winter."

The Government said the fund can be used by councils to go beyond emergency support, including working with local charities and community groups to provide residents with key appliances, school uniforms, cookery classes, and items to improve energy efficiency in the home.

The announcement of the Household Support Fund's extension came after the condemnation of the Labour Government for axing Winter Fuel Payments for millions of pensioners. The allowance is now going only to older people who receive Pension Credit and some other means-tested benefits.

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