The chancellor has announced £1 billion for the Household Support Fund to help low-income families struggling with the cost of living
In the Autumn Budget today, Chancellor Rachel Reeves confirmed help for low-income households via the Household Support Fund. In her speech in the House of Commons, she said that the ‘cost of living crisis stretched household finances to their limit’. And that she would be ‘taking steps to support people with the cost of living’.
Alongside raising the national minimum wage by 6.7% and uprating working age benefits, such as Universal Credit, by 1.7%, she said the government would be allocating £1 billion to extend the Household Support Fund into next year. The HSF is a pot of government money given to local councils. Councils use the money to support families most in need in their area. How the money is distributed and who is eligible varies depending on the council. But many local authorities have used it to provide cash grants to low-income households, help with household bills and give food vouchers to families who receive free school meals during the holidays.
The HSF was introduced in 2021 to help families struggling during the cost of living crisis. It has already been extended a number of times and was due to come to an end in September this year. While the chancellor didn’t state when the fund would eventually come to an end, the Labour government previously announced it would be extended until 31 March 2025.
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