MILLIONS of households are set to benefit from extra cash to cover the cost of living after the Government extended a crucial fund.
The Department for Work and Pensions (DWP) has announced the Household Support Fund (HSF) will be extended into next year.
The scheme works by giving councils across England a slice of funding to distribute to hard-up households.
The fund was supposed to end on September 30, but it has now been extended until next spring.
A further £421million will be distributed to councils to give to residents in need between October and April next year, the DWP said.
A further £79million will be offered to councils across Scotland, Wales and Northern Ireland.
The latest announcement means millions of households will get help with the cost of living over the winter months and into the spring.
Councils get to decide how they distribute their share of the fund, but in most cases offer hard-up households cash grants or vouchers.
Rachel Reeves, Chancellor of the Exchequer, said: “The £22billion black hole inherited from the previous governments means we have to take tough decisions to fix the foundations of our economy.
“But extending the Household Support Fund is the right thing to do – providing targeted support for those who need it most as we head into the winter months.”
The DWP is urging pensioner households in particular to contact their local councils from October to see what help might be available to them via the HSF after Winter Fuel Payments were scrapped for millions.
The up to £300 payment used to be available to anyone above state pension age, but will be means-tested from this winter.
That means only those on certain benefits including pension credit will qualify.
Liz Kendall, Secretary of State for Work and Pensions, said: “We are extending the Household Support Fund for the next six months because it is a lifeline for people who are struggling with the cost of living.
“The dire inheritance we face means more people are living in poverty now than 14 years ago – and this Government is taking immediate action to prevent a cliff edge of support for the most vulnerable in our society.”
It’s worth noting, the current round of the HSF is still open and councils have until September 30 to distribute their share.
That means you might be eligible for help now, but should apply as soon as possible.
Some councils have already handed out their share of the fund for the latest round which means you might already be too late.
Councils across England will decide who to distribute their share of the HSF to which means whether you will qualify depends on where you live.
However, in most cases you will be eligible if you are on benefits, classed as vulnerable or have limited savings.
You may not be able to get help for the new round if you have previously received support from the HSF.
If you are eligible, you may be contacted by your local council telling you what the next steps are to receiving any help.
You may also have to actively apply via your local authority’s website.
Most councils probably won’t have decided their eligibility criteria yet as the Government has only just announced the HSF extension.
Councils also get to decide how much they offer to each household and when to open their share of the fund.
However, you can contact your local authority to find out when the fund will open and whether you qualify.
You can find your local council by using the Government’s “Find your local council” tool on its website.
If you’re not eligible for the Household Support Fund in your local area, it’s worth checking if you qualify for benefits.
Figures from Policy in Practice earlier this year revealed millions of people aren’t claiming the extra help when they could be.
In total, £23billion went unclaimed in the 2023/24 financial year, with £8.3billion worth of Universal Credit not claimed for.
You can apply for benefits on the Government’s website.
It’s not just extra money you get from benefits either, with a number opening up additional perks.
Those on Universal Credit can get help covering the cost of childcare, for example, while those on Pension Credit can get a free TV licence.
Those on the Guarantee Credit element of Pension Credit also qualify for the Warm Home Discount – a £150 discount off energy bills once a year.
You may also be able to get grants to cover your energy bills if you’ve fallen into arrears.
A number of energy firms offer grants to struggling customers, including Scottish Power, Octopus Energy and British Gas.
If you’re struggling to pay your bills, speak to your supplier to see if they can give you any help.
You might also be able to get help via the Energy Company Obligation (ECO).
Under the scheme, suppliers have a legal obligation to implement energy-saving measures in your home.
Help is offered on a case-by-case basis, but it can mean having a new boiler fitted, or loft or cavity wall insulation put in, often for free.
You also have to be claiming certain benefits to qualify for the scheme.
THERE'S a number of different ways to get help paying your energy bills if you're struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have grant schemes available to customers struggling to cover their bills.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
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