The UK government has confirmed the extension of the Household Support Fund (HSF) for another year, providing £742 million to assist struggling households with essential costs such as food and energy.
The funding will be distributed to local councils across England, with additional allocations for Scotland, Wales, and Northern Ireland under their own schemes.
The announcement comes as the current round of funding is set to expire on March 31, 2025. The decision follows growing calls for a long-term approach to financial support, with some campaigners advocating for the fund to become a permanent fixture.
However, no commitments have been made beyond March 2026, according to government officials.
Continued Financial Relief for Vulnerable Households
The Household Support Fund, first introduced in 2021, was designed to provide financial aid to those facing hardship due to the rising cost of living. According to Baroness Sherlock, Parliamentary Under-Secretary of State for Work and Pensions, the extension of the fund ensures that local councils can continue offering discretionary support for those in need.
Speaking at a House of Lords committee meeting, Baroness Sherlock explained that securing funding for the scheme was a priority for the Department for Work and Pensions (DWP) following the general election.
“The government have now found the money to extend the fund by a further year from April 1, 2025, until March 31, 2026,” she said. The allocation will include Barnett consequentials, meaning devolved governments in Scotland, Wales, and Northern Ireland will receive proportional funding to implement their own support measures.
Local authorities, which are responsible for distributing the fund, will now have greater certainty in planning assistance programmes. This contrasts with previous years, where last-minute decisions on funding made it difficult to develop long-term support strategies.
Uncertainty Over Future Financial Support
Despite the extension, there is no guarantee that the Household Support Fund will continue beyond March 2026. According to Baroness Sherlock, discussions on long-term funding will be reviewed at a later stage. This uncertainty has led to calls for a more stable, structured approach to local welfare assistance.
Baroness Lister of Burtersett, a longstanding advocate for financial aid schemes, highlighted that the Work and Pensions Committee had recommended making the Household Support Fund permanent.
She referenced proposals from the Trussell Trust, a food bank charity, which suggested integrating the fund into a broader system of “cash-first” crisis support. This, she argued, could help reduce reliance on emergency food parcels, which the Labour Party has previously described as a “moral scar on society.”
