As part of the Household Support Fund programme, thousands of low-income households will get a £200 cost of living payment. The Department for Work and Pensions (DWP) has contributed an extra £421 million to the fund, which aims to give low-income people who are struggling financially instant support.
Councils like Dudley have set aside a portion of their funds for these one-time payments, providing eligible citizens with focused assistance. This program highlights the urgent need for financial assistance in the current economic context, as applications are only accessible for a short time before shutting owing to strong demand.
How the Household Support Fund is Helping Struggling Families
The original purpose of the Household Support Fund was to provide assistance to low-income families, seniors, unpaid carers, and people with disabilities. The government extended the fund for an additional six months, to the end of March 2024, in response to the ongoing increases in the cost of necessities including food, energy, and housing.
Depending on the unique needs of their communities, local authorities are in charge of allocating the funding. For example, Dudley Council spent 15% of its £2.6 million budget on the £200 payments, with the other funds going to voluntary sector organisations and frontline services. The money is meant to help with transportation, food, clothing, utility bills, and other necessities.
To qualify for the £200 payment, applicants had to:
- Reside in Dudley borough
- Have household savings below £2,000
- Have a household income below £40,000 per year (or £30,000 for single occupancy households)
- Not have received a previous Household Support Fund payment between 1 April 2024 and 21 January 2024
The payments were approved on a first-come, first-served basis, with 1,968 successful applications. While the majority of applications were processed online, a small number were handled over the phone for those who experienced technical difficulties.
When to Expect the Payments and Warnings Over Scams
The £200 payments are expected to be transferred into recipients’ bank accounts within two to four weeks of application approval. Due to high demand, Dudley Council reopened applications on 22 January but closed them the same day after reaching capacity.
Council officials have also issued fraud warnings after reports of scam calls from fraudsters pretending to offer cost of living payments. These scams often involve attempts to obtain personal and financial details from unsuspecting residents. Authorities have reiterated that they will not contact individuals to invite them to apply for the Household Support Fund and have urged residents to be cautious.
Meanwhile, in Birmingham, the Household Support Fund has been temporarily paused until March to allow officials to process the large number of existing claims. This surge in applications highlights the continued financial struggles many UK households face amid the rising cost of living.
Im disabled and live in cornwall and every time i phone the councel i get told its all gone and if i go on the web site i get a robot and cant get a propper reply.