£500m support for vulnerable households

The government has launched a new £500 million package of support for vulnerable households. The new Household Support Fund will be used to help those most in need with essentials over the coming months as the country continues its recovery from the pandemic.

The fund will be used to help support millions of households in England and monies will be distributed by councils. This means that local councils will also be able to use the funding to provide discretionary support to vulnerable households. This could include using small grants to meet daily needs such as food, clothing, and utilities. Cash will be made available to Local Authorities in October 2021.

The Barnett formula will apply in the usual way to additional funding in England. The devolved administrations will therefore receive up to £79m of the £500m. This will be allocated as follows: £41m for the Scottish Government, £25m for the Welsh Government and £14m for the Northern Ireland Executive.

This fund is in addition to other previously announced measures including the Warm Home Discount which provides a £140 rebate on energy bills each winter to over 2.2 million low-income households and the Cold Weather Payment which provides £25 extra a week for poorer households when the temperature is consistently below zero.