Six in 10 local councils will not be able to provide extra welfare support when funding ends next month, councils have warned.
More than four out of five councils in England expect more demand for welfare support over the winter, research from the Local Government Association (LGA), which represents all local councils, suggests.
The Household Support Fund (HSF), introduced by the previous government in 2021, helps people struggling to pay bills, buy food and cover other essentials but is expected to finish at the end of September, the LGA said.
Chancellor Rachel Reeves also announced last month the winter fuel allowance for pensions would be means-tested as she tries to fill a £22 billion black hole in public finances.
The LGA is calling for the HSF to be extended for at least six months to avoid a “cliff-edge” drop in support.
A total of 94% of councils who responded to an LGA survey said the funds should continue.
Nearly 60% said they would not be able to provide any additional funding for local welfare assistance if it ends in September.
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Just 1% said they would be able to match the lost funding.
More than four-fifths of respondents (84%) expect demand for welfare assistance to increase over the winter months.
Just over two-thirds (67%) of councils who responded reported local welfare funding would have to be decreased if HSF was withdrawn to help those in need of it.
More than three-quarters of councils said a scheme to replace HSF should be in place from March 2025.
Councils said the fund ending as winter approaches is most concerning as that is when many residents are most at risk of falling through the gaps into hardship, and there is increased pressure on public services, such as health.
The LGA said an extension would provide certainty and security for those struggling to buy food, pay bills and cover other essentials, and to allow councils to plan ahead and retain staff.
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Councillor Pete Marland, chair of the LGA’s economy and resources board, said: “The Household Support Fund is a vital safety net for vulnerable residents struggling with the cost of living, which councils are using to target help to those most in need, but is currently due to run out in a matter of weeks.
“We are approaching another cliff edge before the current fund runs out and we urge the Government to urgently extend this for at least another six months, to help support those most affected through the winter when energy bills in particular are expected to be higher.
“Ultimately, councils want to see a shift away from short-term, crisis support so they can instead invest in preventative services which improve people’s financial resilience and life chances. Crucially this must be underpinned by a sufficiently-resourced national welfare system.”
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A government spokesman said: “This government will tackle the scar of poverty by making sure work pays and improving support to help people into good work.
“More details on the Household Support Fund will be set out in due course.”
