Household Support Fund 2024: what is the cost of living payment - was an extension announced in Autumn Budget?

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Big news for struggling families 📢
  • Rachel Reeves announced an extension of the Household Support Fund in her first Autumn Budget as Chancellor
  • The Fund will now run until March 2026, providing financial relief for millions of low-income UK households
  • Local councils will distribute £1 billion to help vulnerable families cover essential costs like food, energy and water
  • The extension includes additional funding for Scotland, Wales and Northern Ireland
  • Discretionary Housing Payments will also continue, assisting low-income households with rent and other housing costs

In her first Autumn Budget as Chancellor, Rachel Reeves announced significant measures to support struggling families.

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But what of the Household Support Fund (HSF), the initiative aimed at offering financial relief to millions of low-income households, which promises direct cash assistance to ease the burden of rising living costs?

Ahead of the Budget, the fund was expected to run until at least the end of March 2025, having already been extended by Labour a few weeks ago.

But with inflation and energy prices continuing to squeeze household budgets, did Reeves' offer any indication of a further extension?

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Here is everything Reeves said on the HSF, including whether the support will be extended further in the future, and how the proposed changes will address the needs of those most affected by ongoing economic challenges.

Rachel Reeves poses with the red Budget Box as she leaves 11 Downing Street to present the government's annual Autumn budget to Parliament (Photo: JUSTIN TALLIS/AFP via Getty Images)Rachel Reeves poses with the red Budget Box as she leaves 11 Downing Street to present the government's annual Autumn budget to Parliament (Photo: JUSTIN TALLIS/AFP via Getty Images)
Rachel Reeves poses with the red Budget Box as she leaves 11 Downing Street to present the government's annual Autumn budget to Parliament (Photo: JUSTIN TALLIS/AFP via Getty Images) | AFP via Getty Images

Has the Household Support Fund been extended?

In her budget, Reeves said that, to “protect vulnerable people”, the government will “provide £1 billion... to extend the Household Support Fund and Discretionary Housing Payments in 2025-26, which will be used by local authorities to address immediate hardship and crisis.”

That means the Household Support Fund is now expected to run until March 2026, and the funding, which includes additional money for Scotland, Wales and Northern Ireland, will go to local councils to support low-income households in crisis.

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It will help those most in need with essential costs like food, energy and water, and builds on an earlier £500 million extension to the Household Support Fund.

Local councils distribute the Household Support Fund by identifying households that are most in need within their communities.

Each council has the flexibility to determine the exact criteria and application process based on local needs, meaning that distribution methods and eligibility requirements can vary by area.

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Some councils provide direct cash payments, while others may offer vouchers, food parcels or bill payments.

What else was announced?

Discretionary Housing Payments (DHPs), again managed by local councils, will also continue to assist people with rent and housing costs.

DHPs are typically available to people who already receive some form of housing assistance, like Housing Benefit or the housing element of Universal Credit, but still struggle to cover their rent or other housing-related expenses.

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Additionally, for those on Universal Credit, the government is introducing a Fair Repayment Rate, capping repayments at 15% of the standard allowance, which will help around 1.2 million households keep more of their monthly benefit.

More funding is also being allocated to increase Pension Credit access and improve its administration alongside Housing Benefit by 2026.

We’d love to hear your thoughts on the latest extension of the Household Support Fund and how these changes could impact you or your community. Share your perspectives, stories and any questions in the comments section.

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