HELPING HAND
Thousands to get free cash or vouchers from £421m cost of living scheme to help with bills – how to apply
See how to get cash for energy bills and to cover your supermarket shop
THOUSANDS of households across the UK will be able to claim free cash or vouchers to help tackle the soaring cost of living this winter.
From October 1, households will be able to get fresh help from a new pot of government funding under the Household Support Scheme.
The government has released £421 million which will be distributed between councils and then dished out to vulnerable residents over the colder season.
The pot of cash will be available from October this year until March next year.
This comes as the current scheme closes today, September 30, after the latest round of £421 million was used to help struggling households across the country.
The portion of funding each council gets is based on the size of the population, catchment area, and need.
Read more from money
This time Birmingham will receive the greatest share for instance, worth £12.8million.
Receiving the second largest share will be Kent, with £11million, and Lancashire will get £9.7million.
Not every council will receive as much funding as this.
The Isle of Scilly will receive the least amount of cash, worth £11,130.
Most read in Money
The City of London will also be allocated £63,080, and Rutland £157,371.
Councils which have higher numbers of vulnerable households will get more cash based on demand.
'How can you fix it?' Keir branded DISHONEST and warned 'the country is broke' as top team grilled
Tower Hamlets, for example, is the most deprived area in London, and will get £3million.
How the cash gets distributed will be decided by each council, so what you can get will vary depending where you live.
Around £79million is estimated to be provided to the devolved governments in Scotland, Wales and Northern Ireland for them to decide how best to support their citizens.
What is the Household Support Fund?
The Household Support Fund was introduced in October 2021 by The Department for Work and Pensions (DWP) to support households most in need.
The funding is distributed between councils, and they are then responsible for dishing out the cash on an application basis.
For example, Birmingham City Council have announced they will hand out free £200 cost of living payments to help its residents cope this winter, as one of its approaches to the fresh fund.
How do I apply?
In order to be eligible for help, you usually have to be in receipt of a council tax reduction or show proof of being in financial difficulty.
Each council has a different application process - so you'll have to ask your local authority or find out via your council's website.
Not all councils have decided how they will distribute the cash yet, so you may have to wait to get all the information.
To find out how to contact your local authority, use the gov.uk authority tool checker.
In the last round of funding, some residents received their share automatically, while others had to apply.
For example, Haringey London Council is issuing automatic payments to eligible residents, as well as a support fund which can be applied to.
It is also issuing payments to schools, which means they can distribute free school vouchers.
In previous years, other authorities have offered cost of living vouchers - such as Coventry City Council.
This has included a Community Supermarket scheme, where all Coventry residents could pay £5 weekly and receive a basket of food worth up to £25.
Residents of Effingham, near Guildford, have been able to claim up to £300 free cash to help with the cost of living crisis.
Surrey council previously poured £300,000 into food banks, where photo ID and proof of address is required, but no referral needed.
While some schemes, such as the Surrey Crisis Fund, which can offer up to £100 to those immediately in need, are reserved for those who also rely on other means-tested benefits.
What else can we expect from the new government?
The Household Support Fund was introduced by the Conservative government in 2021.
This year, Secretary of State for Work and Pensions, Liz Kendall MP, said:
“We have invested an extra half a billion pounds in the Household Support Fund to give struggling families and the poorest pensioners the help they need this winter.
“As local authorities across England deliver this lifeline support to help households with the costs of feeding children and heating homes, we are continuing our work to fix the foundations of our country, grow the economy and deliver opportunities for people to get work and get on in work, so everyone feels better off.”
The Labour government is set to announce a new scheme which they have named The Child Poverty Taskforce.
The information for this will not be published until Spring 2025, however the government have promised to regularly engage with people, communities, and organisations to help shape the strategy.
Household Support Fund explained
Sun Savers Editor Lana Clements explains what you need to know about the Household Support Fund.
If you're battling to afford energy and water bills, food or other essential items and services, the Household Support Fund can act as a vital lifeline.
The financial support is a little-known way for struggling families to get extra help with the cost of living.
Every council in England has been given a share of £421million cash by the government to distribute to local low income households.
Each local authority chooses how to pass on the support. Some offer vouchers whereas others give direct cash payments.
In many instances, the value of support is worth hundreds of pounds to individual families.
Just as the support varies between councils, so does the criteria for qualifying.
Many councils offer the help to households on selected benefits or they may base help on the level of household income.
The key is to get in touch with your local authority to see exactly what support is on offer.
And don't delay, the scheme has been extended until April 2025 but your council may dish out their share of the Household Support Fund before this date.
Once the cash is gone, you may find they cannot provide any extra help so it's crucial you apply as soon as possible.
What other help can I get?
Many energy companies are offering help to those struggling to pay their bills this winter - especially pensioners, as their Winter Fuel Payments are set to be slashed.
This comes as Rachel Reeves announced a £22bn black hole in public spending, making a controversial cut to winter allowances for pensioners not receiving universal credit or any other means-tested benefit.
Follwing the announcement, Octopus Energy has introduced a new scheme, offering pensioners discretionary credit of between £50 and £200.
As well as this, Scottish Power’s Hardship Fund has handed out more than £60 million to all struggling customers.
Help is available if you receive from a long list of benefit schemes, including Income Related Employment and Support Allowance or Income Based Jobseeker's allowance.
You may also be eligible if you are facing circumstances impacting your earnings, such as illness.
Another company offering help is Utilita - which offers grants to customers to help clear or minimise energy debt.
The scheme operates through Utilita Giving, which is the company's charity partner.
Utilita Giving also partners with other charities such as IncomeMax, which helps customers make sure they are claiming what they are entitled to, and Let’s Talk, which provides replacement white goods.
Meanwhile, Utility warehouse offers payments of up to £140 to customers about to go in debt, or are currently indebted.
The team has helped 6,000 customers increase their combined disposable income in the last year by £9 million.
READ MORE SUN STORIES
To find out if you are eligible for any of these schemes, visit their websites and review the conditions of applying.
Via the website you will find information on how to apply - saving you huge amounts of cash this winter in just a few steps.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Facebook group to share your tips and stories
Topics