Source · Select Committees · Work and Pensions Committee
Recommendation 16
16
Rejected
Paragraph: 134
Make the Household Support Fund a permanent feature of the social security system.
Conclusion
It is welcome that the Government is extending the Household Support Fund (HSF) for a further six months until September 2024. Alongside other benefits, the HSF has provided a vital layer of additional support to households during the cost of living crisis. The Household Support Fund should be made a permanent feature of the social security system. This would enable local authorities to plan their provision of discretionary support to households better.
Government Response Summary
The government rejected making the Household Support Fund permanent, stating it was introduced for high inflation, which is now falling, and confirmed a six-month extension until September 2024 as targeted temporary support.
Paragraph Reference:
134
Government Response
Rejected
HM Government
Rejected
The Household Support Fund was introduced as part of the government’s commitment to supporting the most vulnerable during a year when war in Ukraine and global supply chain pressures led to high inflation. Since October 2022, the annual increase in CPI has already more than halved from 11.1% to 3.2%. This is stabilising the financial situation for many families, and the OBR expects that by Quarter 4 2024 (October-December) the increase in CPI will have fallen to 1.4%. In the meantime, some people will need further, targeted help to get back to a stable financial position. That is why the Government is providing an additional £500m to enable a 6-month extension of the Household Support Fund. This includes funding for the Devolved Administrations through the Barnett formula, to be spent at their discretion. This means that local authorities in England will receive an additional £421m to support those in need locally from 1 April 2024 to 30 September 2024 through the scheme. This brings the total amount of funding announced for this type of support since October 2021 to £3bn, including Barnett impact. This includes over £2.5bn allocated to local authorities in England. The Government has also delivered a balanced package of funding through the Local Government Finance Settlement for 2024–25. The 2024–25 Settlement makes available up to £64.7 billion for local authorities in England and includes a package of additional measures worth £600 million, of which £500 million is new grant funding for social care authorities. The most relatively deprived areas of England (the upper decile of the Index of Multiple Deprivation) will receive 18% more per dwelling in available resource through the 2024– 25 Settlement than the least deprived areas. Local authorities can continue to provide local welfare support to their residents using their existing powers. Indeed, many local authorities already operate local welfare schemes that, subject to local eligibility criteria, include help for vulnerable households with essential costs. Department for Levelling Up Housing and Communities (DLUHC) works closely with the local government sector and other government departments to understand the specific demand and cost pressures facing councils. Benefit levels in the UK overnment’s response to the Committee’s Second eport 13