The UK government has announced that the Household Support Fund will be extended to help struggling households deal with cost-of-living pressures over the winter. The money, which will be sent to councils, can be used to give small payments to households in need. This extension comes after backlash against the Labour government’s decision to scrap winter fuel payments for 10 million pensioners in England and Wales.
Work and Pensions Secretary, Liz Kendall, stated that the new Household Support Fund would be launched in the coming weeks, and urged pensioners and other struggling individuals to contact their local council to see what support was available. The decision to scrap some winter fuel payments is expected to reduce the number of pensioners receiving the payment from 11.4 million to 1.5 million, saving the Treasury £1.4bn this financial year. This decision only impacts England and Wales, as Scotland and Northern Ireland control their own policy on winter fuel payments.
The Household Support Fund in England will be valued at £421m and will run until the end of March 2022, after originally being due to end in September. However, the UK government is facing pressure to rethink the decision to scrap certain winter fuel payments prior to Rachel Reeves’s first budget as chancellor.
Prime Minister Keir Starmer recently warned that the budget would be “painful” and that the government would have to ask a great deal of the public. Since winning the general election in July, Sir Keir’s government has accused the Conservatives of leaving the public finances in a dire state. In response, the Conservatives have stated that Labour inherited a growing economy and claim that Sir Keir is laying the groundwork for tax increases.
The Household Support Fund was initially created in response to the Covid-19 pandemic, with an initial funding of £500m. Since its introduction, it has been extended several times, with most recent funding of £500m being provided by the previous government to extend the fund until September 2021. Councils can allocate the money to help with a variety of essential costs.
Despite opposition, the government is continuing with the decision to scale back winter fuel payments, stating that the money could be better used by focusing expenditure on households most in need of support
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