No update on future of household support fund until autumn budget, DWP minister says

It is unlikely there will be an announcement on the household support fund from the Labour government until the autumn budget, a minister for the Department for Work and Pensions (DWP) has said.

Distributed by local authorities to the country’s most vulnerable households, the hardship fund is intended to meet daily needs at times of crisis. It could be in the form of vouchers to cover the costs of food and utilities, free school meals over the holidays, or employment and financial advice.

The fund is currently set to expire on 30 September and the uncertainty of its future will come as a blow to millions of Brits struggling to make ends meet. It means local welfare assistance could disappear altogether for many parts of the country. Charities have told Big Issue the gap in funding is a “grave concern”.

Stephen Timms, minister for social security in the DWP, explained to the Big Issue: “I expect an announcement on the future of the household support find in Rachel Reeves’ budget statement on 30 October. I would be surprised if there was anything official before then.”

• Nearly 18 million people will be left without crisis support if DWP fund ends
• Majority of councils unable to help those in crisis after DWP’s support fund ends next month

Recent research from the End Furniture Poverty charity has found that a total of 17.8 million people will be cut off from crisis support if the household support fund ends next month.

The update from Timms comes amid reports from the Financial Times that the household support fund is set to be extended – but in the aftermath of prime minister Keir Starmer admitting that the autumn budget due to be delivered by Rachel Reeves in October will be “painful”.

A spokesperson for the DWP said it could not comment on speculation about future policy decisions, but 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.”

The household support fund was extended by Jeremy Hunt in the Conservative government’s spring budget for six months.

Councils say it plays an essential role in tackling disadvantage and and supporting communities as people continue to struggle with the impact of the cost of living crisis.

Before he became minister, Timms told the Big Issue that “crisis support will disappear altogether in many areas” if the household support fund comes to an end.

Claire Donovan, head of policy, research and campaigns at End Furniture Poverty, said: “One of the key issues with the household support fund has been the last-minute announcement of the funding so local authorities were unable to put proper plans in place to deliver vital support to families in need.

“We appreciate the significant challenges that the new government is facing, however families are also struggling to afford food, cover rising energy bills and to acquire expensive items like furniture and appliances.

“This gap in funding is a grave concern and will mean cash-strapped authorities will wind down existing schemes so we urgently ask the government to reconsider their decision to wait until the autumn budget to announce their plans for future crisis support funding.”

Sabine Goodwin, director of the Independent Food Aid Network (IFAN), said: “People struggling to afford food, food banks, and local authorities across England are desperate for news about the future of the household support fund. Any announcement of a decision to extend this vital source of support cannot wait until the autumn budget. The cliff edge will be reached in a matter of weeks.”

Goodwin called on the government to provide certainty so that local authorities can local authorities can “plan the level of support they can provide through what’s predicted to be an extremely challenging winter ahead”.

She added: “In the long term, our social security system needs to be fit for purpose distributing payments which match the cost of living. Meanwhile, local authorities’ crisis support schemes in England need long-term investment to bring them in line with provision in Scotland, Wales, and Northern Ireland.”

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