The Household Support Fund has been extended for another six months, with an extra £500 million to be split between councils around the UK for the period of April to September 20241. The fund is a pot of money for local authorities to allocate to local areas of need, such as food and energy support for vulnerable households1. The previous pot was due to end on 31 March 20241.
The extension was announced in the Spring Budget on 6 March 20241. The £500 million covers April to September 2024 and is divided between councils around the UK1. The benefits hub sets out how means-tested support is administered.
"The Household Support Fund, a pot of money for local authorities to allocate to local areas of need such as food and energy support for vulnerable households, is being extended for another 6 months."
The Budget also contained other measures affecting household budgets, several of them taking effect from April 20241:
| Measure | Change | Date |
|---|---|---|
| High Income Child Benefit Charge lower threshold | Rises from £50,000 to £60,000 a year | 6 April 20241 |
| High Income Child Benefit Charge upper threshold | Rises from £60,000 to £80,000 | 6 April 20241 |
| Class 1 National Insurance (employees) | Falls from 10% to 8% | 6 April 20241 |
| Class 4 National Insurance (self-employed) | Falls from 9% to 6% | 6 April 20241 |
| Prepayment meter standing charges | Extra charges removed | 1 April 20241 |
| Budgeting Advance repayment period | Rises from 12 months to 24 months for loans taken out from December 2024 | December 20241 |
On the Child Benefit charge, 1% of the benefit will be taxed away for every extra £200 a parent earns above £60,000, instead of 1% for every extra £100 above £50,0001. From April 2026, subject to consultation, the government plans to move to a household system of administering the charge rather than an individual system, so that single earner families are not disadvantaged1.
On prepayment meters, the extra standing charges paid by prepayment meter users will be removed1. The premium had previously been absorbed by the government's Energy Price Guarantee, but that support was due to end on 1 April 20241. Ofgem announced in February that people with a prepayment meter will continue to be supported so that their standing charges are no more than Direct Debit standing charges from April 2024 onwards1.
Budgeting Advance loans are available to people who receive Universal Credit and need help to pay for emergency household costs, such as buying a new cooker, helping to get a job or to stay in work1. The repayment period for loans taken out from December 2024 onwards will increase from 12 months to 24 months1.
Tax thresholds are being frozen in 2024/251. The Budget did not include any extra cost of living payments, further changes to the Local Housing Allowance from April 2025 onwards, or a rise in the benefit cap1.
Why it matters for households
The extension means councils have funding to allocate locally for food and energy support through to September 2024, rather than the scheme ending on 31 March 20241. How the money is distributed within each area is decided by the local authority, so what is available varies by council1.
From 6 April 2024, employees pay National Insurance at 8% rather than 10%, and self-employed people pay Class 4 contributions at 6% rather than 9%1. The report notes that the effect is minimal for people with low earnings, because many do not earn enough to reach the level at which National Insurance is paid, and frozen thresholds in 2024/25 will for some low earners more than cancel out the gain from the rate reduction1.
Parents earning under £80,000 a year are affected by the Child Benefit charge changes, though the report says parents need to make sure they are claiming their entitlement to take advantage of them1.
From 1 April 2024, prepayment meter customers' standing charges are no more than Direct Debit standing charges1. For Universal Credit claimants taking out a Budgeting Advance from December 2024, repayments are spread over 24 months instead of 121.
What happens next
The extended Household Support Fund runs to September 20241. The move to a household system for administering the High Income Child Benefit Charge is planned for April 2026, subject to consultation1.
Sources1 cited
- Spring Budget update March 2024 entitledto.co.uk
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