Household Support Fund extended until September 2024 with extra £500 million

The Household Support Fund received an extra £500 million so it could be extended until September 2024, according to the House of Commons Library¹. The fund allows local authorities in England to make discretionary payments to people most in need to help with the rising cost of food, energy and water bills¹. The government announced in September 2024 that the fund is extending for another six months².

The extension sits within a wider period of high inflation. The annual rate of inflation peaked at 11.1% in October 2022, a 41-year high, before easing over the subsequent 18 months¹. In May 2024, inflation fell to 2.0%, the Bank of England's target, for the first time since July 2021¹. Over the three years between May 2021 and May 2024, UK consumer prices increased by 20.8% in total¹.

The Joseph Rowntree Foundation, in a briefing published on 11 September 2024, said the previous government's Household Support Fund was due to end in September 2024, describing it as "always too short-term and too small-scale to tackle poverty effectively"³. The foundation said the scheme should be extended by up to a year while a new approach to hardship payments is developed³.

Other support measures have changed. In April 2024, Department for Work and Pensions benefits linked to inflation were uprated by 6.7%, in line with the annual CPI inflation rate in September 2023, as were inflation-linked tax credits elements and benefits administered by HM Revenue and Customs¹. For 2024/25 the basic State Pension and new State Pension was increased by 8.5% in line with average earnings growth¹. A temporary 5p cut to fuel duties was extended into 2024/25 and the planned increase of fuel duties in line with inflation was cancelled; as of July 2024, fuel duties remained at the level they were reduced to in March 2022¹.

On energy, the Energy Price Guarantee was introduced on 1 October 2022 to cap typical consumption at £2,500 a year, limiting increases in typical bills to 27% in October 2022¹. It became less generous in July 2023, increasing to £3,000 a year, but a fall in the price cap in July 2023 meant the EPG no longer set maximum prices and consumer bills fell¹. The price cap fell again in October 2023, April 2024 and July 2024; the July to September 2024 price cap will still be almost 30% higher than the winter 2021/22 cap¹.

The Warm Home Discount Scheme reopens in October 2024, offering £150 off electricity bills for eligible households². Cold Weather Payments of £25 are made for each seven-day period of very cold weather between 1 November and 31 March when local temperatures are zero degrees Celsius or below over seven consecutive days². In Scotland, the Winter Heating Payment has replaced the Cold Weather Payment and is an annual payment not based on temperature levels².

Winter Fuel Payment rules have changed. In 2024/25, people can get the payment if they were born before 23 September 1958 and live in England and Wales, and must be receiving one of a list of benefits including Pension Credit, Universal Credit, Income-related Employment and Support Allowance, Income-based Jobseeker's Allowance or Income Support². People aged 66 to 79 will get £200 per household, rising to £300 for people aged 80 or over². For winter 2024/25, the Department for Work and Pensions has committed to make payments to eligible pensioners in Scotland on terms equivalent to Winter Fuel Payments in England and Wales². From winter 2025/26, Scotland will introduce the Pension Age Winter Heating Payment².

The following government help schemes are confirmed to be no longer available in winter 2024: the Energy Price Guarantee, the £900 one-off Cost of Living Payment for those on means-tested benefits, the Pensioner Cost of Living Payment and the £150 Disability Cost of Living Payment².

Why it matters for households

The Household Support Fund extension means local authorities in England can continue making discretionary payments to people most in need to help with food, energy and water bills¹. The fund operates in England, Wales and Scotland, and households apply through their local council². The extra £500 million covered the extension until September 2024¹, and a further six-month extension was announced in September 2024².

The changes to Winter Fuel Payment mean the payment is no longer available to everyone of pension age. From 2024/25, eligibility in England and Wales depends on being born before 23 September 1958 and receiving one of a list of means-tested benefits². Payments are £200 per household for those aged 66 to 79 and £300 for those aged 80 or over².

For households on benefits, the April 2024 uprating of 6.7% applied to inflation-linked DWP benefits, tax credits elements and HMRC-administered benefits, while the basic and new State Pension rose by 8.5% for 2024/25¹. Income tax thresholds have been frozen at their April 2021 levels as of July 2024, meaning taxpayers pay more income tax on their income compared with a situation in which thresholds rose in line with inflation¹.

Energy bills remain a pressure point. The July to September 2024 price cap will still be almost 30% higher than the winter 2021/22 cap¹. The Warm Home Discount Scheme reopens in October 2024, offering £150 off electricity bills for eligible households in England, Wales and Scotland². Cold Weather Payments of £25 per seven-day period of very cold weather run between 1 November and 31 March².

What happens next

The Household Support Fund has been extended for another six months from September 2024². The Warm Home Discount Scheme reopens in October 2024². From winter 2025/26, Scotland will introduce the Pension Age Winter Heating Payment². The Joseph Rowntree Foundation said the scheme should be extended by up to a year while a new approach to hardship payments and support is developed³.