Councils Face 'Cliff-Edge' as Household Support Fund Nears Expiration

As the end of September approaches, rural communities across the UK are bracing for the potential fallout from the expiration of the Household Support Fund (HSF). The Local Government Association (LGA) has raised significant concerns about the impact on vulnerable households if this crucial lifeline is not extended.

The HSF has been instrumental in helping individuals and families in rural areas meet basic needs such as food, energy bills, and other essential costs. However, with the fund set to expire at the end of September, there is growing anxiety among rural councils about their ability to continue providing this critical support.

In an exclusive survey conducted by the LGA, an overwhelming 94% of councils emphasised the need for the fund to continue, highlighting that without an extension, nearly 60% of them would be unable to provide additional local welfare assistance. The survey also revealed that over four-fifths (84%) of councils anticipate an increase in demand for welfare assistance as winter approaches, just when the HSF is stated to end.

The LGA has made it clear that the cessation of the HSF could lead to a significant "cliff-edge" in support, leaving many rural residents at risk of falling into deeper hardship. This risk is particularly acute as energy bills are expected to rise during the winter months, placing additional strain on those already struggling with the cost of living.

Councillor Pete Marland, Chair of the LGA’s Economy and Resources Board, underscored the importance of the HSF, describing it as a "vital safety net" that many rural councils rely on to provide targeted help to those most in need. The potential loss of services, including grants for energy and food, support for food banks, and financial advice, is a pressing concern for councils trying to manage already stretched budgets.

The LGA is advocating for an immediate six-month extension of the HSF to provide much-needed certainty and security for rural communities during the challenging winter period. However, the LGA also emphasises the need for a longer-term, sustainable approach to welfare support. Moving forward, councils are calling for a transition away from short-term crisis interventions towards preventive services that enhance financial resilience and reduce dependency on emergency assistance.

As rural councils continue to navigate the ongoing cost-of-living crisis, the potential expiration of the HSF poses a significant threat to the well-being of vulnerable residents. The Rural Services Network encourages all stakeholders to support the LGA's call for an extension and to consider the long-term needs of rural communities as we work towards building a more resilient and equitable welfare system.

For more detailed information on the LGA's findings and recommendations, please refer to their website HERE.

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