To ask His Majesty's Government, further to the announcement by the Chancellor of the Exchequer in the Budget Statement on 6 March that the Household Support Fund has been extended until September, what support they will provide to local authorities when the fund ends.
Answered on
8 April 2024
As announced by the Chancellor in the Spring Budget on 6 March, the government is providing an additional £500m to enable the extension of the Household Support Fund, including funding for the Devolved Administrations through the Barnett formula to be spent at their discretion. This means that Local Authorities in England will receive an additional £421m to support those in need locally through the Household Support Fund.
The funding will be available to Local Authorities in England from 1 April 2024 and will run until 30 September 2024.
The Household Support Fund is not the only way we are supporting people on lower incomes. April’s benefit uprating of 6.7% will see an average increase in Universal Credit of £470, raising the National Living Wage will deliver an increase of over £1800 to the gross annual earnings of someone working full-time on that wage, and uplifting Local Housing Allowance to the 30th percentile of local rents will benefit 1.6 million private renters by, on average, £800 a year.
The Government has also delivered a balanced package of funding through the Local Government Finance Settlement for 2024-25 which makes available up to £64.7 billion. The most relatively deprived areas of England will receive 18% more per dwelling in available resource through the 2024-25 Settlement than the least deprived areas.
As announced by the Chancellor in this year’s Spring Budget, we are also doubling the repayment period for new Universal Credit Budgeting Advances.