As the Government’s Household Support Fund Scheme approaches its end, households across the UK face the risk of missing out on cost-of-living support totalling £85 million. The Household Support Fund, designed to aid struggling households, grants local councils a financial allocation to address the needs of their communities. However, with the impending deadline, concerns arise as independent research reveals that a substantial portion of the allocated £842 million for April 2023 to March 2024 remains unspent.
Initiated in October 2021, the Household Support Fund Scheme has been a vital resource for local councils in providing assistance to households facing financial challenges. The scheme’s structure empowers each local authority to decide how to allocate the funds based on the unique needs of their community.
Last year, the Government injected an additional £842 million into the scheme to cover the period from April 2023 to March 2024. According to recent independent research, approximately £85 million of this fund is still unutilized. The scheme mandates that local councils spend their allocated funds entirely by the March 31 deadline, or any remaining amount must be returned to the Government.
A comprehensive analysis of responses from 100 councils across England, obtained through Freedom of Information requests, underscores the urgency of the situation. Derbyshire City Council and Leeds City Council emerged as having the largest unallocated amounts, with £6,519,408 and £5,624,353, respectively, still left in their coffers as of January 5. These figures stand in stark contrast to their original allocations of £10.8 million and £14 million.
Other local authorities featured in the top 10 with significant unspent funds include Leicester City Council, Surrey County Council, and Tower Hamlets Council. Among the surveyed councils, 82 still had funds remaining as of January 5, and over a dozen councils had reserves exceeding £1 million.
However, it’s worth noting that some councils have successfully deployed their allocated funds. Trafford Council, Ribble Valley Borough Council, and Halifax Council stand out as examples where prudent allocation has occurred.
With the deadline for the Household Support Fund Scheme fast approaching, the spotlight is on local councils to ensure the timely and effective utilization of the allocated funds. As households grapple with the challenges posed by rising living costs, the potential loss of £85 million in unspent support adds urgency to the need for proactive and strategic fund allocation. The outcome of this situation will undoubtedly impact the lives of many, emphasizing the importance of efficient fund distribution to address the pressing financial concerns of households across the country.