As furlough scheme and £20 ‘uplift’ come to an end, government launches £500 million support fund to ‘help vulnerable households with essentials over winter’

However, Joseph Rowntree Foundation says new Household Support Fund 'does not come close' to scale of challenge facing struggling families

As the furlough scheme and £20 'uplift' to universal credit and working tax credit come to an end, the government has launched a £500 million support fund to 'help vulnerable households with essentials over winter'.

Announcing the end of the furlough scheme today, Chancellor Rishi Sunak said - 

'I am immensely proud of the scheme, and even more proud of UK workers and businesses whose resolve has seen us through an immensely difficult time. With the recovery well underway, and more than 1 million job vacancies, now is the right time for the scheme to draw to a close.

But that in no way means the end of our support. Our Plan for Jobs is helping people into work and making sure they have the skills needed for the jobs of the future.

However, with other Covid-related economic support - including the Self-employment Income Support Scheme and the £20 'uplift' - also coming to an end, the DWP has today announced a new £500 million Household Support Fund which will - 

'... support millions of households in England and will be distributed by councils in England, who know their local areas best and can directly help those who need it most, including for example, through small grants to meet daily needs such as food, clothing, and utilities. Cash will be made available to local authorities in October 2021.'

Welcoming the launch of the new Fund, Mr Sunak said - 

'Everyone should be able to afford the essentials, and we are committed to ensuring that is the case.

Our new Household Support Fund will provide a lifeline for those at risk of struggling to keep up with their bills over the winter, adding to the support the government is already providing to help people with the cost of living.'

However, Deputy Director at the Joseph Rowntree Fund Helen Barnard commented - 

'The Household Support Fund is an eleventh hour attempt to save face as the government presses ahead with an unprecedented overnight cut to universal credit next week.

The support available through this fund is provided on a discretionary basis to families facing emergency situations. It does not come close to meeting the scale of the challenge facing millions families on low incomes as a cost-of-living crisis looms and our social security system is cut down to inadequate levels. By admitting today that families will need to apply for emergency grants to meet the cost of basics like food and heating through winter, it’s clear the Chancellor knows the damage the cut to universal credit will cause.

The temporary measure announced today will not fix the fundamental inadequacy of our social security system, but it does show the government is capable of changing course. The Prime Minister and Chancellor cannot ignore the widespread concern about the cut, and must reverse it before it’s too late.'

For more information, see Government launches £500m support for vulnerable households over winter from gov.uk