Household Support Fund should primarily be used for essential costs but may be used for housing costs in ‘exceptional cases of genuine emergency’, says DWP

Draft guidance issued to local authorities also clarifies that eligibility is not restricted to households on benefits and can include those with no recourse to public funds

The government has told local authorities that the Household Support Fund should primarily be used for essential costs, but may be used for housing costs in 'exceptional cases of genuine emergency'.

The £500 million Fund - which was announced on 30 September 2021 to coincide with the ending of Covid-related economic support including the furlough scheme and the £20 universal credit 'uplift' - was set up to 'provide a lifeline for those at risk of struggling to keep up with their bills over the winter'. 

NB - while £421 million of the total funding is going to English local authorities, the remainder is being distributed to the devolved administrations - £41 million for the Scottish Government, £25 million for the Welsh Government and £14 million for the Northern Ireland Executive - who will make their own decisions with respect to their allocation.

To provide further clarity in respect of eligibility for, and administration of, the Fund in England, the DWP has written to the heads of local authorities issuing draft guidance that advises that -

• the funds must be spent or committed before 31 March 2022 and cannot be held over for future use;
• it should be used to meet immediate needs and help those who are struggling to afford food, energy and water bills, and other related and wider essentials;
• in exceptional cases of genuine emergency, it can be used to support housing costs where existing housing support schemes do not meet this exceptional need;
• at least 50 per cent of the funding is ring-fenced for vulnerable households with children, with the remaining funding available to households without children and individuals;
• it is not restricted to households in receipt of benefits;
• it can be used for individuals with no recourse to public funds if there is 'a genuine care need that does not arise solely from destitution'; and 
• it cannot be used to provide advice services.

NB - Annex A to the guidance sets out further Questions and Answers relating to administration of the Fund.

For more information and details of the funding issued to each local authority, see the letter from DWP to heads of local authorities (6 October 2021).

Update (18 October 2021) - Work and Pensions Secretary Thérèse Coffey has confirmed details of the new funding in a written statement to the House of Commons.