Britons urged to claim 'huge sums' in cost of living support as £300 grant up for grabs
Cost of living assistance is available via the Household Support Fund
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Thousands of UK households are missing out on crucial financial support from their local councils, including a £300 grant.
A Freedom of Information request by loan provider Creditspring has found that over £57million of the £421million Household Support Fund (HSF) remains unclaimed.
Around 100 councils have yet to distribute their full share, with 22 authorities holding over £1million each. The HSF, designed to assist struggling families with the rising cost of living, has been extended by the new Labour Government beyond its initial September 30 end date.
Neil Kadagathur, the CEO of Creditspring, explained: "The Household Support Fund provides a lifeline for thousands of families across the UK.
"However, given the huge sums that remain unclaimed, it's clearly not working to its full potential and vulnerable people are missing out on vital support."
Launched in 2021, the fund has been a crucial resource for low-income families. The Government's recently announced extension until April 2025 marks the sixth time the scheme has been prolonged.
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Rachel Reeves has confirmed the extension of the Household Support Fund
GB NEWSThe HSF offers various forms of assistance, including cash grants, vouchers, and help with energy bills.
It also supports families with school uniform grants and supermarket vouchers for those on free school meals during holidays.
Creditspring's analysis shows that many councils are struggling to allocate their full share of the Household Support Fund.
Kadagathur explained: "Whilst the extension of the scheme will benefit a huge number of households, it's hugely important that councils also reassess how they are communicating the support available to boost awareness of the fund as well as simplify the application process."
He warned that without better communication, vulnerable people might "turn to predatory lenders or high-cost loans to make ends meet."
Some residents, such as those with dependent children or receiving council tax reductions, received automatic £300 grants in the summer.
To access the Household Support Fund, eligible households should check their local council's website for specific application processes and criteria.
Those in need are encouraged to visit their local council's website to check for available support and application deadlines. Eligibility criteria vary between councils, so it's important to review local requirements carefully.
According to Creditspring, Walsall Council in the West Midlands has £1,342,860 left to share among residents in need and handed out £300 grant payments automatically. This was for those receiving a council tax reduction or parents with dependent children.
Some may require applicants to claim specific benefits or earn below a certain threshold.
The application process may involve providing evidence of financial hardship. However, in some cases, support is automatically distributed to those claiming certain benefits or with children on free school meals.
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Councils are offering households support to mitigate the cost of living
PASome 80 per cent of local authorities anticipating high demand in the coming months. With the extension of the Household Support Fund until April 2025, families are advised to seek financial guidance if they are in need.
Chancellor Rachel Reeves said: "Extending the Household Support Fund is the right thing to do."
She emphasised that it will "provide targeted support for those who need it most as we head into the winter months".
Secretary of State for Work and Pensions, Liz Kendall, added: "We are extending the Household Support Fund for the next six months because it is a lifeline for people who are struggling with the cost of living."