‘I’m extremely concerned about making ends meet following the Chancellor’s Spring Statement’s lack of support.
However, what exactly is the Household Support Fund, and how do I apply?’
That is the question that many of us have been asking in the aftermath of Rishi Sunak’s Spring Statement this week.
The Spring Statement is when the Chancellor provides an update on the state of the economy, as well as proposals and initiatives to address any issues that arise.
This year, as the UK faces its worst cost-of-living crisis in decades, many hoped for some measures to help people cope with rising bills, taxes, and cost of living relative to inflation. They were, for the most part, disappointed.
The Chancellor did announce doubling the size of the Household Support Fund from £500 million to £1 billion. However, what is it and how does it affect you? Here is a summary.
The Household Support Fund is a term that refers to a fund established to assist low-income households
The Household Support Fund was established last year to assist individuals who are struggling to pay their bills or who fall into the ‘vulnerable’ category.
You apply for a grant from your local council’s fund. The funds are provided on a ‘discretionary’ basis, which means that councils determine who receives what (and how) based on your individual circumstances. This results in considerable variation in who gets what across the United Kingdom.
You may be offered vouchers rather than cash – presumably because councils can obtain a better deal by purchasing these in bulk from participating retailers.
Will the fund assist me in paying off my debts?
Not always. Due to the way the funds are distributed, your council has complete control over how the money is distributed – and payments are unlikely to be substantial.
Numerous councils with whom I’ve spoken are discussing payments of up to £200, with a mix of cash and vouchers being offered in many cases.
The payments are intended to assist those in need with major expenses such as food and energy.
Who is eligible for payment?
Because the individual councils will establish criteria based on the needs within their respective catchment areas, there will be some variation here, but you can begin the process by visiting your local council’s website.
Simply enter ‘Household Support Fund’ in the search bar.
Due to the numerous variations, it is only possible to state who might qualify in very broad terms. However, as a starting point, if you are currently struggling to pay your bills, are classified as ‘vulnerable,’ or have children and are experiencing financial hardship, you may be eligible to claim.
Certain councils require applicants to be over the age of 18, though I’m informed that others accept applications from those as young as 16. In summary, do not assume you will be excluded; instead, give it a try.
Get free assistance with all your bills at www.resolver.co.uk.
How about my utility bill?
The scheme is in addition to the government’s previously announced energy rebate.
This saves you £200 on your October bill. However, you cannot opt out of this and you cannot ‘gift the money’ to someone in greater need. Oh, and because this is a loan, we will all repay it over a five-year period beginning in April 2023.
Additionally, a £150 discount on your Council Tax bill will be applied beginning in April. This is a rebate that is non-refundable.
What about the United Kingdom of Scotland, Northern Ireland, and Wales?
The funding is primarily going to English councils, though just under £80 million of the initial £500 million was set aside for the devolved nations.
What other resources are available to assist me with financial difficulties?
Of course, for many people, this will simply not suffice. Bear in mind that all regulated businesses in the UK are required to assist you if you are experiencing financial difficulties and should develop plans to assist you in avoiding debt or obtaining breathing space.
Inquire whether they have an ombudsman or dispute resolution service if they do not assist you sufficiently.
There are numerous excellent free organisations that can assist you – but be cautious when conducting general online searches, as many firms that charge money pretend to be ‘official’ free services in order to attract your business.
Money Helper is a new, free service designed to make locating the appropriate assistance faster and easier.
It combines the Money Advice Service, the Pensions Advisory Service, and Pension Wise, three long-established government-backed financial guidance providers. There are numerous tips and assistance available, and yes, you can communicate with other people.
StepChange is the most comprehensive free debt advice service in the United Kingdom. They assist you in regaining control of your finances and lives. Avoid paying for debt management services when StepChange is free and available to you.
What alternative energy sources are available?
Payment for Winter Fuel
The Winter Fuel Payment may provide you with between £100 and £300 to help cover the cost of your heating bills during the winter.
To qualify, your date of birth must be on or before 26 September 1955, and you must have lived in the UK for at least one day during the ‘qualifying week’ – which runs from 20 to 26 September 2021 this year.
If you meet the above eligibility criteria, you are automatically eligible for the Winter Fuel Payment if one of the following applies:
You receive an additional social security benefit (but not Housing Benefit, Council Tax Reduction, Child Benefit or Universal Credit).
You are entitled to a state pension; or
If you do not receive either of these, you must file a claim for the payment. This must be completed by the end of March 2022 for winter 2021/2022.
Payment for Cold Weather
If you receive certain benefits, such as pensions, income support, income-based Jobseeker’s Allowance or Employment and Support Allowance, Universal Credit, or Mortgage Interest Support, you may be eligible for a Cold Weather Payment.
This is a payment of £25 for every seven consecutive days of extremely cold weather between 1 November 2021 and 31 March 2022 – defined as temperatures of zero degrees Celsius or lower.
You should not need to apply for a Cold Weather Payment; if you are eligible, it should be paid automatically, and you can check your eligibility on the Government’s website.
Discount for a Warm Home
If you are eligible, the Warm Home Discount could save you £140 on your electricity bill this winter – or possibly even on your gas bill if your supplier is also your provider for both. The discount applies to your bill only between October 2021 and March 2022.
You must be a member of either the ‘core group’ or the ‘broader group’ to be considered eligible, and there are distinct application processes for each.
The so-called ‘core group’: This is for those who meet all of the following criteria on 4 July 2021:
Your energy provider is a participant in the programme. The electricity bill bears your (or your partner’s) name.
You or your partner is eligible for pension credit’s guarantee credit component.
This year, the Warm Home Discount scheme began on 18 October 2021, and those who qualify should have received correspondence from the scheme’s supplier. By 31 March 2022, your discount will be applied to your bill.
If you do not receive this by 31 December 2021 and believe that you meet all of the above criteria, contact the Warm Home Discount scheme helpline.
The ‘broader group’ includes those who do not qualify for Pension Credit’s Guarantee Credit component but are on a low income or receive certain means-tested benefits.
However, your energy supplier must participate in the scheme and you must remain with them until the discount is applied.
In these instances, you must contact your energy supplier directly. There is a limit to the number of discounts your supplier can offer, but if you believe you are eligible, contact your supplier immediately to confirm eligibility and learn how to apply.
Additionally, your energy provider can assist.
Energy suppliers are required by regulator Ofgem to work with you to agree on a payment plan that you can afford if you’re having difficulty paying your energy bills.