Household Support Fund 2024: will council applications be extended, when does HSF end - what have Labour said?

• The Household Support Fund is set to continue until September 2024
• The fund has been extended four times since its introduction in October 2021
• The new Labour government is reviewing the future of the HSF
• Labour’s Baroness Sherlock has said there is no current budget provision for an extension
• But there is significant public and political pressure for Labour to extend the fund further
• An announcement about the HSF's future may be made before the Autumn Budget

As of the time of writing, the Household Support Fund (HSF) is officially scheduled to continue until September 2024.

But whether the fund is extended again beyond this date is dependent on a number of factors.

These include the budget decisions and policy priorities of the new Labour government, and while Sir Keir Starmer’s administration has expressed a commitment to addressing the cost-of-living crisis, specific details on the HSF’s future have not been fully outlined.

Initially designed to provide financial assistance to households struggling with essential costs during the cost-of-living crisis, the fund has been extended four times so far - we’re currently in the fifth wave of funding.

But will it be extended for a fifth time? What is Labour’s view on the fund, and when might we expect an announcement on its future? Here is everything you need to know about it...

What is the Household Support Fund?

The Household Support Fund was introduced in October 2021 by the Conservative government, specifically under the leadership of then-Prime Minister Boris Johnson and Chancellor Rishi Sunak.

It was introduced in response to the escalating cost-of-living crisis, exacerbated by factors such as rising energy bills, inflation and the economic impacts of the Covid-19 pandemic.

The fund was aimed at providing targeted support to low-income and vulnerable households struggling to meet essential costs like food, utilities and other necessities. It was designed as a temporary measure to offer immediate relief to those in financial distress during a period of significant economic uncertainty, but has since been extended four times.

Local councils are allocated an amount of money by the government, and are then responsible for distributing these funds to eligible residents within their catchment.

The amount of money distributed to local councils is based on various factors, including the size of the population and the level of need in each area, allowing councils to tailor support to their communities.

Will the Household Support Fund be extended again?

As mentioned, the Household Support Fund is officially scheduled to continue until September 2024 at the time of writing.

There have been discussions about potentially expanding or adjusting the HSF, with the government facing calls to extend the crucial support scheme by MPs pushing for its continuation. But official plans or announcements regarding the HSF's continuation or any changes to its structure after September 2024 have not been confirmed.

Labour’s Baroness Maeve Sherlock has said that the new administration is "reviewing all policies," including the vital relief fund. During a House of Lords session, Baroness Sherlock, the Department for Work and Pensions (DWP) under-secretary of state, said: "When I looked at how the financing (for HSF) had been provided, I saw that the money had been provided for only six months.

“Therefore, there is currently nothing in the budget to go beyond that. But I take [the] broader point about cliff edges and short notice being unhelpful.

“We need to get back to a space where we can support councils with longer, multiyear funding to give them the kind of stability they need but simply have not had recently. At this stage, we do not know what the future of the fund is."

Though the scheme was introduced by the Conservative government, Labour has expressed a strong commitment to addressing the cost-of-living crisis and supporting low-income households.

This aligns with the goals of the Household Support Fund, making it reasonable to assume that they would extend the HSF or continue a similar form of support. Such a decision will depend on the Labour government's budget priorities and financial constraints. If extending the fund aligns with their broader economic strategy and available resources, it is more likely to continue.

And if there is significant public and political support - which clearly there is - for the fund, Labour may be further inclined to extend it.

When then-Chancellor Jeremy Hunt extended the fund for a fifth time in March 2024, the six-month extension was seen as a positive step, though campaigners and councils argued it was a "temporary fix", and more long-term solutions were needed.

Hunt faced significant pressure to continue the HSF beyond March and said that “now is not the time to stop the targeted help it offers”.

Council leaders from across the political spectrum, along with nearly 90 parliamentarians, called for an extension of the fund at the time.

When could an announcement be made?

Given that the Household Support Fund is set to end in September, the government is likely to make an announcement regarding its future either before the fund's expiration, or as part of the upcoming Autumn Budget.

Since the Autumn Budget will likely fall after the fund has come to an end (it is usually delivered in November), Labour are probably more likely to make an announcement before then.

Addressing the future of the HSF before the budget allows for clear communication to the public, and could help provide reassurance for affected households.

What are your thoughts on the future of the HSF? Do you think it should be extended, or are there other ways to address the cost-of-living crisis? Share your opinions and experiences in the comments section.