The Government should make the Household Support Fund it has provided to councils permanent to help with the cost of living crisis, council leaders have said.
A report published by the Resolution Foundation think-tank found a typical family is expected to be £2,100 worse off over two years due to the rising cost of living.
The Government has made a £421m Household Support Fund available to county councils and unitary authorities in England to support those struggling the most with the impact of inflation between October 2022 and March.
Today the Local Government Association (LGA) called for this fund to be made permanent to help protect the most vulnerable from cost of living increases.
Chair of the LGA's resources board, Peter Marland, said: ‘Councils are urging the Government to make the Household Support Fund it has provided to councils permanent, alongside greater flexibility so they can ensure it helps people in the greatest need.
‘This would also allow councils to crucially shift their focus from short-term crisis support to investing in preventative services that build financial capability and resilience, such as welfare benefit entitlement checks, debt advice, and employment, health, and housing support.
‘Councils continue to try and fund their own local crisis support schemes but this is increasingly difficult amid ongoing funding pressures.
'Permanent local welfare funding would help councils ensure no one is left behind.'
The Government has announced a year-long extension of the fund in England and associated devolved nation funding worth £1bn but has not told councils whether the allocation formulae, criteria and guidance will be the same.
One council chief executive said the Government's ‘inexcusable delay in confirming arrangements for the grant in 2023-24 means all councils are in the dark about how much money they will have'.
