DWP issues major update on huge free cash fund offering households up to £1,000 in extra cost of living payments

A MAJOR update has been issued before the closure of a huge free cash fund offering households up to £1,000.

The support is provided through the £842million Household Support Fund (HSF) scheme, which is due to close on March 31.

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The support has been extended four times since it was launched, but until now, the government has refused to confirm if it will be extended.

However, The Sun understands that the DWP has not ruled out a fifth HSF extension.

The department will evaluate the merits of its most recent extension and confirmed that a fifth extension of the HSF is “under review“.

Under the HSF, each council gets a different portion of funding depending on the size of the catchment area, population, and need.

Households could get supermarket vouchers or cash grants worth up to £1,000.

But the exact amount you can get will depend on where you live, so you’ll have to check to see what you can get and how your council will pay you.

Some councils will make payouts automatically and others will require you to fill in an application form.

Other councils may use funding from the scheme to help make homes more energy efficient.

You’ll usually need to be on a low income to receive the help.

Industry bodies, including the Local Government Association, are actively calling on the government to renew funding for the scheme after it closes on March 31.

Cllr Pete Marland, chair of the Local Government Association’s economy and resources board, said: “Councils are united in the view the Household Support Fund must be continued beyond the end of March for at least a year.

“Demand for local welfare support remains at record levels with the cost of energy, housing and other essentials remaining exceptionally high relative to income and continuing to rise.

“Without an extension, there is a risk of more households falling into financial crisis and homelessness.”

Halide Kalfaoglu, benefits expert at Turn2us, said: “The government must extend it and create a long-term strategy for local crisis support in England.

“Due to this uncertainty, we would encourage people to apply for support with their council as soon as possible.”

Last week, the DWP warned Sun readers struggling with their energy, water and other essential bills to contact their local authority and ask about the HSF before it’s too late.

What is the Household Support Fund?

The Household Support Fund was first launched in October 2021 to help Brits pay their way through winter amid the cost of living crisis.

Councils up and down the country got a slice of the £500million funding available to dish out to Brits in need.

It was then extended for a second time in the 2022 Spring Budget and for a third time in October 2022 to help those on the lowest incomes with the rising cost of living.

The DWP then confirmed a fourth extension of the scheme through to March 31, 2024.

The help you can get varies depending on who your local council is, as well as your own personal circumstances.

But if you’re eligible, you should be able to get free cash and vouchers to help pay for things like heating your home or your weekly grocery shop.

Check with your local council to find out what support is available and the eligibility criteria.

How much can I get?

The exact amount of money available to you through the HSF scheme will depend on your council’s criteria.

For example, Birmingham City Council, the country’s largest local authority, provides cash grants of up to £200 through the HSF scheme for households currently facing financial hardship.

The funds are intended to help with food costs and energy payments.

To join the waiting list, you must complete an application form by visiting https://hsfbirmingham.online/enquiry/.

A team member in your local area will contact you to complete your full application before March 31.

Households living in North Yorkshire must act before February 21 to secure supermarket vouchers worth up to £450.

If you received a letter telling you you’re eligible for a payment, you must select your e-vouchers by February 20.

To do this, visit https://www.northyorks.gov.uk/benefits/household-support-fund.

Residents who received housing benefit on, or between, January 26, 2023, and February 25, 2023, but did not qualify for the cost of living payment made in April and May 2023 for people on low-income benefits or tax credits can get £450.

Residents getting the maximum discount to pay their council tax bill through the means-tested council tax reduction scheme, as of August 14, 2023, can get £110.

Support is available for West Northamptonshire residents earning less than £450 per week.

Households that make an application before March 31 could get a cash grant worth £300.

Visit https://www.westnorthants.gov.uk/claiming-benefits/household-support-fund to find out more.

How do you apply?

To get the help, you’ll need to check with your council – as local authorities are in charge of distributing the funding.

To find your local council, use the gov.uk council finder tool.

Once you’ve found your council, there should be information on how to apply for the funding on its website.

Each council will have a different application process – so exact details on how to apply will vary depending on where you live.

That means that the eligibility requirements to access the fund could also vary – it’s best to check with your local council for more details.

Some councils won’t require you to apply for the help and they’ll contact you about it instead if you qualify.

If there’s no information on your council’s website, then its best to ring them up and ask for more information.

This post first appeared on thesun.co.uk