MILLIONS of hard-up households will get extra help from the extension of a huge free cash fund later this year.
Chancellor Jeremy Hunt has extended the Household Support Fund (HSF) for the fifth time – adding a further £500million to the pot.
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Funding for the fourth round of the HSF was due to dry up for good on March 31.
However, the new support will now extend the HSF scheme for another six months.
When delivering his Spring Budget, the Chancellor said: “The Household Support Fund was set up on a temporary basis and due to conclude at the end of this month.
“Having listened carefully to representations from the Joseph Rowntree Foundation, the Trussell Trust and the Hon Members for East Ham, Colchester, Ruislip, Northwood and Pinner and Suffolk Coastal among others, I have decided that – with the battle against inflation still not over – now is not the time to stop the targeted help it offers.
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Spring Budget at a glance
“We will therefore continue it at current levels for another six months.”
The scheme works by handing councils up and down the country a slice of funding available to dish out to Brits in need.
Each local authority gets a different portion of funding depending on the size of the catchment area, population, and number of vulnerable households.
The voucher or grant amounts vary by location, so you must check to see what you can get and how your council will pay you.
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The fund is often aimed at those who are already on low incomes and claiming help.
But you don’t always need to be on benefits or Universal Credit to be eligible for the cash.
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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 by visiting https://www.gov.uk/find-local-council.
Experts Weigh In
Consumer champion and founder of MoneySavingExpert.com Martin Lewis welcomed the news of the scheme’s extension on X (formerly Twitter).
He said: “Household Support Fund extension by six months is welcome (probably will need extending again after).
“This is money for local councils to help the most desperate and the cost of living crisis means sadly there’s high demand.
“Would’ve been awful to cut it off right now.”
Councillor Shaun Davies, chair of the Local Government Association, said: “We are pleased the Chancellor has extended the Household Support Fund, which has helped millions of households facing hardship. It is disappointing that we had to wait until the very last minute for an extension, and that it is only for a short period.
“Three-quarters of councils expect hardship to increase further in their area over the next 12 months.
“The Government needs to use the next six months to agree a more sustainable successor to the HSF.”
How much could you 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, has provided cash grants of up to £200 through the HSF in the past.
Households living in North Yorkshire have been able to secure supermarket vouchers worth up to £450 as part of the fourth instalment of the scheme.
Those living in West Northamptonshire earning less than £450 per week could also apply for cash grants worth up to £300.
How to 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, visit https://www.gov.uk/find-local-council.
Once you’ve found your council, there should be information on how to apply for 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.
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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 it’s best to ring them up and ask for more information.
What is the Budget?
THE Budget is big news and where you’ll often hear announcements about taxes. But what exactly is it?
The Budget is when the Government outlines its plans for the economy including taxation and spending.
The Chancellor of the Exchequer delivers a speech in the House of Commons and announces plans for things like tax hikes, cuts, and changes to Universal Credit and the minimum wage.
At the same time, the Office for Budget Responsibility (OBR) publishes an independent analysis of the UK economy.
Usually, the Budget is a once-a-year event and usually takes place in the Autumn, with a smaller update known as the Spring Statement.
But there have been exceptions in recent years when there have been more updates, or the announcements have taken place at different times, for example during the pandemic or when there is a General Election.
On the day of the Budget, usually a Wednesday, the Chancellor is photographed outside No 11 Downing Street with the red box.
He then heads to the House of Commons to deliver his speech, at around 12.30 following Prime Minister’s Questions (PMQs).
Changes announced in the Budget are sometimes implemented the same day, while others may not have a set date.
For example, a change to tobacco duty usually happens on the same day, pushing up the price of cigarettes.
Some tax changes are set to come in at the start of a new tax year, which is April 6.
Other changes may need to pass through Parliament before coming into law.
