£500m for vulnerable households over winter
Vulnerable households across the country will be able to access a new £500m support fund to help them with essentials over the coming months as the country continues its recovery from the pandemic.
The new Household Support Fund will support millions of households in England and will be distributed by councils in England, who know their local areas best and can directly help those who need it most, including for example, through small grants to meet daily needs such as food, clothing, and utilities. Cash will be made available to Local Authorities in October 2021.
The Barnett formula will apply in the usual way to additional funding in England. The devolved administrations will therefore receive up to £79m of the £500m.
Families will also continue to benefit from the energy price cap, recent rise in Local Housing Allowance and increases in the National Living Wage.
Thérèse Coffey, Secretary of State for Work and Pensions, said:
Over the last year, we have helped millions of people provide for their families. Many are now back on their feet but we know that some may still need further support. Our targeted Household Support Fund is here to help those vulnerable households with essential costs as we push through the last stages of our recovery from the pandemic.
Chancellor of the Exchequer, Rishi Sunak said:
Everyone should be able to afford the essentials, and we are committed to ensuring that is the case.
Our new Household Support Fund will provide a lifeline for those at risk of struggling to keep up with their bills over the winter, adding to the support the government is already providing to help people with the cost of living.
This new fund will run over winter and those in need of support should contact their local council who will help them access the fund.
This fund bolsters support from the Warm Home Discount which provides a £140 rebate on energy bills each winter to over 2.2 million low-income households and the Cold Weather Payment which provides £25 extra a week for poorer households when the temperature is consistently below zero.
Earlier this year the government expanded the £221m Holiday Activities and Food programme, which has offered nutritious meals and enriching activities to disadvantaged children across the Easter and Summer holidays, and will do so again this Christmas.
And to further support families with children, the Government has doubled free childcare for eligible working parents, worth up to £5,000 per child every year and increased the value of Healthy Start vouchers in April by over a third, helping disadvantaged women who are pregnant or have children under four to purchase fresh fruit and vegetables, boosting the long-term health of their children.
As the Barnett formula will apply in the usual way to additional funding in England, the devolved administrations will receive up to £79m of the £500m (£41m for the Scottish Government, £25m for the Welsh Government and £14m for the NI Executive). It will be for the devolved administrations to decide how to allocate this additional funding.
Related
Time for change: Duty to report hours for Working Tax Credit returns
During the pandemic, Working Tax Credit customers have not needed to tell HMRC about temporary short-term reductions in their working hours as a result of coronavirus – for example if they were working fewer hours or were furloughed. It is one of several measures HMRC introduced to help those facing uncertainty around their hours.
If a Working Tax Credit customer’s hours temporarily fell because of coronavirus, they have been treated as if they were working their normal hours.
Before 25 November 2021, customers do not need to tell HMRC if they re-establish their normal working hours, but from then, they must do within the usual one-month window if they are not back to working their normal hours shown in their Working Tax Credit claim.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
We introduced this measure last year to help support working families. It is vital that Working Tax Credit claimants who have benefitted from it update HMRC with their working hours if they have reduced, and they won’t return to their normal level before 25 November.
Anyone who is no longer eligible for Working Tax Credit due to a change in their circumstances may be able to apply for other UK Government support, including Universal Credit.
Customers should continue to tell HMRC about any permanent changes to their circumstances within one month – for example if they are made redundant, lose their job or their hours change permanently during this time.
This will ensure only those who are entitled to tax credits receive them, otherwise those ineligible or due a lower rate of payment will have to pay them back later.
Any changes can be easily reported online on GOV.UK, where customers can also check their current Working Tax Credit claim details.
If customers receive tax credits they are not entitled to as a result of a change they will need to repay this money and may also have to pay a penalty if they do not let us know within one month.
HMRC is also reminding claimants that Post Office card accounts are closing. From 30 November 2021 HMRC will stop making payments of Child Benefit, Guardians Allowance and tax credits into Post Office card accounts.
Child Benefit and tax credits customers who use Post Office card accounts to receive their payments will need to notify HMRC of their new bank, building society or credit union account details. HMRC is encouraging customers to act now so they do not miss any payments once their Post Office account closes. They can contact HMRC’s helplines (0345 300 3900 for tax credits or 0300 200 3100 for Child Benefit) or use their Personal Tax Account.