Households in England handed new £550 cost of living payments from DWP

Households in England will be handed up to £550 in cost of living payments from the DWP in a bid to help people struggling this winter.

Labour Chancellor Rachel Reeves has already axed the automatic £300 Winter Fuel Payment for pensioners but today announced that the Household Support Fund, which was due to end in October, has been extended for a further six months.

The fund hands cost of living payments to households up to the value of £550 and sees local councils distribute the support in the form of both direct cash payments and food and toiletries vouchers to spend.

Because the Household Support Fund is devolved, the funds are sent out directly by councils and each council in England has a different way of giving the money out.

Some give the money to those on certain benefits, others simply ask that those who feel they are struggling get in touch.

The government announced today that the Household Support Fund will be extended, which means millions of people could apply for payments of up to £550 each.

The plan is also being put in place in Wales and Scotland but the devolved governments can decide how to spend their cash with their own schemes.

The DWP said it was “Welcome news for the millions of households living on precarious incomes across the UK. For people who contact us in financial crisis, access to immediate support to cover food costs or pay for essentials is often a lifeline.

“The £421m extension gives certainty to Local Authorities across England over the winter months – up until April 2025 – as they work to help those struggling with the cost of energy, food, and water.

“Many councils also use the Fund beyond emergency support, including working with local charities and community groups to provide residents with key appliances, school uniforms, cookery classes, and items to improve energy efficiency in the home.

“Secretary of State for Work and Pensions, Liz Kendall MP, said: "We are extending the Household Support Fund for the next six months because it is a lifeline for people who are struggling with the cost of living.

"The dire inheritance we face means more people are living in poverty now than 14 years ago – and this Government is taking immediate action to prevent a cliff edge of support for the most vulnerable in our society.

"At the same time, we are taking action to fix the foundations of our country through our plans to grow the economy, make work pay, and Get Britain Working again.”

The End Fuel Poverty Coalition said it is “the bare minimum the Government needed to do this winter and it is a positive first step that ministers have indicated it will continue”.

The coalition added: “But as the Winter Fuel Payment axe plunges more pensioners into fuel poverty, the Fund may prove to be inadequate as more vulnerable older people turn to local authorities for help and assistance.”