Councils warn on Household Support Fund while Scottish fuel payments axed

More than four out of five councils in England expect demand for welfare support to increase over the winter, according to the Local Government Association.

However the Household Support Fund, which is the main route for councils to provide assistance, will close in September as central government funding will run out. This has left six in 10 local councils saying they will be unable to provide extra welfare support.

The Household Support Fund was introduced by the previous government in 2021 aimed at helping people struggling to buy food, pay bills and cover other essentials.

A spokesperson for the End Fuel Poverty Coalition, commented:

“The Household Support Fund is one of the last lines of defence against poverty for hard-pressed families and vulnerable people.

“We have publicly commended the Government in taking some of the long term measures to tackle high energy bills, such as the drive for more renewable energy and a Warm Homes Plan. But these solutions will take time to bring down bills.

“In the meantime, households of all ages will need more support from the Government to stay warm this winter, not less.

“As well as extending the Household Support Fund, we urge the Chancellor to rapidly consult with consumer groups to reverse planned changes to Winter Fuel Payments, to introduce support to end energy debt and expand the Warm Homes Discount.”

The Scottish Government has also now outlined how the UK Chancellor’s cuts to winter fuel payments will affect pensioners in Scotland.

Plans to means-test Winter Fuel Payment in England and Wales will see the Scottish Government’s funding for the scheme cut by up to £160 million.

The Winter Fuel Payment UK benefit was due to be replaced by a Scottish alternative – but ministers have confirmed it will be means tested, while the roll out has been delayed.

Age Scotland said the government in Edinburgh has been left with no decision but to replicate plans to means-test the Winter Fuel Payment.

Frazer Scott, chief executive of Energy Action Scotland, commented:

“The UK Government has left little choice for the Scottish Government but to remove this vital support from hundreds of thousands of older households.

“It is a real body blow for pension age households struggling to pay for unaffordable energy.

“Confirmation of the loss of this income for budget conscious older households will undoubtedly put additional pressure on health and advice services putting health at risk. This is not a fairer system, it widens inequalities.

“Deeper and more targeted support is need to ensure that older people can stay warm this winter and help them avoid unrepayable debt. A reformed support not a wholesale removal from many who are just above the level of means tested benefits.”

The End Fuel Poverty Coalition spokesperson added:

“This is a decision essentially made in Westminster by the Chancellor, but it is pensioners in Scotland and across the rest of the UK that will pay the price.”