will receive £3.56 million to help residents in need.
The Department for Work and Pensions (DWP) has confirmed an extension to the Household Support Fund (HSF) for an additional six months, providing vital support for vulnerable households in Nottingham and across England.
This extension, announced on 2nd September 2024 by the Secretary of State for Work and Pensions, means that the HSF will continue from 1st October 2024 until 31st March 2025, backed by a further £421 million in funding.
The Household Support Fund was initially launched in October 2021 to support vulnerable individuals facing financial difficulties, particularly with essential living costs such as food, energy, and housing.
In response to the ongoing cost-of-living crisis, the fund has now been extended multiple times, with each extension intended to ease the burden of rising living costs on those most in need. The current round of funding ensures that the support will continue through the winter months, a particularly challenging period for many households due to increased energy expenses.
The fund is distributed to County Councils and Unitary Authorities like Nottingham City Council, which in turn work closely with local partners to reach households experiencing economic hardship.
Nottingham City Council’s allocation, totalling £3.56 million, will be directed at alleviating immediate needs, such as food and energy costs, as well as providing broader support like household essentials that could reduce bills in the long term. The Council says it will also focus on offering preventative support, which aims to foster long-term financial stability for vulnerable residents.
Key Changes to Fund Usage
The latest guidance issued by the DWP includes several important changes to the management and use of the Household Support Fund. Authorities are now encouraged to use part of the fund to deliver provisions that have a sustainable, long-term impact on households. This could include purchasing household items that help reduce energy bills, such as energy-efficient appliances, as well as preventative support aimed at reducing future financial vulnerability. Authorities must also ensure that their delivery plans and spending proposals are signed off by the Section 151 Officer and a responsible Cabinet Member, adding a layer of accountability to the allocation of funds.
Furthermore, all authorities receiving funding are required to submit detailed Delivery Plans and Management Information (MI) returns at two points during the funding period. An interim MI return is due by 31st January 2025, covering the first three months of the scheme, and a final MI return will be required by 25th April 2025. This ensures transparency in how the funds are being used and helps track the effectiveness of the support provided.
Nottingham’s Approach to Supporting Vulnerable Households
Nottingham City Council, which has been proactive in supporting its vulnerable residents, is expected to use this funding in close collaboration with local partners to ensure it reaches the most affected households. The Council will continue to focus on providing immediate assistance for food, energy, and water costs, while also working on schemes that will have a long-term positive impact, such as insulation projects and energy-saving initiatives.
The Council will also ensure coordination with district councils and community organisations to effectively identify households in need. Special emphasis will be placed on ensuring that vulnerable groups, such as low-income families, pensioners, and individuals with disabilities, are prioritised. Additionally, the DWP has committed to sharing data on Universal Credit, Pension Credit, and Employment and Support Allowance claimants, which will enable Nottingham City Council to better target their resources towards those most in need.
National Picture and Local Allocation
The £421 million extension of the HSF comes as the cost-of-living crisis continues to affect households across the UK. Rising energy prices, inflation, and economic uncertainty have placed immense pressure on many families, particularly during the colder months. The DWP’s decision to extend the fund aims to provide a safety net for vulnerable communities at a time when it is needed most. The allocation to Nottingham, amounting to £3.56 million, is calculated based on the population size of the authority weighted by the English Index of Multiple Deprivation, reflecting the relative needs of different communities.
Across the country, major urban centres have received significant allocations. Birmingham, for instance, was allocated £12.79 million, while Leeds received £7.1 million. Meanwhile, smaller authorities like Rutland received just over £157,000, demonstrating the varying scale of support required depending on local demographics and levels of deprivation. Nottingham’s allocation recognises the significant challenges faced by many of its residents, with high levels of deprivation compared to national averages.
Challenge Ahead
Despite the additional funding, authorities are facing increasing challenges in effectively reaching all those in need. The DWP has highlighted that no underspend can be carried forward, as each iteration of the Household Support Fund operates as a new grant with distinct conditions. This puts pressure on authorities to ensure the funding is spent efficiently and reaches those who require it most within the specified timeframe.
Authorities are also required to participate in knowledge-sharing sessions, organised by the DWP, to learn from each other’s experiences and discuss best practices. These sessions aim to enhance the effectiveness of the HSF and ensure that the support provided is as impactful as possible. Nottingham City Council will be engaging in these events to refine its approach, utilising the experience gathered from previous rounds of funding.
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