Cllr Elizabeth Campbell, the leader of the Royal Borough of Kensington and Chelsea, urges the Chancellor to renew the Household Support Fund which is set to end in April.
Every Conservative Prime Minister over the past fourteen years has had their own individual style of leadership, but they have all been believers in compassionate Conservatism. We saw that compassion in Rishi Sunak during the pandemic, when as Chancellor he reacted to the economic crisis by providing businesses and households with emergency funding.
It will take time for our economy to recover from the disruption of that pandemic and from the two wars on our continent’s doorstep. Despite these challenges, the Government has been determined to protect the most vulnerable. My council, like all London boroughs, has been able to distribute its share of £500m a year to vulnerable households.
This money is distributed by councils to families via the Household Support Fund so that they can meet daily needs such as food, clothing, and heating bills. The fund can cover the purchase of a home appliance such as a microwave, fridge, or heater; essential transport equipment such as a bicycle and helmet or travel tickets; and financial assistance including top-ups for pre-paid energy and water meters, help with energy and water bill debts, food vouchers, and – in exceptional circumstances – housing support. Applicants need to provide evidence of low income and crisis or hardship to help councils assess their application. Every application is carefully assessed and there is little evidence of fraud or ‘gaming’ the system by applicants: the scheme has generally worked well.
Since it began in September 2021, the Household Support Fund has rescued numerous struggling families from the stress and fear of going hungry or cold. The scheme was introduced during the pandemic and, at the time, was not intended to be a long-term scheme. It is due to come to an end this month. However, councils across the country are still engaging with families who have been struggling to get back on their feet financially. In my city, London, there are still many vulnerable people who need help – and many councils are unable to accept any more applications to the Household Support Fund because of the high volume of applications. The funds have already run out. So, I have been urging the Chancellor to use his Budget to renew the Household Support Fund from this April.
The fund was worth £137m to London boroughs in 2023-4. It has provided numerous forms of assistance to low-income residents struggling to make ends meet. Over the past year boroughs have used the fund to pay for 472,000 meals for children during the school holidays and to give emergency food support to 218,000 families across the capital.
In many cases, the impact of the Household Support scheme has been life changing. It has been heartening to see the targeted support that the scheme provides make a difference to families’ lives as they try to rebuild.
London Councils recently shared new analysis revealing that boroughs’ spending on temporary accommodation for homeless Londoners has risen to £90m per month – a figure boroughs describe as ‘unsustainable’ and a ‘bankruptcy risk’. Collectively, boroughs in the capital face a £400m funding shortfall in the coming year and we need to hang onto existing funding streams to maintain the support we provide to those most in need. We are urging the Chancellor to use the Budget to help stabilise local public services, protect the vulnerable from the ongoing cost-of-living crisis, and stimulate economic growth across all communities.
There is always a balance that needs to be struck between, on the one hand, providing tax cuts which provide incentives to grow the economy, and on the other, supporting vulnerable households who – often for no fault of their own – cannot make ends meet. Compassionate Conservatives believe in a strong economy and a supportive state. In this Wednesday’s Budget, Jeremy Hunt has an opportunity to show that he and the Conservative Party will continue to show compassion to those who are most in need.
If this article was of interest, then check out, Councils in crisis: time to stop the cycle of decline.
