The Government should make the Household Support Fund it has provided to councils permanent to help with the cost-of-living crisis, local authority leaders say.

The annual Living Standards Outlook 2023 report, published today by the think tank Resolution Foundation, shows that a typical family is set to be £2,100 worse off over two years due to the rising cost of living.

Last year the Government made a £421m Household Support Fund available to county councils and unitary authorities in England to support those struggling the most with the impact of inflation. The funding covers the period 1 October 2022 to 31 March 2023.

The Local Government Association (LGA) today called for this fund to be made permanent in order to help protect the most vulnerable from cost-of-living increases.

Responding to the Resolution Foundation’s report, Cllr Peter Marland, chair of the Local Government Association’s (LGA) Resources Board, said: ‘Protecting the most vulnerable from the rising cost of living is a critical priority for councils. Targeted Government support is helping but this crisis will not end overnight.

‘Councils are urging the Government to make the Household Support Fund it has provided to councils permanent, alongside greater flexibility so they can ensure it helps people in the greatest need.

‘This would also allow councils to crucially shift their focus from short-term crisis support to investing in preventative services which build financial capability and resilience, such as welfare benefit entitlement checks; debt advice; and employment, health, and housing support.

‘Councils continue to try and fund their own local crisis support schemes but this is increasingly difficult amid ongoing funding pressures. Permanent local welfare funding would help councils ensure no one is left behind.’