The Government is being urged to extend the Household Support Fund (HSF) to help protect vulnerable households across the UK.
The fund provided £820 million for local welfare support over the past year, helping millions of households facing hardship to heat their homes, and buy food and other essentials.
More than eight out of 10 councils that responded to an LGA survey say that financial hardship has increased in their areas, just as vital local funding used to support vulnerable households is due to end. Nearly three-quarters of responding councils also said they expect hardship to increase even further over the next 12 months.
The Government has not confirmed if the HSF will be extended, leaving councils and vulnerable people in limbo. This uncertainty is also impacting councils’ ability to set their budgets for next year.
Cllr Pete Marland, Chair of the LGA’s Economy and Resources Board, said: “The Household Support Fund has provided an essential lifeline for our most vulnerable residents, but our survey shows this help is needed now more than ever.
“Now is not the time to scale back support. Many at-risk households continue to face considerable challenges in meeting essential living costs, with demand for support greater than when the fund was first introduced.
“Without an urgent extension of the HSF for at least a year, there is a risk of more households falling into financial crisis, homelessness and poverty.”