£85 million remains unclaimed in Household Support Fund

Analysis of figures from councils across England by responsible lender, Creditspring has revealed that £85 million of the Household Support Fund remains unspent with the 31st March 2024 deadline fast approaching.

The Household Support Fund was first launched in October 2021, and has been extended several times. The current tranche, which has been running since April 2023, unlocked an additional £842 million for local authorities to provide financial support to families that are struggling with rising living costs, providing grants to help them afford essential costs such as energy and water bills, food and other everyday items.

These findings come as a quarter of adults have seen their debt levels spike over the last 12 months. Over a quarter (34%) of those aged 18-34 admit that they’re in more debt now than at the start of 2023 with 32% of young people also saying that their financial position had never been worse going into the new year.

Nearly two million grants have been provided via the extended scheme. However, with councils offering a range of proactive support alongside application-based submissions, it is vital that all funding reaches eligible households – a key step to ensuring this is improving awareness of the support options and simplifying the application process for those who need it most.

Recent research further highlights the financial struggles millions currently face. More than 11 million working-age people in Britain are found to not have basic “rainy day” savings of at least £1,000, with the poorest of households struggling to build up financial resilience amid a particularly tough economic backdrop.

Neil Kadagathur, CEO and Co-Founder of Creditspring, said “With the end of the scheme fast approaching, all councils must ensure that all available support is provided to the struggling households who need it the most.

“With over a dozen councils still to award over £1 million from the Household Support Fund, the race is on to not only boost awareness and simplify the application process so households can apply in time but also to identify vulnerable people who they could proactively provide vital support to.

“Without this support it’s likely that an increasing number of already vulnerable individuals will be forced to turn to high-cost credit products, or predatory lenders. This risks them taking on extortionate debts, pushing them into vicious debt spirals which are notoriously hard to escape from. People need a simple, short-term solution which reduces the risk of accumulating debt and provides access to affordable credit options when they need it most.”