Almost £60m remains unclaimed in Household Support Fund

Analysis of figures from councils across England by responsible lender, Creditspring, have revealed that over £57 million remains unclaimed from the Household Support Fund with just a month to go before applications to the scheme close.

The Household Support Fund was first launched on 6th October 2021 and has been extended several times – with the current scheme providing £421 million in support due to close on 30th September. The Government has recently confirmed that another round of support will be available through the Household Support Fund until April 2025.

The fund provides financial support to struggling households, providing grants to help them afford essential costs such as energy and water bills, food and other everyday items.

The research from Creditspring also reveals that over 660,000 people have applied to the Household Support Fund for financial support since 01 April 2024.

Additional research from Creditspring highlights the extent of the financial struggles of millions of households across the UK. A fifth (19%) of people think they’ll have to increasingly rely on state benefits to get by – rising to over a quarter (26%) of 18-34 year olds whilst three in ten (28%) people say they are the most financially unstable they’ve ever been**.

A fifth (21%) of people have no savings and are forced to turn to credit whilst over one in ten (13%) people admit they’re reliant on credit to pay bills – rising to a fifth (20%) of 18-34 year olds – whilst 12% of UK adults have been forced to turn to a debt advice charity for support. Household pressures are clearly at breaking point and access to additional financial support is vital.

Energy regulator Ofgem recently announced a 10% increase to the energy price cap – rising £149 to £1,717 a year – as households are set to face rising heating bills this winter. This followed a recent government announcement removing winter fuel payments for around 10 million pensioners who are not receiving pension credit or other means-tested benefits.

Neil Kadagathur, CEO and Co-Founder of Creditspring, said “The Household Support Fund provides a lifeline for thousands of families across the UK. However, given the huge sums that remain unclaimed, it’s clearly not working to its full potential and vulnerable people are missing out on vital support.

“Whilst the extension of the scheme will benefit a huge number of households, it’s hugely important that councils also reassess how they are communicating the support available to boost awareness of the fund as well as simplify the application process. This will help to ensure that not only as many people are benefiting from these payments as possible, but also these vulnerable people aren’t forced to turn to predatory lenders or high-cost loans to make ends meet.”