Household Support Fund - letter to the Chancellor of the Exchequer

Dear Chancellor of the Exchequer,

Household Support Fund 2024/25

We are writing to you on behalf of Islington to urgently request the continuation of the Household Support Fund (HSF) into the financial year 2024/25. The HSF has played a pivotal role in mitigating the impact of the pandemic and the cost-of-living crisis in our borough, and its continuation is vital for our lowest income residents.

The recent Autumn Statement did not address the continuation of the HSF, raising concerns locally. We understand that discussions with the Treasury are ongoing, and while no final decision has been made, we are writing to emphasise the critical importance of extending the fund.

Islington Council has made good use of the HSF, distributing over £4.4 million in the financial year 2023/24 alone. Since the start of the fund in October 2021, Islington has contributed to a total distribution of over £11 million, effectively addressing the immediate challenges posed by the pandemic and the cost-of-living crisis. This has included around half of our total funding being used to tackle holiday hunger. We have used the remaining funding to support a range of overlooked households. These include, assisting our least financially resilient households, other households that have missed out on the Government cost-of-living support, low-income carer households, low-income pensioner households and care leavers.

The HSF has given Islington Council flexibility in distributing funds, tailoring support to the specific needs of our community. This targeted approach has been crucial in addressing the unique challenges faced by our residents during these challenging times.

As the cost-of-living crisis is far from over, we urge you to consider the impact of discontinuing the HSF on Islington residents who rely on this crucial support. We also acknowledge and appreciate the endorsement of the Work and Pensions Committee for the continuation of the Fund. In their recent inquiry report addressing cost-of-living support payments, they urged the government to 'maintain the Household Support Fund as it is an important safety net for those ineligible for these payments and other means tested benefits’.

We note with concern Mims Davies MP response to Stephen Timms MP on 28 November that ‘no further decisions have been taken on the Household Support Fund’. We request that you provide councils with early notice, preferably before Christmas, regarding the allocated value of the Household Support Fund for the fiscal year 2024/25.

We appreciate your attention to this matter and understand the complexities involved in budgetary decisions. We believe that the continuation of the HSF is essential to upholding our commitment to creating a more equal borough and safeguarding those most vulnerable in our community.

Yours sincerely,

Councillor Kaya Comer-Schwartz
Leader of Islington Council

Councillor Diarmaid Ward
Deputy Leader and Executive Member for Finance, Planning, and Performance

(sent 18 December, 2023)