UK households set to be handed NEW Cost of Living payments worth up to £550

Millions on low-incomes are set to get Department for Work and Pensions (DWP) cost of living payments as Rachel Reeves reveals a £1billion Autumn Budget boost. Rachel Reeves confirmed in her Labour Party Budget today the Household Support Fund (HSF) will be extended from next year.

The Chancellor said: "We will provide £1billion from next year to extend the Household Support Fund and Discretionary Housing Payments, to help those facing financial hardship with the cost of essentials." Budget documents reveal the extension will apply to the 2025/26 financial year.

The amount households receive is up to the local authority - but previous payments have ranged up to £550. Richard Lane from debt charity StepChange, welcomed the extension of the "vital" Household Support Fund. "In the long term we’d like to see the government implement an effective and permanent local crisis support scheme," he added.

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It comes after Labour MP and chairwoman of the Work and Pensions Committee Debbie Abrahams raised “genuine concerns about those people who are just above that threshold but still remain in poverty”, during a Commons question on the Government’s plans to means test the winter fuel allowance.

The Oldham East and Saddleworth MP added: “Are there any other mitigations that (Work and Pensions Secretary Liz Kendall) will be undertaking to ensure those pensioners living in poverty, and particularly disabled pensioners, aren’t going to fall foul of this?”

Ms Kendall replied: “Alongside our work to increase pension credit uptake, I would also say that the household support fund is available for those just above the pension credit level.” Speaking in the Commons, Rachael Maskell (York Central) said: “We are really, really worried now, as winter is approaching, about the impact this is going to have, particularly on the health of older people.

“Will she look at the work that has been done by Energy Systems Catapult and NHS Gloucestershire in social prescribing to ensure that people can receive energy payments that way?”

Work and Pensions Secretary Liz Kendall replied: “I am determined to bring forward the merger of housing benefit and pension credit, which the former government delayed for years.

“And I very much agree with the need to bring together social prescribing, help from the household support fund, and other areas, to make sure pensioners get all the help they need.”