Millions will get cost of living payments this winter as government confirms extension of huge support fund

MILLIONS of households are set to benefit from extra cash help to cover the cost of living after a Government fund was extended.

The Department for Work and Pensions (DWP) has announced the Household Support Fund (HSF) will be extended into next year.

The Household Support Fund has been extended until next April
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The Household Support Fund has been extended until next AprilCredit: Getty

The scheme works by giving councils across England a slice of funding to distribute to households most in need.

The most recent round of the fund is ending at the end of this month, but a further £421million will now be distributed to councils to give to residents in need between October and April.

A further £79million will be offered to councils across Scotland, Wales and Northern Ireland.

The latest announcement will see millions of households offered help with the cost of living over the winter.

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Councils get to decide how they distribute their share of the fund, but in most cases offer hard-up households cash grants or energy or supermarket vouchers.

Rachel Reeves, Chancellor of the Exchequer, said: "The £22 billion black hole inherited from the previous governments means we have to take tough decisions to fix the foundations of our economy.

"But extending the Household Support Fund is the right thing to do - provide targeted support for those who need it most as we head into the winter months."

The DWP is urging pensioner households in particular to contact their local councils from October to see what help might be available to them via the HSF after Winter Fuel Payments were scrapped for millions.

The up to £300 payment used to be available to anyone above state pension age, but will be means-tested from this winter.

That means only those on certain benefits including pension credit will qualify.

Liz Kendall, Secretary of State for Work and Pensions, said: "We are extending the Household Support Fund for the next six months because it is a lifeline for people who are struggling with the cost of living.

"The dire inheritance we face means more people are living in poverty now than 14 years ago – and this Government is taking immediate action to prevent a cliff edge of support for the most vulnerable in our society."