“We are pleased the Chancellor has extended the Household Support Fund (HSF), which has helped millions of households facing hardship. It is disappointing that we had to wait until the very last minute for an extension, and that it is only for a short period.
Responding to the Budget, Cllr Shaun Davies, Chair of the Local Government Association, said:
“We are pleased the Chancellor has extended the Household Support Fund (HSF), which has helped millions of households facing hardship. It is disappointing that we had to wait until the very last minute for an extension, and that it is only for a short period. Three-quarters of councils expect hardship to increase further in their area over the next 12 months.
“The Government needs to use the next six months to agree a more sustainable successor to the HSF. Councils need certainty and consistent funding to efficiently maintain the staff, services and networks that help our most vulnerable residents. Without this we risk more people falling into financial crisis as we head into winter.
“It is disappointing that the Government has not announced measures to adequately fund the local services people rely on every day. Councils continue to transform services but, given that core spending power in 2024/25 has been cut by 23.3 per cent in real terms compared to 2010/11, it is unsustainable to expect them to keep doing more for less in the face of unprecedented cost and demand pressures.
“Councils of all political colours are starting this financial year in a precarious position, and having to scale back or close a wide range of local services, so the continued squeeze in public spending in the years ahead is a frightening prospect for communities.
“This year also saw the sixth one-year settlement in a row for councils. Keeping them on a financial drip feed in this way has led to the steady weakening of local services. Councils need greater funding certainty through multi-year settlements to prevent this ongoing decline but also to ensure key national government policies – such as boosting economic growth, creating jobs and building homes - can be achieved.”
Notes to editors
LGA analysis shows cost and demand pressures have added £15 billion (28.6 per cent) to the cost of delivering council services since 2021/22. Almost two thirds of spending for councils with social care responsibilities was spent on services for adults and children – this is up from 56.5 per cent in 2016/17.
An LGA survey found 85 per cent of councils said they would still have to make cost savings to balance their 2024/25 budget, despite extra government funding. Over half (52 per cent) of all respondent councils anticipated having to make cost savings within at least three different neighbourhood services.
LGA Local Government Budget Setting Surveys 2024/25
More than 8 out of 10 of the councils that responded to an LGA survey say that financial hardship has increased in their areas just as vital local funding used to support vulnerable households is due to end. Almost two thirds of respondents (62 per cent) said they could provide no additional discretionary funding to replace what is lost from the end of the Household Support Fund, whilst just under a fifth of respondents (17 per cent) said that alongside the fund ending, they would also be reducing their own local welfare discretionary funding due to financial pressures.
LGA Household Support Fund survey
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