Household Support Fund 2025: will the HSF continue after March 2025 - the future of cost of living payment

• The Household Support Fund (HSF) has provided vital assistance to vulnerable UK households since 2021
• The fund has been extended multiple times, with the latest extension running until March 2025
• There is uncertainty about whether the fund will continue beyond March 2025, with no official announcements yet
• Chancellor Rachel Reeves' Spring Statement on 26 March may offer clarity on the HSF's future
• But economic challenges and government fiscal rules complicate the decision on whether to extend the fund

The Household Support Fund (HSF) has been a crucial element in the UK's efforts to assist vulnerable households with essential costs such as food, energy, and water bills.

The HSF was launched in October 2021, initially as a temporary measure to support households facing financial hardship during the winter months.

It’s since been extended six times, with the latest extension coming last year when Chancellor Rachel Reeves announced the fund would be prolonged until the end of March 2025.

But as the current cut off date looms just a few weeks away, the future of this vital lifeline remains uncertain, with no official announcements regarding its continuation.

So what happens next? Will the HSF be extended once more, or will families and individuals who have relied on its support for the past couple of years suddenly

Reeves is scheduled to deliver the Spring Statement mini-budget on 26 March, which may provide clarity on the fund's fate.

Will the Household Support Fund be extended in 2025?

Despite last year’s announcement extending the HSF until March 2026, recent developments have cast doubt on its future beyond March 2025.

As of the time of writing, there has been no official confirmation regarding the fund's status for the upcoming year, which has raised concerns among both those who receive payments, and local authorities responsible for administering the support.

But the UK government is navigating a challenging economic environment, and is battling higher borrowing costs and sluggish economic growth.

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The Government has said it is committed to reducing debt during the current Parliament, but has set self-imposed rules to borrow only to fund investment, and not day-to-day spending.

Borrowing to fund an extension of the HSF would break these rules - which Reeves has repeatedly said are non-negotiable - unless it is considered an investment in long-term economic stability or growth (which is unlikely given the nature of the fund).

Reeves has also identified a £10 billion gap in spending - one proposal under consideration is freezing health-related benefits, which could save approximately £1 billion annually by 2029.

Either way, global factors, including trade tariffs and the ongoing conflict in Ukraine, have increased economic pressure, complicating financial planning.

When could an announcement be made?

The need for spending cuts have raised concerns about the continuation of the HSF beyond March 2025.

Insiders anticipate "politically painful" welfare cuts - Work and Pensions Secretary Liz Kendall is expected to outline these measures in an upcoming speech, which may include information on the future of the HSF.

The upcoming Spring Statement on 26 March 2025 is also anticipated to provide clarity on the future of the Household Support Fund - but Reeves faces the delicate task of balancing the need to support vulnerable groups amid ongoing economic challenges.

In the meantime, if you are concerned about potential changes to the fund, you should keep an eye out for announcements from the Government and your local council authority.

As the future of the Household Support Fund hangs in the balance, we want to hear your thoughts. How has the fund impacted your community? Do you think it should continue, or is it time for a new approach? Share your opinions in the comments.