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Thousands of households could see direct payments up to £400 hit their bank accounts

Dominic Smithers

Published 
| Last updated 

Thousands of households could see direct payments up to £400 hit their bank accounts

Thousands of households up and down the country could receive hundreds of pounds over the coming months.

As part of a new government scheme, low-income households are set to receive a cash injection to help them through the cost of living crisis.

Approved by the UK government, an extra £842 million is being dished out as part of the Household Support Fund, which is aimed at those most in need.

The new wave of support started on 1 April this year and will run until 31 March 2024.

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The money is being shared out to different local authorities in England to distribute among their residents, to varying degrees.

Households across England could receive hundreds of pounds. Credit: Karol Serewis/SOPA Images/LightRocket/
Households across England could receive hundreds of pounds. Credit: Karol Serewis/SOPA Images/LightRocket/

For example, in Manchester, those who receive Housing Benefit but don't get DWP welfare payments, and who also didn't qualify for support through a Government Cost of Living payment, could receive £300 through the scheme.

The council is also giving out £250 to households of five or more people who receive Council Tax Support.

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Elsewhere, Birmingham City Council is offering grants of up to £200 to households facing financial difficulty.

How people receive their payments will depend on how they pay their council tax.

If you are eligible for the scheme and you pay through Direct Debit, you will automatically receive your payment into your bank account.

However, if for whatever reason you pay with cash or have no council tax to pay, a letter will be sent out to you with a Post Office Payout Voucher, which can be cashed at any local Post Office branch.

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Mims Davies MP, DWP Minister for Social Mobility, Youth and Progression, said: "This significant extension to the Government’s Household Support Fund is hugely welcome – as it has already helped millions of vulnerable families across England through these financially-testing times and will continue to do so over the next year.

Support is being targeted to those most in need. Credit: Getty
Support is being targeted to those most in need. Credit: Getty

"Last week, I visited one council that is using their allocation to well on a range of issues from food insecurity to tackling bed poverty.

"There, the Household Support Fund has resulted in hundreds of cots and beds being provided to vulnerable households to increase comfort and wellbeing.

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"This is just one example of the important locally led schemes providing tailored support help to those that need it most in challenging times.

"This fund is of course just one part of our extensive Cost of Living support package for families that is complementing our efforts to halve inflation – one of the Prime Minister’s top priorities - to reduce prices for us all."

For more information about the fund, click here.

Featured Image Credit: Karol Serewis/SOPA Images/LightRocket/Jim Dyson/Getty Images

Topics: UK News, Politics

Dominic Smithers
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