THOUSANDS of households will see a £200 free cash payment land in their accounts this month to help pay for essential bills.
The help is being dished out under a new round of £421million funding given by the government to the Household Support Fund (HSF).
The scheme was first established in 2021, with and extended for a second time in last year's March budget and for a third time in November.
Each council gets a different portion of funding depending on the size of the catchment area, population, and need, and money will be dished out to residents in need.
The grants on offer vary by location so what you can get and how your council will pay you won't be the same.
You'll usually need to be on a low income to receive the help.
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For example, Redcar & Cleveland Council is offering between £50 to £200 to struggling residents.
Those eligible for the help are residents who receive council tax support. You'll get:
- £50 if you have no children
- £100 if you have a child
- Up to £200 if you are on a low income and are in a credit deficit – where your outgoings are more than your income
You'll need to claim for the help – it's not automatic.
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You'll get the cash deposited into your account on March 25.
What are councils offering and who is eligible?
Check directly with your council if you could get help.
Support on offer varies.
For example, residents eligible for the scheme who live in Middlesborough could get between £50 and £100.
Ashford Borough Council is using its share of the fund to make bank transfers to eligible households worth £200.
Residents in North Yorkshire should have started receiving letters in the post from last month about free £325 supermarket vouchers.
Meanwhile, Guildford Borough Council sent out letters to households in line for payments worth up to £400 before Christmas.
How do I apply for the Household Support Fund?
Some households will be notified that they can apply for the cash help and others will receive the cash automatically.
Again, your council will set out whether or not you need to apply for the free cash.
Find your local council using the gov.uk's online tool and ask your authority for more information.
What other support is available?
As part of the Autumn Statement, it was revealed millions on benefits and Universal Credit will receive an extra one-off £900.
Eight million households currently get cost-of-living payments worth up to £650.
Pensioners have started getting a £300 one-off payment.
The current pensioner cost of living payment is being handed out to millions on a low income.
You qualify under the current rules if you normally get the winter fuel payment, but this could change under the new rules.
The £300 cost of living payment is paid on top of the other winter support.
You'll need to be:
- born on or before 25 September 1956
- have lived in the UK for at least one day during the week of 19 to 25 September 2022 in what is known as the "qualifying week"
Struggling families are eligible for the Warm House Discount to help them tackle the cost of living.
The scheme is where eligible households can get £150 off their electricity bill each winter – but you'll have to wait until the colder months to get the money off.
Households in England and Wales don't need to apply to get the cash and they'll automatically qualify if they are receiving certain benefits.
You can read more about who's eligible here.
There are also plenty of energy grants and schemes open to help you out if you're struggling:
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- British Gas Energy Trust Individuals and Family Fund
- British Gas Energy Trust
- EDF Customer Support Fund
- E.ON and E.ON Next Grants
- Octopus Energy Assist Fund
- OVO Energy
- Scottish Power Hardship Fund
There's also a one-off fuel voucher from your energy supplier if you're on a prepayment meter.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
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