Thousands of households can claim free £200 payment to help with cost of living

The government's Household Support Fund gives local councils funding to help residents with the cost of living.

By Katie Elliott, Personal finance reporter based in London, Ruby Flanagan

Couple look worried over their finances

The Household Support Fund Scheme will be running until September (Image: Getty Images/iStockphoto)

Thousands of households grappling with the cost of living can now claim a free £200 payment, courtesy of the Government's Household Support Fund scheme. This initiative provides local councils with funds to assist residents struggling with living costs, with each council determining how best to utilise its funding.

Aid often comes in various forms, from supermarket vouchers to cash payments.

Newcastle City Council is stepping up by offering food vouchers to families with children who receive free school meals during school holidays. Additionally, it is providing hardship payments worth £200 to households facing "significant financial difficulty".

To qualify for this one-off payment, as per the council's website, you must be responsible for household bills and have a budget deficit, meaning your outgoings exceed your income.

Furthermore, residents must have sought help from the council's Advice Compact partners. If you meet these criteria, a member of the council's Advice Compact can submit a referral to the fund on your behalf, reports the Mirror.

Direct applications to the fund are not accepted. A comprehensive list of the council's advice partners can be found on its website.

However, Newcastle Council has cautioned that the funding is "limited", so not all applicants will be guaranteed a payment.

If you are not a resident of Newcastle then you will not be able to claim this help however your local council will be offering its own help through the Household Support fund. Local authorities have shared what support they are giving between April and September 2024 when the scheme will end.

To find out what this is you should go to your local council's website. Usually, they will have a separate cost of living tab which details the help on offer.

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