There is £57m unclaimed in Household Support Fund payments just a month before the scheme closes its applications, a study reveals.
Further, out of the 100 councils who replied to Creditspring’s survey, more than 20 had over £1m ready to distribute to those in need that is going unused.
The £421m pot is distributed to councils who can then provide financial support to households struggling to afford their bills and everyday essentials.
Despite the millions of pounds unclaimed by households, around a fifth of the 2,000 respondents asked by the lending specialist said they will have to rely on state benefits to get by. This rises to over a quarter (26%) for adults aged between 18 and 34 years old.
A similar number (28%) also said this was the most financially unstable they’ve ever been.
However, there have been 660,000 people who have contacted their local council and applied for the cash boost before the 30 September deadline for this round of support.
Once you contact your local council, you will need the following information to see if you are eligible:
National Insurance number
Details of anyone who lives in your house, including their National Insurance number(s)
Details of your household income (any income paid to you and any other adults who live with you, including benefit payments and income from employment)
While the deadline looms for this round of the financial boost, the Government announced this week that the support scheme, which was first launched in October 2021, would be extended to April 2025.
It followed the rise of the energy price cap by 10% for the upcoming winter months between 1 October and 31 December 2024.
So, families are looking at an average bill of £1,717 to pay for their gas and electricity usage during this period.
The exact details of the extended support scheme will be announced by the Government “in the coming weeks”.
Scheme ‘not working to full potential’
Neil Kadagathur, CEO and co-founder of Creditspring said: “The Household Support Fund provides a lifeline for thousands of families across the UK. However, given the huge sums that remain unclaimed, it’s clearly not working to its full potential and vulnerable people are missing out on vital support.
“Whilst the extension of the scheme will benefit a huge number of households, it’s hugely important that councils also reassess how they are communicating the support available to boost awareness of the fund as well as simplify the application process.”
Kadagathur added: “This will help to ensure that not only as many people are benefitting from these payments as possible, but also these vulnerable people aren’t forced to turn to predatory lenders or high-cost loans to make ends meet.”
