UK households can get £200 payment for cost of living if they fit three criteria

Households struggling to afford essentials can get a £200 payment to help with food, gas, electricity and other expenses if they meet certain criteria. While the DWP is no longer giving out its own direct cost of living payments to those on means-tested and disability benefits, it has added another £421 million to its Household Support Fund.

The fund is shared among local authorities in England to spend as they see fit, and many are making their own cost of living payments to low-income households in their area. In Birmingham, the city council is offering £200 hardship grants.

The Household Support Fund was established under the previous government and was extended by Labour to continue for six more months, from October 1, 2024, to March 31, 2025. Birmingham City Council has delegated the distribution of its funding to the Birmingham Voluntary Service Council (BVSC), which reopened for enquiries on November 25.

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BVSC says applications are being accepted up to the end of next March - or until all funding has been exhausted if this is sooner. It says there are three main conditions for eligibility to the cash support:

• You must be a Birmingham resident
• You must be able to demonstrate that your household is experiencing financial hardship, and in particular covering food and energy costs - you will be asked to provide proof of any means-tested benefits you receive
• Your household must not have received a £200 grant payment in the last 12 months

Households first need to express interest in receiving support with an enquiries form on the BVSC webpage aimed at determining eligibility. Applicants will be contacted via email on the outcome of their enquiry and next steps.

In all, the fund is providing an extra £49 million to 14 local authorities in the West Midlands. The cash will help the 600,000 households living in poverty in the region with the cost of energy, water and food bills, as well as supporting community groups and projects to help struggling families.

The DWP says around 500,000 children and 200,000 pensioners are living in relative poverty after housing costs in the West Midlands.

Work and Pensions Secretary Liz Kendall said: "Despite all the problems we have inherited, this Government has invested an extra half a billion pounds in the Household Support Fund, so we can families and the poorest pensioners who need it most this winter.

"This £49 million boost will support families who need it in the West Midlands with the costs of feeding children, heating homes, or helping people get to work. This comes alongside our work to fix the foundations of our country, grow the economy and deliver opportunities for people to get work and get on in work, so everyone feels better off."

The new funding comes alongside wider Government plans to tackle the root causes of poverty through the Child Poverty Strategy and boost employment support through the Get Britain Working White Paper.

The DWP says households in need of financial support can apply for help from the fund through their local authority, with each council being responsible for distributing cash based on residents' needs. It can also be allocated to charities and third-sector partners to provide a range of services and products such as baby boxes, heating appliances and school uniforms. Check the website of your own local council to see what support they are offering.

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