UK Chancellor Rachel Reeves has announced the extension of the Household Support Fund in her Budget. The local councils will process the cost of living payment to the eligible households and disburse the payment. Under this fund, the Birmingham Council has also announced the £200 cost of living.
People facing difficulties with basic essentials, such as energy and water bills, food, and others can claim cost of living payments and cover their expenses. If you wish to claim this grant can find the full details here to learn how you can receive the payment and when you can expect the payment.
£200 Cost of Living Payment
After the UK Chancellor Rachel Reeves announced the Household Support Fund in her first Labour Budget on 30 October 2024. Based on the Labour government announcement, the fund is expected to extend till April 2025. The local council will run this fund and decide the eligibility, payment, application process, etc.
The local authorities have started the application, and people living in the UK struggling with their basic essential expenses this winter can apply through their local council. The Household Support Fund, cost of living payment depends on the council where you reside.
The Birmingham Council has announced the £200 cost of living payment under the Household Support Fund. The council invites applications from 25 November to 31 March 2025 from eligible residents. Just like Birmingham Council other local councils will also announce the Household Support Fund accounting to their Council demographic.
Cost of Living Payment Eligibility Criteria
As we have mentioned earlier, the local council will decide the eligibility criteria for their Councils depending on the needs of people and demographics. For instance, you can check the eligibility requirements announced by the Birmingham Council below:
- You must be a legal resident of Birmingham,
- You need to prove the financial hardship you are going with to receive the payment particularly related to the food and energy bills.
- For a year, you have not received the £200 payment from the UK government or local council.
Remember, the eligibility depends on where you reside, so you could contact your local council to inquire about the Household Support Fund as the UK government will send the fund to the local council for distribution to the citizens.
But one thing is common in all councils, the residents have to prove their financial hardships with enough proof, such as pay slips, pending bills, etc. rather than certain eligibility.
Why should you apply early for the £200 Cost of Living Payment?
The fund is assigned to the local council, which is limited, hence there is a possibility that the fund may run out before the application ends. It is possible for a Council with a larger population. The Household Support Fund is limited, so once it ends, the program will also end for the residents regardless of what is the end date of the program.
Hence, the Council suggested people apply early to receive the payment to their bank account during this winter month. So, if you are struggling or think you will need assistance in the winter month due to your financial hardship or your savings are running, you should apply immediately.
How to apply for the £200 Cost of Living Payment?
The UK people struggling with monthly living costs can apply for the cost of living payment at their local council’s official website when the consul opens the application. With your application, you must present enough proof that showcases your financial hardships.
The application for the cost of living payment under the Household Support Fund will open till 31 March 2025, Households are encouraged to ask their local council about the Household Support Fund and apply as per their Council decided application method.
You can find your local council website by entering your postcode at the Government website and finding your local council service at https://www.gov.uk/find-local-council. For instance, Birmingham residents can visit the Council’s official website and apply for the cost of living payment as the application window is open from 25 November 2024.
When will you receive the £200 Cost of Living Payment?
In the case of the Birmingham council, the UK government will send the fund to the City Council which will be distributed by the local organizations or Birmingham Voluntary Service Council. So, the administration and organizations will ensure only the people who really need the fund will receive the fund.
The local council will review your claim on the cost of living payment and your financial hardships. The payment will be sent to your bank account based on the 12-month period, so if you received the payment in January 2024, you may receive the fund after a year, so in January 2025.
The last time the UK government presented the cost of living payment to the eligible claimants was in February 2024 when the application was invited between November and December 2023. So, the eligible people can expect their cost of living payment up to £200 or more in February 2024.
Some councils may send the payment in the form of cash or some may send the payment via shopping voucher, it’s all up to them. The recipients should know this payment will be tax-free, so you don’t have to report it with the taxes.
The Household Support Fund is essential for many UK citizens, especially for the elderly who were cut off from the Winter fuel payment. The cost of living payment will support the people in managing their basic expenses and fighting inflation. So, if you are struggling with your basic living cost, inquire about the Cost of living payment under the Household Support Fund at your local council office.