The Household Support Fund will run to the end of March 2026 at the same level of funding as under the last government, the Budget announced. The End Fuel Poverty Coalition said the increase amounts to an extension of the existing scheme rather than new money, and that the sum carries no adjustment for inflation1.
The Coalition, an independent campaign body, said the Budget confirmed energy investment and highlighted a "down payment" on the Warm Homes Plan but offered no further support for households with their energy bills1. It said the Fund would be stretched further as more older people turn to it1.
"The increase to the Household Support Fund announced today is essentially an extension of the current Fund through to the end of March 2026 at the same level as under the last Government and with no adjustment for inflation."
On the Warm Homes Plan, Warm This Winter spokesperson Caroline Simpson described £3.4 billion as a welcome first instalment but "only the start of the journey"1. E3G's Ellie Mae O'Hagan said the initial £3.4 billion over three years is well short of the Labour Manifesto pledge of £13.2 billion over the Parliament, and that the door has been left open to boost investment in the Spending Review due in the Spring1. The Coalition said uncertainty remains over whether Ministers will confirm the £13.2 billion promised to help people improve their homes1.
The Budget also confirmed the means testing of the Winter Fuel Payment. Independent Age chief executive Joanna Elson said up to 970,000 eligible older people could be missing out on Pension Credit and will now lose the Winter Fuel Payment despite living on a low income1. The Coalition said the Chancellor took Winter Fuel Payments away from millions of older people with disabilities and health conditions1. National Energy Action chief executive Adam Scorer said the Budget will not lessen the impact of unaffordable energy bills and record levels of energy debt this winter, with likely increases to energy bills later in January1.
Polling cited by the Coalition found 75% of the public say there should be financial help for older and disabled people to pay their energy bills, and that energy firms have made £457 billion in profits since the start of the energy crisis1. Independent Age polling found 87% of people aged 65 and over think the UK Government does not understand the issues facing older people1. The Coalition said what was needed in the short term was a restoration of winter fuel payments, an expansion of warm home discounts and reforms to improve and extend cold weather payments1.
Why it matters for households
The Household Support Fund is a route to crisis help for households that cannot cover essentials, including energy costs, and is administered by local authorities. Extending it at a flat cash level means the same pot must cover the same period, and the Coalition's point is that inflation and rising demand from older households reduce what each award can buy1. For a household already in energy debt or needing a crisis grant, the practical position is that the scheme continues rather than expands.
The Winter Fuel Payment change runs alongside this. Households that lose the payment but do not receive Pension Credit have no automatic replacement in the Budget, and the Coalition and Independent Age both point to Pension Credit take-up as the gap1. Households in England can check support for low-income households, and there are separate arrangements for Northern Ireland. Households with a disability or medical condition that increases energy needs have their own routes to support, set out in help for vulnerable and medically dependent households.
The Warm Homes Plan money is capital for home improvement rather than bill support, so it does not change what a household pays this winter. The Coalition's position is that insulation and home improvements are the route to permanently lower bills, and that the £3.4 billion is a first step against a £13.2 billion pledge1.
What happens next
The Spending Review is due in the Spring, which E3G said leaves the door open to boost Warm Homes Plan investment1. Energy bills are expected to rise again in January, according to National Energy Action1. No date has been reported for when the extended Household Support Fund will open to applications through individual councils.