North Yorkshire Council
Report to the Chief Finance Officer in consultation with Councillor Heather Phillips, Executive Member for Corporate Services
22 May 2025
Household Support Fund (1 April 2025 – 31 March 2026)
1.0 Purpose of the Briefing note
1.1 To set out, and seek approval for, the deployment of a seventh Household Support Fund (HSF) allocation (1 April 2025 to 31 March 2026) in order to provide crisis support to those most in need, with the cost of essentials over the next 12 months.
2.0 Background
2.1 £742m has been made available to County Councils and Unitary Authorities in England to support those most in need with the cost of essentials via the HSF. HSF should be used to meet immediate need, and support those who are struggling to afford household essentials including energy and water bills, food and wider essentials. Funding can also be used to support households with housing costs where existing housing support does not meet this need, and to supplement support with signposting and advice.
2.2 Funding allocations are provided under section 31 of the Local Government Act 2003. This scheme will be delivered over 12 months, between 1 April 2025 and 31 March 2026.
2.3 North Yorkshire Council will receive an allocation of £6,234,826.70. As this is the seventh round of Household Support Fund, it is being treated as a recurring grant of over £200,000 in line with the Grant Application and Acceptance Procedure and the requirements of the Finance Procedure Rules. As this is an allocation which is drawn down in arrears, there has been no application process and subsequently no grant application form has been submitted. Therefore, an acceptance of this allocation is being sought.
2.4 In guidance received from DWP, the local authority has flexibility to determine eligibility in their area and to channel support through a variety of routes, for example through vouchers or cash, direct provision or via third party suppliers. At least part of the scheme must be operated on an application basis.
2.5 Although this is considered an extension to the HSF scheme, it is a new grant subject to its own conditions. Support should be extended to a wide range of low-income households in need, including families with children of all ages, pensioners, unpaid cares, care leavers and disabled people, larger families, single person households and those struggling with one-off financial shocks or unforeseen events.
3.0 Types of support and eligible spend
There are two categories of eligible spend for this iteration of the HSF, under which Authorities can offer a wide range of support. These categories are crisis support and preventative support.
3.1 Crisis Support
Authorities are expected to offer support to vulnerable households most in need with the cost of essentials through HSF. Under crisis support, HSF covers such that will meet an immediate need and should in the first instance be used to support vulnerable households in the most need with the cost of essentials.
There is no prescriptive list which provides a comprehensive definition of eligible spend under crisis support, but may include spend on:-
· Energy and water. This may include support with energy bills for any form of fuel that is used for the purpose of domestic heating, cooking, or lighting, including oil or portable gas cylinders. It can also be used to support water bills including for drinking, washing, cooking, as well as for sanitary purposes and sewerage.
· Food. HSF can be used to provide support with food, whether in kind or through vouchers or cash.
· Essentials linked to energy and water. The Fund can be used to provide support with essentials linked to energy, water and food (for example insulation or energy efficient items which reduce bills, the purchase of equipment such as fridges, freezers, ovens, slow cookers or costs associated with obtaining these essentials such as delivery and installation). Authorities are encouraged to consider supporting households on low incomes to repair or replace white goods and appliances with more energy efficient ones, or to invest in simple energy efficiency measures which will pay back quickly.
· Wider essentials. HSF can be used to support wider essential needs not linked to energy, water or food should Authorities consider this appropriate in their area. These may include, but are not limited to, support with other bills including broadband or phone bills, clothing, period and hygiene products, essential transport-related costs such as repairing a car, buying a bicycle, or paying for fuel. This list is not exhaustive. It can also include one-off payments to prevent a crisis.
- Housing costs. HSF can be used to provide support with housing costs to those in need. However, where eligible, ongoing housing support for rent must be provided through the Housing cost element of Universal Credit (UC) and Housing Benefit (HB) rather than HSF. In addition, eligibility for Discretionary Housing Payments (DHPs) must first be considered before housing support is offered through HSF. The Authority must also first consider whether the claimant is at statutory risk of homelessness and therefore owed a duty of support through the Homelessness Prevention Grant (HPG).
- Households in receipt of HB, UC, or DHPs can still receive housing cost support through HSF if it is deemed necessary by their Authority. However, it should not be used to provide housing support on an ongoing basis or to support unsustainable tenancies.
- HSF cannot be used to provide mortgage support, though homeowners could still qualify for the other elements of HSF (such as energy, food, water, essentials linked to energy and water and wider essentials).
3.2 Preventative Support
Authorities are encouraged to deliver some level of preventative support through HSF, with the aim of preventing poverty locally and building local resilience. There is no prescriptive list which provides a comprehensive definition of eligible spend under preventative support, but may include: -
· Advice services. HSF may be used to provide supplementary advice services to award recipients, including debt, benefit and/or employment advice, where Authorities consider this appropriate and where it complements the objectives and practical delivery of HSF.
· Join-up between service providers. The Fund could be used to facilitate join up between different support systems and their providers, including shared spaces where different services could be delivered (such as at community kitchens, there could be representatives from advice services who may offer those in need further support, such as checking benefit entitlement or offering financial advice)
· Any support with the aim of providing longer-term and sustainable solutions – this could include for example provision of cooking lessons with an emphasis on cost effective methods.
3.3 Local authorities are required to develop a ‘local delivery framework’ to enable them to distribute grant funding that best supports households most in need. This must be underpinned by a clear rationale or documented policy / framework outlining their approach including how they are defining eligibility and how households access the scheme. Local authorities have the ability to deliver the scheme through a variety of routes including provision of vouchers to households, making direct provision of food, or issuing grants to third parties. Authorities must operate an inclusive and accessible application-based service for emergency support as part of their HSF scheme.
3.4 Where a local authority chooses to use third party organisations, this should be done on an objectively fair, transparent and non-discriminatory basis, having regard to the time available to deliver the scheme.
3.5 The scheme requires local authorities to use a wide range of data and sources of information including engagement with third party organisations, to identify and provide support to a broad cross section of vulnerable households in their area. In doing so, local authorities should particularly consider how they can prevent escalation of problems in order to support those vulnerable households.
3.7 Local authorities can proactively identify households who may benefit and must also operate an application process for emergency support as part of the scheme. There is no requirement for a means test or to conduct a benefit check unless this forms part of the local eligibility criteria. However, in relation to housing costs, local authorities must establish whether other forms of support are available to the household, such as DHPs.
3.8 The local authority will report and manage spend in relation to the conditions set out above. Information will, however, be requested from DWP on which groups have benefitted from grants, administrative costs and payment assurance, alongside reporting delivery plan progress. Management information provided to DWP must be copied to the Section 151 officer to provide assurance on validation of funding spend.
3.9 The Delivery Plan detailing the proposed deployment of HSF in North Yorkshire, which is to be submitted to DWP by 30 May 2025, must be endorsed and signed off by the Section 151 Officer and Executive Member for Corporate Services.
4.0 Local Eligibility Framework and Approach
4.1 The North Yorkshire eligibility framework and approach is intended to recognise the current cost of living pressures, particularly on essential goods and services. Whilst the proposed framework acknowledges these pressures, it is not the intention to replicate any other scheme.
4.2 Evaluation of the previous six phases has been built into the development of the phase 7 approach.
4.3 The proposed North Yorkshire eligibility framework and approach offers different ways of providing support to households who may be in need. The aim is to provide targeted support that is delivered both effectively and efficiently, taking account of varying personal circumstances. The proposed framework and approach has been developed in consultation with the NYC Welfare and Benefits service, and drawing upon the experience and insight gained from the delivery of the previous phases of HSF.
4.3.1 Direct Award - Proactive identification of households using eligibility criteria
Based on data modelling, approximately 27700 households who are in receipt of 75% to 100% means tested council tax reduction (CTR). There will be an eligibility cut-off date in September 2025 (to be confirmed) through which identified eligible households will receive a single voucher. The voucher value will be subject to confirmation but is anticipated to be between £180 and £190; this is due to ensuring workloads are up to date at the eligibility cut-off date and therefore accurate households are not yet available. Eligible households will be contacted directly by post to advise them how to claim their voucher.
Given the focus in the DWP guidance on allowing for exceptional circumstances, it is proposed to implement an application process to complement the direct awards element of the scheme whilst it is live in autumn 2025. This will be exclusively for:
Exceptional circumstances which led to individuals not being included as being in receipt of 75% to 100% CTR in September 2025 (date to be confirmed), for example relocating at the time of the data cut and therefore temporarily falling out of the CTR scheme, delays to processing their CTR claim which were outside of the household’s control etc. A proposed single voucher award anticipated to be between £180 and £190 (voucher value subject to final confirmation).
It is proposed at this stage, that the application and voucher award process for the exceptional circumstances elements will be hosted by Family Fund Business Services (FFBS) via a dedicated portal set up on the Flexigrant system to ensure cases are accurately managed and monitored in line with DWP guidelines. As part of this process, applications will be reviewed and assessed by the Welfare and Benefits service utilising a robust eligibility criterion, ensuring that comprehensive evidence is provided by the household to validate the exceptional circumstances they have outlined. The decision of the Council will be final with no appeals process.
It is proposed that a total of c£5.20 million is allocated entirely to the direct awards element of the scheme; vouchers will be distributed in October 2025, with the detailed timetable to be agreed by the Assistant Director for Customer, Revenues and Benefits.
It is proposed that the vouchers will be supermarket vouchers, redeemable at a number of national supermarket chains, with the recipient being able to choose the national supermarket chain. Arrangements will be in place (including through libraries and customer service access points) to ensure households who need additional help to access or utilise vouchers are able to do so.
4.3.2 Food Banks – In the previous phases of Household Support Fund, up to 27 voluntary sector food bank operators and other food projects were supported per phase, to ensure increased capacity was available in the free or low cost food supply infrastructure across the county. This includes preventative measures that link heavily with NYC policy work around financial inclusion and food insecurity. In addition to the provision of free or low-cost food applications that provide wraparound signposting, advice, and guidance, with cash awards available to deliver food related educational activity or training will be looked upon favourably. It is proposed to award up to £300K to this element of the scheme.
4.3.3 Energy Support in previous rounds has been administered by North Yorkshire Citizens Advice and Law Centre through the HSF Energy Support contract; this had a particular focus on the delivery of a fuel voucher scheme to households in greatest need, including those who use oil or solid fuel for heating. It is proposed that a grant of £400K including reasonable staffing costs is made available to launch and deliver this fund over the period of the scheme.
4.3.4 North Yorkshire Local Assistance fund (NYLAF) is the North Yorkshire Council managed scheme that provides support for vulnerable people including emergency food vouchers and utility top-ups. NYLAF continues to experience increased demand from households who are struggling to buy food, pay essential utility bills or meet other essential living costs. It is proposed to allocate a total of £230K to NYLAF to help meet the increased demand.
4.3.5 Care Leavers Energy costs are an area of concern for young people who move out of care and into their own accommodation. Support will be given towards energy costs to prevent care leavers getting into debt, with money being credited to energy accounts and other items purchased to help reduce costs and avoid mould in flats, such as heated airers, air fryers, hot water bottle. It is proposed to allocate £10K to the NYC Care Leavers team to support this cohort.
4.4 As part of the scheme delivery the council will continue to promote the governments uptake of Pension Credit for pensioners not in receipt of means tested benefit. The promotion of Pension Credit will be delivered through various channels which include NYC’s annual Cost of Living campaign, and distribution of relevant supporting information through libraries, leisure centres, customer contact centres and voluntary sector partners. North Yorkshire residents of pensioner age on the lowest incomes will make up over 43% of all eligible residents of the direct award payment.
4.5 Funding allocations will continue to be monitored throughout the grant period; with any residual funding across the support streams to be re-allocated as required to meet demand. It is proposed that should this be required, this decision can be undertaken by the Assistant Director for Customer, Revenues and Benefits in liaison with the Executive Member for Corporate Services.
5.0 Financial Implications
5.1 The Household Support Fund is funded by a Section 31 grant from the Department for Work and Pensions and ring-fenced to be spent in line with the terms and conditions set out in the Grant Determination. Grant payments will be made in arrears on receipt of fully completed, compliant and verified MI return.
5.2 As with any welfare payment to vulnerable recipients, there is a risk of fraud. Risk management implications are discussed in Section 9.0 of this report.
5.3 The total grant allocation for North Yorkshire is £6,234,826.70 and covers the period from 1 April 2025 to 31 March 2026. All funds should be spent or committed by 31 March 2026, with no carry forward for future usage permitted. It is however acceptable for vouchers that have been purchased and delivered to households before the end of HSF to be spent shortly thereafter; this should however be minimal.
5.4 Based on financial modelling, indicative allocations are:
|
Part |
Description |
Total |
|
(a) |
Payments based on eligibility criteria |
£5,230,000 |
|
(b) |
Food Bank Operators |
£300,000 |
|
(c) |
Energy Support |
£400,000 |
|
(d) |
NYLAF |
£230,000 |
|
(e) |
Care Leavers |
£10,000 |
|
(f) |
Management (including postage & comms) |
£64,826.70 |
|
TOTAL |
|
£6,234,826.70 |
5.5 Although not expected, any overspend incurred will be the responsibility of the Council. In the first six rounds of HSF, there has been an underspend on the direct award element of the scheme, resulting in the reallocation of funds to the broader HSF support strands to ensure full defrayal within the grant period.
5.6 A light-touch evaluation of the scheme will be undertaken in March 2026 to support the submission of the final MI return to DWP.
6.0 Legal Implications
6.1 The Household Support Fund round 7 is considered to be compliant with the Subsidy Control Act 2022.
6.2 The Council’s Procurement and Contract Procedure Rules, and Public Contracts Regulations 2015, where applicable, shall be complied with in the expenditure of the grant monies.
7.0 Equalities Implications
7.1 The Department for Work and Pensions has undertaken an Equality Impact Assessment on the national scheme. For the local implementation of the scheme in North Yorkshire, as identified in the attached Equality Impact Assessment (attached at Appendix A), there is not an adverse impact on any protected characteristics.
7.2 In this phase, it is mandatory for Authorities to make their plans on how to deliver the scheme public, including any application-based support available. North Yorkshire Council will continue to have a dedicated webpage for the fund and consider inclusive and accessible ways to advertise the scheme through a dedicated communications plan.
8.0 Environmental Implications
8.1 There are no significant environmental implications arising from this report (see attached Initial Climate Change Impact Assessment Form attached at Appendix B).
9.0 Risk Management Implications
9.1 The Household Support Fund is not a direct replacement for other policy decisions taken by national government and/or the local authority. There are a number of known and acknowledged pressures facing households. Whilst a significant proportion of the funding will be allocated based on eligibility criteria/data held by the local authority, it is anticipated that there will be demand for additional applications for support either from (i) households in receipt of the direct award where further support is requested, or (ii) from households who are facing pressures that are not identified by the eligibility criteria/data.
9.2 Given the profile and visibility of this fund, there is a tight turnaround for the local authority to deliver the scheme with high levels of public expectation.
9.3 Measures will be used to minimise the chance of fraudulent and multiple applications; there are two verification steps within the direct award processing phase to ensure that monies are not distributed to ineligible households as well as other challenges, such as multiple requests per households. In conjunction with Veritau, Officers from across the Council will convene a weekly HSF Fraud Investigation Panel whilst the direct award element of the scheme is live to review and examine any potential fraud cases. Fraud cases have been minimal in previous rounds of HSF.
10.0 Recommendation
10.1 To request approval from the Chief Finance Officer in consultation with the Executive Member for Finance and Executive Member for Corporate Services to authorise the acceptance of grant funding, totalling £6,234,826.70 for Household Support Fund Phase 7.
10.2 It is recommended that Executive Member for Corporate Services agrees the proposed local eligibility framework and approach for the seventh phase of Household Support Fund as set out above, which will inform the Delivery Plan submitted to DWP on 30 May 2025
10.3 It is recommended that any subsequent residual funding decisions are undertaken by the Assistant Director for Customer, Revenues and Benefits in liaison with the Executive Member for Corporate Services.
Report Authors
Margaret Wallace - Assistant Director Customer, Revenues and Benefits
Marcus Lee – Head of Welfare & Benefits
Appendix A – Equality Impact Assessment Form
Appendix B - Initial Climate Change Impact Assessment Form