The leaders of eight major English councils, including Liverpool, Manchester, and Birmingham, as part of the Core Cities group, have written to the Prime Minister and Chancellor, urging them to extend funding provided to local authorities by the Household Support Fund. The letter highlights concerns about the impact of ending the funding on thousands of vulnerable people and calls on the government to confirm an extension of the HSF before the Spring Budget, arguing that not extending it beyond March will be catastrophic for many people in the poorest communities.
The letter emphasizes the success of the fund in alleviating poverty and hardship and providing emergency assistance, serving as an example of what can be achieved through government, councils, and voluntary sector collaboration. The fund has helped people with food, fuel, and emergency costs, enabling targeted support to some of the most vulnerable residents, including women fleeing domestic violence, and has paid for 40,000 children to receive free school meals in Manchester. The leaders estimated that removing the fund would only exacerbate the issue of inequality in Manchester, where over 60,000 people have a disposable income of less than £124 a month.
The letter also stated that the Core Cities received more than £96m from HSF in 2023-24. Ending the HSF funding would impact poorer households’ immediate risk of food and fuel poverty, and the city councils under severe financial strain due to cost and demand pressures would not be able to replicate the fund from their own budgets. The leaders called on the government to provide clarity by confirming an extension of the fund before the Spring Budget and to discuss some of the longer-term policy proposals necessary to achieve inclusive economic growth across the Core Cities.
The letter emphasizes that cities are the engines of the economy and could generate an extra £100bn annually for the UK with the right freedoms and powers but to reach their potential, ensuring access for everyone to local economic growth is essential. The Core Cities said that continuing to extend temporary fundings would not tackle deep-rooted inequalities in income and opportunity, and longer-term solutions are necessary to support the communities, particularly young people
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