Struggling families in the North East are facing a “cliff edge” if critical support funding to help with food and energy bills is allowed to run out, councils fear.

The Household Support Fund (HSF), awarded to local authorities to distribute to vulnerable residents grappling with escalating costs, is due to expire at the end of September.

The scheme was previously extended four times under the Tory government and Sir Keir Starmer’s Labour administration is now being urged to do so again, or risk a “vital safety net” being lost just as the winter months hit.

A survey of councils by the Local Government Association (LGA) found that 84% expect demand for welfare assistance to increase over the winter, while nearly 60% said they would not be able to provide any additional funding if the HSF came to an end in September.

In Newcastle, the fund has been used to offer meal vouchers during school holidays and hardship payments for people in serious financial difficulty.

Labour councillor Paul Frew, the city council’s cabinet member for finance, said: “The HSF is an important piece of our cost of living support. In Newcastle we have been very clear that the HSF needs to continue, we asked the previous Tory government to fund the HSF for the full year, but they did not. Our ask of government remains the same.”

Glen Sanderson, the Conservative leader of Northumberland County Council, said the loss of the HSF would “impact on people who most need our help”.

He added: “The implications of some of these decisions will be very serious on councils when we are already very hard-pressed for money.

“At the September cabinet meeting of the North East Combined Authority, I have asked for a report on the implications of some of the decisions of the new Government.

"I am concerned that the scrapping of the winter fuel allowance will put much more of a call on Northumberland Communities Together, our warm hubs and our family hubs.

“Also on housing, and the consultation to build 222% more homes in Northumberland – this won’t just have an impact on housing but will put more pressure on our doctors, dentists, roads and most importantly, our school places. I hope this paper will look at some of these things.”

The LGA reported that more than three-quarters of councils believe that a successor scheme should replace HSF from March 2025.

Pete Marland, chair of the LGA’s Economy and Resources Board, said: “The Household Support Fund is a vital safety net for vulnerable residents struggling with the cost of living, which councils are using to target help to those most in need, but is currently due to run out in a matter of weeks. As our survey shows, services including grants for energy and food, supplying essential furniture and white goods, paying for energy efficiency improvements, funding food banks, offering food vouchers for children during school holidays and employment and financial advice are all at risk of being lost and irreplaceable.

“We are approaching another cliff-edge before the current fund runs out and we urge the Government to urgently extend this for at least another six months, to help support those most affected through the winter when energy bills in particular are expected to be higher.

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“Ultimately, councils want to see a shift away from short-term, crisis support so they can instead invest in preventative services which improve people’s financial resilience and life chances. Crucially this must be underpinned by a sufficiently-resourced national welfare system.” 

A Government spokesperson said: “This Government will tackle the scar of poverty by making sure work pays and improving support to help people into good work.

“More details on the Household Support Fund will be set out in due course.”