Thousands of households to get £50 payment to help with cost of living

Thousands of households to get £50 payment to help with cost of living Newspoint | 28/02/2025 22:39:15

Thousands of low-income households could be set to get payments worth £50 over the coming few months.

The extra support will be given to struggling households living within Chelsea and Kensington in . According to the plans, 13,000 residents are set to get free school meals vouchers outside of term time and 15,000 could get a one-off £50 support payment to help with household bills, food, clothing and travel costs.

The plans come as Chelsea and Kensington their upcoming 2025-26 budget. The final budget will be put forward to council approval next month on March 5, 2025. This support is different from other local authority support as it will not be coming from the government's Households support Fund scheme. Instead it will come from their own council coffers.

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Cllr Elizabeth Campbell, Leader of Kensington and Chelsea Council, said: "The rising cost of living is putting pressure on hard working families in the borough, and we are determined to help those residents who need it the most. I’m proud that we offered eligible pensioners in social housing with a £200 payment to help heat their homes, following changes to the winter fuel payment nationally. We are looking at a £750,000 commitment to help residents on low-incomes with the cost-of-living.”

Last month, Chelsea and Kensington authority said it would increase bills by 4% from April – a point lower than the 5% hike that most other London boroughs are expected to make. The 4% increase – 2% for general council services and 2% for adult social care – is likely to be one of the lowest rises in the country.

Kensington and Chelsea will also retain its council tax reduction scheme to help low-income residents with council tax bills. About 13,000 residents qualify for discounts. Council leader Elizabeth Campbell said: “Years of sensible management and focusing on what residents want means we can keep council tax low again – with the lowest proposed increase in London.

“Like other councils we have substantial budget pressures, with a £40 million gap over the next four years, but we will look at every option before raising taxes. Next year we will save £16 million, mainly through innovation and back office efficiency.

“We’re spending too, investing half a billion over three years in public spaces, building new homes, renovating our estates and keeping our streets clean.

We know the cost-of-living still bites for some and we have set financial support for those who need it the most.”

If you are struggling, you should reach out to your local council as they have cost of living support available. Currently, councils are providing help through the Household Support Fund scheme, which was first introduced by the former Tory government. The scheme gives local councils pots of cash, which they then use to provide support to those struggling with the cost of living. The help that's available depends on your local council, as they decide what support they would like to use their funding for.

Council help includes free cash payments, , vouchers, and discounts. The Household Support Fund is due to end on March 31, 2025, after the Labour government extended it last year with an extra £421million in funding.

Under the rules of the scheme, every council needs to spend the entirety of their funding before the March deadline. If they don't, the money needs to be returned back to the government.

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