Thousands of people to be handed £400 payment in cost of living crisis

The £400 cost of living payment is being paid by Shropshire Council through its Household Support Fund Scheme

Cost of living payments worth up to £400 are being offered to thousands of struggling households.

The help is being given through the Government's Household Support Fund scheme. This scheme has given pots of cash to local councils which they then use to help those struggling in their area. Each local authority decides what help they are offering and you can only claim from your council.

Residents living in Shropshire can claim a cost of living payment of £400 from their local council. Shropshire Council was given a £2.1million grant to spend on cost of living support when the scheme was renewed in April this year. According to the criteria, those set to receive the cash will be households on low incomes who claim Council Tax support and have a dependent child.

Those who meet this criteria will be identified by Shropshire Council and will be sent a letter with instructions on how to apply for the payment. Around 3,000 households are set to get this support. A cost of living payment of £60 will also be made available to people of working age who also get Council Tax assistance.

Gwilym Butler, Shropshire Council’s Cabinet member for finance, corporate resources and communities, said: "I’m really pleased that we can continue to support those who are badly affected by the cost of living increases, thanks to the Government’s decision to extend the Household Support Fund.

“Like many other councils we face huge financial challenges, but we still want to help those who need it most. The Household Support Fund has been a vital help for many people in Shropshire. I’m impressed by how we have supported so many families and I’m grateful to our teams and partners who have delivered the grants and support to our local communities. For anyone who is finding it hard to pay for everyday expenses, please visit our cost of living help webpages for advice and support."

The Household Support Fund was initially launched in October 2021, and in the spring budget, Chancellor Jeremy Hunt extended the scheme again by another six months until September 2024, giving it an extra £500million in funding. Since its launch, it has been given around £3billion from the central Government.

Support offered through the Households Support Fund scheme usually consists of free cash payments, supermarket and energy vouchers, and extra Council Tax support. Local councils are currently announcing what help they will be offering over the coming few months. To find out what this is you should go to your local council's website.