Vulnerable households will be able to access a new £500m support fund to help them with essentials over winter.

The new Household Support Fund will support millions of households in England and will be distributed by councils in England, through small grants to meet daily needs such as food, clothing, and utilities.

The Barnett formula will apply in the usual way to additional funding in England. The devolved administrations will therefore receive up to £79m of the £500m.

Thérèse Coffey, Secretary of State for Work and Pensions, said: “Over the last year, we have helped millions of people provide for their families. Many are now back on their feet but we know that some may still need further support. Our targeted Household Support Fund is here to help those vulnerable households with essential costs as we push through the last stages of our recovery from the pandemic.”

Chancellor of the Exchequer, Rishi Sunak said: “Everyone should be able to afford the essentials, and we are committed to ensuring that is the case.

“Our new Household Support Fund will provide a lifeline for those at risk of struggling to keep up with their bills over the winter, adding to the support the government is already providing to help people with the cost of living.”

This fund bolsters support from the Warm Home Discount which provides a £140 rebate on energy bills each winter to over 2.2 million low-income households and the Cold Weather Payment which provides £25 extra a week for poorer households when the temperature is consistently below zero.

As the Barnett formula will apply in the usual way to additional funding in England, the devolved administrations will receive up to £79m of the £500m (£41m for the Scottish Government, £25m for the Welsh Government and £14m for the NI Executive). It will be for the devolved administrations to decide how to allocate this additional funding.