The UK Government has confirmed that the Household Support Fund (HSF) will continue until March 2026, with councils across England distributing targeted cost-of-living help. While there is no single nationwide £500 payment, some local authorities are offering support worth up to £500 per household, depending on need.
The funding, provided by central government and administered locally, is designed to support low-income families, pensioners and vulnerable residents facing high energy bills, food costs and housing pressures. Payments are not automatic in most cases and usually require an application through your local council.
Here is what the £500 support refers to — and who may qualify in 2026.
What Is the Household Support Fund?
The Household Support Fund was introduced in 2021 to help households in financial hardship. Instead of issuing national payments to everyone, the Government allocates funding to local councils, which then decide how to distribute it.
Support may be provided as:
- Direct cash payments
- Supermarket or food vouchers
- Energy bill assistance
- Boiler repair or heating grants
- Essential white goods (e.g., fridge or cooker replacements)
Some councils have confirmed awards worth up to £500, particularly where energy hardship or emergency costs are demonstrated.
Is There a National £500 Cost-of-Living Payment in 2026?
No. Unlike previous national Cost of Living Payments issued between 2022 and 2024, there is no UK-wide £500 payment confirmed for everyone in 2026.
Earlier schemes included automatic payments to benefit claimants, such as the £299 instalment issued as part of the wider £900 package. Those schemes were temporary emergency measures.
The Government has since shifted towards targeted local support, arguing councils can better assess individual hardship.
Why the Government Is Using Local Support
Ministers say the move towards council-administered support allows:
- More targeted help for those most in need
- Flexible responses to local pressures
- Support for households not receiving benefits but still struggling
Funding from April 2025 to March 2026 runs into hundreds of millions of pounds nationally, distributed among English local authorities.
Who Is Most Likely to Qualify?
Eligibility varies by council, but priority is typically given to households experiencing financial hardship.
You may qualify if you are:
- On a low income
- Receiving Universal Credit
- A pensioner claiming Pension Credit
- Disabled or receiving disability benefits
- A working family struggling with bills
- Facing an emergency financial crisis
Some councils accept applications from residents not on benefits, provided income thresholds are met.
How Much Can You Receive?
There is no fixed national amount.
Support may range from:
- £50–£150 in supermarket vouchers
- Energy credits or heating grants
- Emergency payments worth several hundred pounds
In some areas, households facing severe hardship have accessed support up to £500, though this is not guaranteed.
How to Apply
Unlike earlier national schemes, support is usually not automatic.
You may need to:
- Apply through your local council website
- Provide proof of income
- Submit bank statements or utility bills
- Explain your financial hardship
Payments may be made via:
- Bank transfer
- Prepaid card
- Energy account credit
- Supermarket vouchers
Search online for “Household Support Fund + your council name” to find your local scheme.
What Pensioners Should Check
Pensioners remain a key group for cost-of-living support.
If you are over State Pension age, you should check:
- Pension Credit eligibility
- Winter Fuel Payment entitlement
- Council-run hardship schemes
- Energy supplier hardship funds
Many pensioners miss out on Pension Credit, which can unlock additional support such as Housing Benefit and Council Tax Reduction.
Will National Cost of Living Payments Return?
There has been no confirmation of new nationwide payments in 2026 similar to the £900 package previously issued.
Future support is expected to focus on:
- Local council hardship funds
- Benefit uprating
- Energy-related support
- Targeted crisis grants
The Government has indicated support structures may evolve beyond March 2026, though no replacement scheme has yet been formally announced.
Warning About Scams
Whenever financial support is discussed publicly, scam activity increases.
Official schemes:
- Are accessed via GOV.UK or official council websites
- Do not charge fees
- Do not request payment to “release” funds
Be cautious of unsolicited texts, emails or social media links claiming to offer a £500 payment.
What You Should Do Now
If you are struggling financially:
- Visit your local council website
- Check GOV.UK cost-of-living pages
- Contact Citizens Advice for guidance
- Apply early, as some schemes close when funding runs out
Support is often time-limited and awarded on a first-come basis.
FAQs
Is there a £500 cost-of-living payment for everyone in 2026?
No. There is no nationwide £500 payment confirmed.
What is the Household Support Fund?
It is a government-funded scheme allowing councils to provide targeted financial help to struggling households.
Who qualifies for up to £500 support?
Eligibility depends on your council but usually includes low-income families, pensioners and vulnerable residents.
Do I need to apply?
Yes, in most cases you must apply through your local council.
Will this affect my benefits?
No. Household Support Fund payments generally do not reduce benefit entitlements.
When does the scheme end?
The current extension runs until March 2026.
Is this confirmed by the Government?
Yes. The Government has confirmed funding for the scheme through 2026.