THOUSANDS of households can cash in on a free £125 payment to help with the cost of living.
The cash support comes through the government’s Household Support Fund.
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The scheme works by handing councils up and down the country a slice of funding available to dish out to Brits in need.
Each local authority gets a different portion of funding depending on the size of the catchment area, population, and number of vulnerable households.
The voucher or grant amounts vary by location, so you must check to see what you can get and how your council will pay you.
For example, thousands of residents in Reading are in line to receive £125 vouchers in the coming weeks.
Households containing children eligible for free school meals are eligible.
Care levers will also be receiving a voucher payment of £125.
For most care leavers this voucher will be sent to them by the Post Office, with some others being provided directly by the Leaving Care Team.
Vouchers will be sent in July and December 2025 and will need to be cashed by the end of September 2025, and January 2026.
If you’re not eligible for the automatic support above, you can still make an application for a £100 cash grant directly into your bank account.
The discretionary application-based element of HSF is focused on supporting Reading residents on low incomes and those who are struggling to meet the rising cost of living.
Households in receipt of means-tested benefits or other related state benefits (such as a PIP) are automatically assumed to have a low income.
For residents who aren’t receiving any income-based or other state benefits but have specific circumstances that have negatively impacted their overall cost of living (such as unexpected or increased expenditures), a high-level income, expenditure, and savings assessment will be conducted within the application.
Applicants with savings above £2000 will not be eligible for a discretionary payment.
Support will be prioritised to households who fall into one or more of the following categories:
- Residents above state pension age
- Carers
- People with disabilities
- People living alone
- Residents with unsecure employment
- Large households
- People with energy-inefficient homes
- Households with prepayment energy meters
- Residents in private rented accommodation
- Victims of crime
- Veterans
To apply for the discretionary support visit reading.gov.uk/benefits-and-financial-support/household-support-fund.
Household Support Fund explained
Sun Savers Editor Lana Clements explains what you need to know about the Household Support Fund.
If you’re battling to afford energy and water bills, food or other essential items and services, the Household Support Fund can act as a vital lifeline.
The financial support is a little-known way for struggling families to get extra help with the cost of living.
Every council in England has been given a share of £421million cash by the government to distribute to local low income households.
Each local authority chooses how to pass on the support. Some offer vouchers whereas others give direct cash payments.
In many instances, the value of support is worth hundreds of pounds to individual families.
Just as the support varies between councils, so does the criteria for qualifying.
Many councils offer the help to households on selected benefits or they may base help on the level of household income.
The key is to get in touch with your local authority to see exactly what support is on offer.
And don’t delay, the scheme has been extended until April 2025 but your council may dish out their share of the Household Support Fund before this date.
Once the cash is gone, you may find they cannot provide any extra help so it’s crucial you apply as soon as possible.
What if I don’t live in Reading?
The £742million Household Support Fund has been allocated to councils across England to help residents facing financial hardship.
You do not need to live in Reading to apply.
If you’re on a low income, receiving benefits, or struggling to afford essentials, you may be eligible for support.
The type of help available varies by area and may include cash payments, food vouchers, or help with energy bills.
Applications are handled by local councils. Some have already opened their schemes, while others are expected to launch soon.
Residents are advised to check their local council’s website or social media for updates.
Many councils have dedicated Household Support Fund pages with details on how to apply.
In some cases, councils may contact eligible households directly by post.
What other help is available?
If you’re not eligible for the Household Support Fund, there are still other ways to get financial support.
First, check if you’re missing out on benefits.
Every year, billions of pounds in benefits go unclaimed – and you could be entitled to more than you think.
There are free online tools that can help you find out what you’re owed:
- Policy in Practice – Better Off Calculator
- Entitledto Benefits Calculator
- Turn2us Benefits Calculator
If energy bills are piling up, you might qualify for a grant to help clear your arrears.
Both British Gas and Octopus Energy offer financial assistance to customers in difficulty, with some schemes wiping as much as £2,000 off unpaid energy debts — depending on your situation.
It’s worth checking directly with your supplier or visiting their website for eligibility details.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
