Households across the United Kingdom will continue receiving monthly cost of living payments throughout 2025, offering essential relief as prices for everyday goods and services remain high.
These payments are financed by the Household Support Fund (HSF), operated by the Department for Work and Pensions (DWP) and delivered by local councils.
The fund is designed to help residents struggling to afford food, energy, heating, and water bills.
Understanding the Household Support Fund
The Household Support Fund was first launched in October 2021 as an emergency response during the coronavirus pandemic.
Its primary purpose was to assist low-income families and vulnerable individuals who were facing increased financial pressure due to rising living costs.
Over time, the fund has gone through several renewal phases, with each round providing fresh resources to local authorities.
Now in its seventh funding round, the HSF has been extended to run until March 2026, ensuring that councils can continue offering targeted support to those who need it most.
Key Features of the HSF
- Funded by the DWP and distributed via local councils
- Supports residents in paying for essential living costs
- Allocated to each council, allowing flexibility in how it is delivered locally
- Current funding round active until March 2026
Birmingham’s Hardship Grant Scheme
As part of the HSF, Birmingham City Council has introduced the Hardship Grant Community Fund—a targeted support scheme aimed at providing eligible households with a £200 one-off payment. This payment is intended to help residents cover basic necessities, such as food, gas, electricity, and water.
How the Scheme Operates
- Applications can be made online or by calling 0121 634 7100
- The scheme reopened in June 2025 but was temporarily paused in July 2025 due to overwhelming demand while pending applications were processed
- It has now reopened for new applicants, giving more households a chance to receive support
The Birmingham Voluntary Service Council (BVSC) works alongside the City Council to administer the grant. Both organisations have confirmed that payments will be available until March 2026, aligning with the national HSF schedule.
Eligibility Criteria for Birmingham’s £200 Hardship Grant
To qualify for this £200 payment, applicants must meet all three eligibility conditions:
- Live within Birmingham’s city limits
- Show financial hardship, particularly when paying for essential needs such as food or energy
- Not have received a £200 Hardship Grant in the previous 12 months
All applications are carefully reviewed by the BVSC to ensure that funds are distributed fairly and reach the most vulnerable residents.
Why This Support Matters in 2025
The cost of living crisis in the UK shows no sign of disappearing quickly.
Even with inflation rates stabilising, the prices of essentials such as groceries, heating, and electricity remain significantly higher than pre-pandemic levels.
For many low-income households, unexpected expenses or changes in income—such as job loss, reduced working hours, or health issues—can make it difficult to manage monthly budgets.
The Household Support Fund offers a vital safety net, ensuring that residents can still meet their basic living needs without falling deeper into debt.
Birmingham’s Funding Commitment
In April 2025, Birmingham City Council secured cabinet approval for its share of the seventh round of HSF funding. This funding is now specifically allocated to reduce financial pressure on residents who are struggling.
The council emphasises that these grants will be used to support core essentials such as:
- Food – covering the cost of basic groceries
- Heating and electricity – helping households stay warm and keep the lights on
- Water bills – ensuring residents have access to clean water
By extending the scheme until March 2026, Birmingham aims to provide continued assistance while the wider economic situation improves.
How the Hardship Grant Fits Into the Bigger Picture
While Birmingham’s £200 grant is just one part of the HSF, the overall programme plays a nationwide role in tackling the cost of living crisis.
Each council receives an allocation and decides the most effective way to distribute it—some focus on cash payments, others offer food vouchers, utility bill credits, or direct goods and services.
The flexibility built into the HSF means that local authorities can tailor support to the specific needs of their communities, making it more impactful than a single one-size-fits-all scheme.
Application Process for Birmingham’s Hardship Grant
Residents who believe they meet the eligibility requirements can apply in one of two ways:
- Online Application – through Birmingham City Council’s official website
- Phone Application – by calling 0121 634 7100 for assistance
Applicants should prepare documents or information that show proof of residency in Birmingham, evidence of financial hardship, and confirmation that they have not received the grant in the past year.
The continuation of monthly cost of living payments under the Household Support Fund throughout 2025 offers crucial relief for households facing financial strain.
In Birmingham, the £200 Hardship Grant Community Fund stands out as a key lifeline for residents who are struggling to cover their basic living costs.
With the scheme set to run until March 2026, it provides stability during a period of ongoing economic uncertainty.
For thousands of households, this funding is not just financial assistance—it is the difference between meeting essential needs and falling short.
Frequently Asked Questions
How much is the Hardship Grant in Birmingham?
The Birmingham Hardship Grant provides a £200 one-off payment to eligible households.
How often can a household receive the grant?
You can only receive the Hardship Grant once every 12 months.
When will the Household Support Fund end?
The current funding round will run until March 2026.