Blackburn with Darwen Council leader Cllr Phil Riley has written to Chancellor Jeremy Hunt asking for him to continue a special grant to support hard-up families and individuals.
He has asked for the government to extend the Household Support Fund (HSF) in the coming 2024/25 financial year.
Since 2021 it has allowed the authority to provide millions of pounds in grants to more than 4,000 households struggling with the current cost of living, including food and bills.
The HSF is due to end on March 31. Recipients include includes families with children, pensioners, unpaid carers, care leavers and people with disabilities.
The grants could include help with energy, water, broadband and phone bills, as well as other essentials such as food, clothing and hygiene products.
Other areas of help include boiler inspection and energy efficiency (if you are a homeowner), reduction of utility bills, white goods and children’s beds, support to reduce your outgoings and to increase your income and help to stay healthy and well.
Cllr Riley's letter means Blackburn with Darwen Council is joining organisations including The Children’s Society, Trussell Trust, Barnardo’s, the Local Government Association, and other councils across the country, urging the government to extend the HSF beyond March 31.
It has also offered support through schools, to carers via The Carers Service and for older people through Age UK.
Cllr Riley said: "Continuing this funding is vital for our residents who are most vulnerable and have the lowest incomes.
"I am especially worried about the impact of not extending it will have on our borough’s children.
"A core mission of this council is to make sure every child has the opportunities to fulfil their potential.
"But without this funding continuing, I have grave concerns there will be a major gap in support which could severely affect Blackburn with Darwen children’s health, wellbeing and life chances.”
Cllr Julie Gunn, Blackburn with Darwen Council's children's services boss, said: "In the borough the HSF has helped families at a time of financial crisis after years of austerity and the news that it might end is very worrying.
"In failing to extend the HSF, the government seems to think that the cost of living crisis is over but we know the need for this help will not end when the HSF ends in April.”
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