Vulnerable households face a support “cliff edge” when dedicated funding expires next month, councils have warned.

The Household Support Grant, which is provided to those struggling with basic costs for food, bills and other essentials, is set to end in September ahead of an expected spike in demand over the winter.

A survey of councils by the Local Government Association (LGA) found 84% of authorities are braced for a significant increase in demand for support in the coming months, but many will not be able to plug the shortfall.

An overwhelming majority of councils (94%) said the fund should continue, while nearly 60% confirmed they would not be able to provide additional funding for welfare assistance if the grant came to an end.

Only 1% of councils said they would be able to match the funding when it expires, while just over two-thirds (67%) reported that local welfare funding, which is administered by councils, would decrease if the fund was withdrawn.

Three-quarters of councils said the Housing Support Fund should be replaced with a successor scheme in March 2025.

In the longer term, most councils said funding settlements should be provided on a multi-year basis, with a focus on “crisis prevention and reducing dependency”.

Many councils also called for greater flexibility to decide how the funding is spent.

The LGA said the fund plays an “essential role” in providing support and tackling disadvantage as people continue to feel the impact of the rise in living costs in recent years.

It added that councils are “deeply concerned” that the fund is ending as winter approaches, at a time when “many residents are most at risk of falling through the gaps into hardship and placing increased pressure on already overstretched public services, such as health and social care”.

Calling on the Government to extend the fund, the LGA said this would not only provide security for people struggling to buy day-to-day essentials, but also enable councils to plan ahead and retain staff and voluntary partners to deliver vital support.

Pete Marland, chairman of the LGA’s Economy and Resources Board, said: “The Household Support Fund is a vital safety net for vulnerable residents struggling with the cost of living, which councils are using to target help to those most in need, but is currently due to run out in a matter of weeks.

“As our survey shows, services including grants for energy and food, supplying essential furniture and white goods, paying for energy efficiency improvements, funding food banks, offering food vouchers for children during school holidays and employment and financial advice are all at risk of being lost and irreplaceable.

“We are approaching another cliff edge before the current fund runs out and we urge the Government to urgently extend this for at least another six months, to help support those most affected through the winter when energy bills in particular are expected to be higher.

“Ultimately, councils want to see a shift away from short-term, crisis support so they can instead invest in preventative services which improve people’s financial resilience and life chances. Crucially this must be underpinned by a sufficiently resourced national welfare system.”

Simon Francis, coordinator of the End Fuel Poverty Coalition, described the Household Support Fund as “one of the last lines of defence against poverty”.

He added: “We have publicly commended the Government in taking some of the long term measures to tackle high energy bills, such as the drive for more renewable energy and a Warm Homes Plan. But these solutions will take time to bring down bills.

“In the meantime, households of all ages will need more support from the Government to stay warm this winter, not less.

“As well as extending the Household Support Fund, we urge the Chancellor to rapidly consult with consumer groups to reverse planned changes to Winter Fuel Payments, to introduce support to end energy debt and expand the Warm Homes Discount.”

A Government spokesperson said: “This Government will tackle the scar of poverty by making sure work pays and improving support to help people into good work.

“More details on the Household Support Fund will be set out in due course.”