Local authorities will receive £1bn of funding to ensure vulnerable households are supported through the cost of living crisis, the chancellor has announced today.

In his Autumn Statement, Jeremy Hunt has extended the Household Support Fund for one year. This will provide households on means tested benefits with an extra £900 payment.

Pensioners will also receive £300 under the fund, while people on disability benefits will also receive £150.

Mr Hunt said: ‘We will also provide an additional £1bn of funding to enable a further twelve-month extension to the Household Support Fund, helping local authorities to assist those who might otherwise fall through the cracks.

'And for those households who use alternative fuels such as heating oil and LPG to heat their homes, I am today doubling the amount of support from £100 to £200, which will be delivered as soon as possible this winter.'

Mr Hunt also stuck to a previous pledge to increase working-age benefits in line with inflation. These benefits, including Universal Credit, will increase by 10.1% from next April. The household benefit cap will also be increased in line with inflation next year.

He said: 'That is an expensive commitment costing £11bn. But it means 10 million working age families will see a much-needed increase next year.

'On average, a family on Universal Credit will benefit next year by around £600.'

Mr Hunt also said the National Living Wage will see its largest ever case increase, rising from £9.50 an hour for over-23s to £10.42 from April next year.

The National Minimum Wage will also be increased from April 2023, with full-time workers seeing pay go up by £1,600 per year.