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.
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