The chancellor is understood to be considering a fifth extension of the scheme, launched in 2021 to let councils distribute small grants for essentials for people in need.
The fund was extended four times by the previous government, costing about £2bn, and is a key funder of food vouchers to help struggling parents feed children during school holidays. Details of the new extension have not been finalised.
The Financial Times reported yesterday that Reeves was likely to agree an extension beyond 30 September, partly as a way to soften the impact of the end of the winter fuel allowances for all but the poorest pensioners.
Charities have previously warned that the end of the fund would mean council-run local crisis support would disappear from nearly a third of English local authority areas covering 18 million people, including Birmingham, Bradford, Croydon, Hampshire, Nottingham, Slough, Stoke-on-Trent and Westminster.
An End Furniture Poverty analysis reported by the Guardian found 22 councils had said they would discontinue the vouchers if the fund was not renewed, with a further 20 saying they were undecided, according to freedom of information requests.
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