The government has announced £500m of grants to help families struggling with the cost of living as other support schemes are withdrawn.
The move comes as rising prices, including spiralling energy bills, are making it harder for those on low incomes to make ends meet.
The end of furlough and the £20 increase to Universal Credit will also remove support provided during Covid.
The new fund will help households pay for essentials like food and bills.
Local councils in England will distribute small grants to support millions of households, the government said.
The cash will be made available in October and Scotland, Wales and Northern Ireland will receive up to £79m of the £500m.
Thérèse Coffey, Secretary of State for Work and Pensions, said: “Over the last year, we have helped millions of people provide for their families.
“Many are now back on their feet but we know that some may still need further support. Our targeted Household Support Fund is here to help those vulnerable households with essential costs as we push through the last stages of our recovery from the pandemic.”
It replaces the Covid-19 local support grant programme, which was designed to support those most in need across England with the cost of food, energy (heating, cooking, lighting), water bills (including sewerage) and other daily needs.
The new fund will run over winter and those in need of support should contact their local council, the government said.
Households struggling with the cost of food, heating, water and other essentials will be eligible for support.
Last week, Business Secretary Kwasi Kwarteng warned that many UK households could face a “very difficult winter”, with fuel prices surging and the £20-a-week uplift in universal credit ending.
Following widespread criticism from charities, opposition parties and some Conservative MPs, the government decided to offer additional support to the poorest families.
Chancellor Rishi Sunak said: “Everyone should be able to afford the essentials, and we are committed to ensuring that is the case.”
He added that the new fund would provide a “lifeline” for those at risk of struggling to keep up with their bills this winter.
The government said the fund will bolster support from the Warm Home Discount which gives a £140 rebate on energy bills each winter to more than 2.2 million low-income households and the Cold Weather Payment which provides £25 extra a week for poorer households when the temperature is consistently below zero.
Rising costs
Householders are facing a rise in energy bills as the cost of wholesale gas soars, and inflation saw a sharp increase in the year to August.
The new fund will have to compensate for a higher cost of living and the loss of other support, such as the planned cut to the £20 uplift in Universal Credit that was introduced during the coronavirus crisis.
Recent analysis by the Resolution Foundation think tank suggested that a typical low-income family with children could see their income fall by more than £20 a week over the next six months as a result.
Removing the £20-a-week uplift will be a “catastrophic cut” that could cause people’s mental health problems to spiral, the charity Mental Health UK warned on Tuesday.
Visits to its online mental health and money advice services have almost doubled in a year – from 30,760 in August 2020 to 60,214 last month.
Housing charity Shelter has also warned that more expensive bills and the reduced benefit are creating a “perfect storm” for homelessness to rise this winter.