Millions of households are set to receive support from two new types of cost of living assistance. The upcoming Crisis and Resilience Fund, launching in April 2026, will provide aid to struggling households through cash payments, rent assistance, food vouchers, and more, replacing the current Household Support Fund by March 2026.
The Crisis and Resilience Fund will introduce two payment options. The Crisis Payment will cater to individuals facing immediate hardships, with councils having the flexibility to determine eligibility criteria, potentially leading to regional variations similar to the existing Household Support Fund.
Recent guidance from the Department for Work and Pensions (DWP) emphasizes that eligibility should not be restricted to benefit recipients. Councils are advised to prioritize individuals experiencing sudden financial setbacks, unexpected expenses, or those at risk of financial crisis.
Crisis Payment schemes are expected to prioritize cash-based assistance, including physical cash, bank transfers, and vouchers, with applications being the primary mode of operation. However, councils may opt to provide essential items like appliances in certain situations. Additionally, some councils may opt to offer food vouchers to parents of children eligible for free school meals during the summer.
Furthermore, the fund will introduce a Housing Payment to replace the Discretionary Housing Payment, aiming to assist with renting-related expenses such as advance rent, deposits, and relocation costs. Eligibility requires individuals to receive Housing Benefit or Universal Credit with housing cost coverage. Payments may be retroactive, and the duration of the award will be at the discretion of the council.
Government officials stated that the £1 billion Crisis and Resilience Fund is part of efforts to combat poverty and enhance financial security for families nationwide. The fund aims to empower local authorities to provide emergency financial aid and prevent households from plunging into crisis.