Millions of households are set to benefit from the upcoming launch of two new support payments aimed at easing the cost of living.
Scheduled to start in April 2026, the Crisis and Resilience Fund will provide assistance to struggling households through cash payments, rent aid, food vouchers, and more. This initiative will replace the expiring Household Support Fund in March 2026.
Under the Crisis and Resilience Fund, there will be two distinct payments available. The Crisis Payment will be disbursed to individuals facing crisis situations, with local councils having discretion over the specific eligibility criteria.
This approach may lead to variations in available assistance and qualifications, akin to the current Household Support Fund model. Recent guidance from the Department for Work and Pensions emphasizes that eligibility should not be restricted to benefit recipients. Local authorities are encouraged to prioritize individuals experiencing sudden financial challenges or at risk of entering a financial crisis.
The Crisis Payment schemes are designed to prioritize cash-based assistance, including physical currency, bank transfers, and vouchers, with applications being the primary method of operation. Councils will also offer the option for individuals to request vouchers if preferred.
In some cases, councils may opt to provide essential items such as refrigerators and cookers instead of cash assistance. Additionally, certain councils might choose to issue food vouchers to parents of children eligible for free school meals during the summer.
Furthermore, the fund will introduce a new Housing Payment to replace the existing Discretionary Housing Payment. This payment is intended to help cover rental-related expenses like advance rent, deposits, and moving costs.
To qualify for the Housing Payment, individuals must be receiving Housing Benefit or Universal Credit with housing costs contributing to rental obligations. Eligible recipients may receive backdated payments, with the duration of the award being at the discretion of the council.
Payments may also be directed to third parties like estate agents, appointees, and landlords as necessary.
A government representative stated, “We are dedicated to addressing poverty and enhancing stability and opportunities for families nationwide. The £1 billion Crisis and Resilience fund will provide crucial support to prevent households from facing crises by empowering local authorities to offer emergency financial assistance.”