Millions of households are set to benefit from two new types of support payments aimed at addressing the cost of living. Starting in April 2026, the Crisis and Resilience Fund will be introduced to provide assistance to struggling households through cash aid, rent support, food vouchers, and more. This fund will replace the current Household Support Fund, which is scheduled to end in March 2026.
Under the Crisis and Resilience Fund, there will be two distinct payment options available. The Crisis Payment will be disbursed to individuals facing urgent financial challenges, with local councils having the authority to determine the specific eligibility criteria.
The Department for Work and Pensions (DWP) has issued new guidelines emphasizing that eligibility for the fund should not be restricted to benefit recipients. Instead, councils are encouraged to prioritize individuals who have encountered unexpected expenses, income reductions, or are at risk of financial instability.
The Crisis Payment schemes are designed to prioritize cash-based assistance, including cash disbursements, bank transfers, and vouchers, with applications being the primary mode of operation. However, councils may opt to provide essential items like appliances to certain recipients or offer food vouchers to parents of children eligible for free school meals during the summer.
Additionally, the fund will introduce a new Housing Payment to replace the existing Discretionary Housing Payment. This new payment will assist with rental-related costs such as advance rent, deposits, and moving expenses. Eligibility for the Housing Payment requires recipients to be receiving Housing Benefit or Universal Credit that covers housing costs. Payments may be retroactive, and the duration of the award will be determined by the council.
Furthermore, the fund may authorize payments to third parties such as landlords, estate agents, or appointees as necessary. A government spokesperson highlighted the government’s commitment to addressing poverty and enhancing financial security for families through the £1 billion Crisis and Resilience fund, aimed at providing local authorities with the resources to offer emergency financial assistance.
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