Millions of households are set to receive support from two new types of cost of living assistance in the near future. The upcoming Crisis and Resilience Fund, scheduled for launch in April 2026, aims to provide aid to struggling households through cash payments, rent assistance, food vouchers, and more. This fund will replace the expiring Household Support Fund by March 2026.
Under the Crisis and Resilience Fund, there will be two distinct payments available. The Crisis Payment will target individuals facing crisis situations, with councils having the discretion to determine eligibility criteria. This approach may lead to variations in available assistance based on location, resembling the current Household Support Fund structure.
Recent guidance from the Department for Work and Pensions (DWP) emphasizes that the Crisis Payment should not be restricted to benefit recipients only. Councils are urged to prioritize individuals experiencing sudden financial setbacks, unexpected expenses, or those at risk of financial crises.
The Crisis Payment schemes will prioritize cash-based assistance, including physical cash, bank transfers, and vouchers, with an application-based process. In some cases, councils may opt to provide essential items like fridge-freezers and cookers instead of cash. Additionally, certain councils may choose to offer 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 designed to assist with rental-related costs such as rent advances, deposits, and moving expenses. Eligibility for the Housing Payment requires receipt of Housing Benefit or Universal Credit with housing cost coverage. Payments may be retroactive, and the duration of support will be determined by the council.
Payments under these schemes may be directed to third parties such as estate agents, appointees, and landlords when necessary. A government spokesperson highlighted the government’s commitment to addressing poverty and providing security and opportunities for families through the £1 billion Crisis and Resilience fund, aiming to prevent households from facing financial crises and offering emergency financial support through local authorities.