Millions of households are set to benefit from two new types of cost-of-living support payments. The Crisis and Resilience Fund, launching in April 2026, will offer cash assistance, rent support, food vouchers, and more to struggling households, replacing the expiring Household Support Fund. Under this fund, two payment options will be available, including the Crisis Payment, targeting individuals facing crisis situations with flexible eligibility criteria determined by local councils. This approach may lead to variations in available assistance based on location, similar to the current Household Support Fund system.
Recent guidance from the Department for Work and Pensions (DWP) emphasizes that eligibility for the Crisis Payment should extend beyond benefit recipients to include individuals experiencing sudden financial shocks or those at risk of financial instability. The fund will prioritize those with unexpected expenses or income reductions.
Councils are advised to offer Crisis Payments in various forms, including cash, bank transfers, and vouchers, with a focus on individual applications. In some cases, essential items like kitchen appliances may be provided instead of cash assistance. Moreover, parents of children eligible for free school meals could receive food vouchers during the summer. Additionally, the fund will introduce a new Housing Payment to assist with rental-related costs like deposits and moving expenses, replacing the current Discretionary Housing Payment scheme.
To qualify for the Housing Payment, individuals must be receiving Housing Benefit or Universal Credit with housing costs included. Eligible recipients may receive retroactive payments, with the duration of support determined by the council. Payments may be directed to third parties like landlords or estate agents as needed.
According to a Government spokesperson, the £1 billion Crisis and Resilience fund aims to prevent households from facing financial crises, providing local authorities with the necessary resources to offer emergency financial aid.