Millions of households are set to receive support through two new types of cost-of-living assistance. The Crisis and Resilience Fund, launching in April 2026, will offer cash aid, rent assistance, food vouchers, and more to struggling households, replacing the expiring Household Support Fund.
Under the new fund, there will be two distinct payments available. The Crisis Payment will be disbursed to individuals facing crisis situations, with councils having discretion over eligibility criteria, potentially leading to variations in available assistance similar to the existing Household Support Fund.
Recent guidelines from the Department for Work and Pensions emphasize that the Crisis Payment should not be limited to benefit recipients only. Councils are encouraged to prioritize individuals experiencing sudden financial challenges, unexpected expenses, income reductions, or those at risk of financial instability.
The Crisis Payment schemes are designed to prioritize cash disbursements, including physical currency, bank transfers, and vouchers, with applications being the primary mode of operation. In certain cases, councils may opt to provide essential items like fridge-freezers or cookers instead of cash. Additionally, some councils might 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 aims to assist with rental-related expenses such as rent deposits, moving costs, or rent in advance. To qualify for this support, individuals must be receiving Housing Benefit or Universal Credit with housing costs covered.
Payments under the new scheme may be retroactive, and the duration of the award will be at the discretion of the council. In certain cases, payments may be directed to third parties such as landlords, estate agents, or appointees as deemed appropriate.
According to a Government spokesperson, the £1 billion Crisis and Resilience Fund is part of the commitment to combat poverty and provide financial security to families in the UK. This multi-year fund aims to prevent households from facing financial crises by empowering local authorities to offer emergency financial aid.