Millions of households are set to receive assistance through two new types of support payments aimed at alleviating the cost of living. The Crisis and Resilience Fund, scheduled to launch in April 2026, will offer financial aid, rent assistance, food vouchers, and more to households in need, replacing the soon-to-end Household Support Fund.
Under the new fund, two distinct payments will be available. The Crisis Payment, designed for individuals facing crises, will be subject to eligibility criteria determined by local councils, potentially leading to variations in available support similar to the current Household Support Fund model.
Recent guidance from the Department for Work and Pensions (DWP) emphasizes that eligibility for the Crisis Payment should not be limited to benefit recipients. Councils are urged to prioritize individuals experiencing sudden financial challenges or at risk of entering a financial crisis.
Councils are advised to prioritize cash-based Crisis Payment schemes, offering options such as physical cash, bank transfers, and vouchers, with the flexibility for applicants to request vouchers if preferred. In some cases, councils may opt to provide essential items like appliances or food vouchers for families with children eligible for free school meals during the summer.
Additionally, the fund will introduce a Housing Payment to replace the existing Discretionary Housing Payment, assisting with rental-related expenses like rent deposits, moving costs, and rent in advance. Eligibility for the Housing Payment requires receipt of Housing Benefit or Universal Credit with housing cost coverage, potentially allowing for backdated payments and varying durations determined by councils.
Payments may be directed to third parties like estate agents or landlords as needed. A Government representative highlighted the fund’s commitment to addressing poverty and enhancing financial stability for families, aiming to empower local authorities with resources to provide emergency financial aid.