Millions of households are set to benefit from two new types of cost-of-living support payments. The upcoming Crisis and Resilience Fund, launching in April 2026, will offer assistance to struggling households through cash payments, rent support, food vouchers, and more. This fund will replace the soon-to-end Household Support Fund.
Under the Crisis and Resilience Fund, there will be two distinct payments available. The Crisis Payment, intended for individuals facing crisis situations, will have eligibility criteria determined by local councils, potentially leading to varying support availability based on location, akin to the current Household Support Fund model.
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 encouraged to prioritize those experiencing sudden financial strains, unexpected expenses, income drops, or facing financial instability.
Crisis Payment schemes are designed to prioritize cash-based assistance, including cash, bank transfers, and vouchers, with applications being the primary mode of operation. However, councils may opt to provide essential items like fridge-freezers and cookers in certain cases. Additionally, some councils might offer food vouchers to parents of children eligible for free school meals during the summer.
The fund will also introduce a new Housing Payment, replacing the existing Discretionary Housing Payment, to aid with rental-related expenses such as rent deposits, moving costs, or rent in advance. Eligibility for the Housing Payment requires receiving Housing Benefit or Universal Credit with housing cost coverage. Councils will determine the duration and potential backdating of payments.
Payments under these schemes may be directed to third parties, such as landlords or estate agents, where applicable. A Government spokesperson highlighted the commitment to addressing poverty and enhancing financial security for families, with the £1 billion multi-year Crisis and Resilience Fund aimed at preventing households from slipping into crisis situations by providing emergency financial assistance through local authorities.