Millions of households are set to receive assistance through two new types of cost of living support payments. The Crisis and Resilience Fund, launching in April 2026, will provide cash aid, rent assistance, food vouchers, and more to struggling households, replacing the expiring Household Support Fund.
Under this new fund, two payment options will be available. The Crisis Payment will cater to individuals facing crises, with councils having the flexibility to determine specific eligibility criteria. This approach may lead to variations in available support based on location, similar to the current Household Support Fund structure.
Recent guidance from the Department for Work and Pensions (DWP) emphasizes that eligibility should not be restricted to benefit recipients. Councils are urged to prioritize individuals experiencing sudden financial strains, unexpected expenses, income drops, or those at risk of financial crises.
Crisis Payment schemes are advised to prioritize cash disbursements, including physical cash, bank transfers, and vouchers, with applications being the primary mode of operation. Councils should also offer the option for voucher requests. In some cases, councils may choose to provide essential items like fridge-freezers and cookers instead of cash. Additionally, parents of children eligible for free school meals might receive food vouchers during the summer.
Furthermore, the fund will introduce a new Housing Payment to replace the current Discretionary Housing Payment, assisting with rental-related costs such as rent deposits, advance payments, and moving expenses. Eligibility for the Housing Payment requires receiving Housing Benefit or Universal Credit with housing expenses coverage. Payments may be retroactive, and the duration of awards will be at the council’s discretion.
Payments may be directed to third parties like estate agents, appointees, and landlords where applicable. A government representative affirmed the commitment to combating poverty and enhancing security and opportunities for families through the £1 billion Crisis and Resilience fund, providing local authorities with resources to deliver emergency financial aid.