Millions of households are set to benefit from two new forms of cost of living assistance soon. The upcoming Crisis and Resilience Fund, scheduled to launch in April 2026, will provide support to struggling households through cash payments, rent aid, food vouchers, and more, replacing the expiring Household Support Fund.
Under the Crisis and Resilience Fund, two distinct payments will be available. The Crisis Payment will be disbursed to individuals facing crisis situations, with local councils having discretion over the specific eligibility criteria, leading to potential variations in available assistance similar to the current Household Support Fund.
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 urged to prioritize individuals experiencing sudden financial setbacks or at risk of a financial crisis due to unforeseen expenses or income drops.
The Crisis Payment schemes are designed to prioritize cash disbursements, including physical currency, bank transfers, and vouchers, based on applications. However, councils may opt to provide essential items like household appliances in some cases or offer food vouchers to parents of children eligible for free school meals during the summer.
Additionally, the fund will introduce a new Housing Payment to replace the existing Discretionary Housing Payment, aimed at assisting with various rental-related costs such as rental deposits, advance rent, and moving expenses. Eligibility for the Housing Payment requires receiving Housing Benefit or Universal Credit with housing cost coverage towards rent obligations. Payments may be retroactive, and the duration of support will be determined by the council.
Payments under these schemes may be directed to third parties such as landlords, estate agents, or appointees as necessary. The government spokesperson expressed a commitment to combating poverty and enhancing financial security for families nationwide through the £1 billion Crisis and Resilience fund, aiming to prevent households from falling into crisis by empowering local authorities to offer emergency financial aid.