Millions of households are set to benefit from two new forms of cost of living support payments in the near future. The upcoming Crisis and Resilience Fund, scheduled to launch in April 2026, will provide assistance to struggling households through cash payments, rent aid, food vouchers, and more. This fund is designed to replace the expiring Household Support Fund by March 2026.
Under the new Crisis and Resilience Fund, there will be two distinct payment options available. The Crisis Payment will be extended to individuals facing crisis situations, with councils having the authority to determine the specific eligibility criteria. This decentralized approach may lead to variations in available assistance based on location, similar to the structure of the current Household Support Fund.
Recent guidance from the Department for Work and Pensions (DWP) emphasizes that eligibility for the fund should not be limited to benefit recipients. Councils are urged to prioritize individuals who have encountered unexpected expenses, sudden income drops, or are at risk of financial instability.
Crisis Payment schemes are recommended to prioritize cash-based assistance, including physical currency, bank transfers, and vouchers, with an application-based process. In some cases, councils may opt to provide essential items like appliances 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. This payment is aimed at assisting with rental-related costs such as initial rent payments, deposits, and moving expenses. Eligibility requires recipients to be receiving Housing Benefit or Universal Credit with housing support.
Payments from the fund may be directed to third parties like landlords or estate agents where appropriate. A government spokesperson highlighted the commitment to addressing poverty and enhancing financial security for families through the £1 billion Crisis and Resilience fund, which aims to provide timely emergency financial assistance and stability to local authorities.
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