Millions of households are set to receive assistance through two new types of cost of living support payments in the near future. The upcoming Crisis and Resilience Fund, scheduled to commence in April 2026, will provide aid to struggling households through cash payments, rent assistance, food vouchers, and other forms of support. This fund is designed to replace the Household Support Fund, which is expected to conclude in March 2026.
Under the Crisis and Resilience Fund, two distinct payments will be accessible. The Crisis Payment, intended for individuals facing urgent crises, will allow councils to determine the specific eligibility criteria.
The latest 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 encouraged to prioritize individuals who have encountered sudden financial challenges, unexpected expenses, income reductions, or those at risk of financial instability.
The Crisis Payment schemes are advised to prioritize providing cash-based assistance, including physical cash, bank transfers, and vouchers, with an emphasis on an application-based process. In some cases, councils may opt to offer essential items like fridge-freezers and cookers instead of cash assistance. Additionally, certain councils may choose to issue food vouchers to parents of children eligible for free school meals during the summer.
Furthermore, the fund will introduce a new Housing Payment to replace the existing Discretionary Housing Payment. This payment aims to assist with rental-related costs such as rent deposits, moving expenses, and rent in advance. Eligibility for the Housing Payment requires recipients to be receiving Housing Benefit or Universal Credit with housing cost support.
Payments under these schemes may be directed to third parties such as landlords, estate agents, or appointees where necessary. The government spokesperson emphasized the commitment to addressing poverty and enhancing financial security for families through the £1 billion Crisis and Resilience fund, which aims to provide emergency financial aid through local authorities.