Millions of households are set to benefit from two new support payments aimed at addressing the cost of living. The upcoming Crisis and Resilience Fund, launching in April 2026, will provide financial aid, rent assistance, food vouchers, and more to struggling households. This fund will replace the expiring Household Support Fund in March 2026.
Under the Crisis and Resilience Fund, two types of payments will be available. The Crisis Payment will be targeted at individuals facing immediate financial crises, with local councils having discretion over the eligibility criteria. As a result, the availability of assistance and qualification criteria may vary by location, 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. Councils are encouraged to prioritize individuals experiencing sudden financial shocks, unexpected expenses, income drops, or those at risk of financial instability.
The Crisis Payment schemes are designed to prioritize cash disbursements through methods like physical currency, bank transfers, and vouchers, with applications being the primary mode of operation. However, councils may opt to provide essential items like appliances to some recipients. Additionally, parents of children receiving free school meals may receive food vouchers during the summer months.
The fund will also offer a new Housing Payment to replace the existing Discretionary Housing Payment. This assistance will help with rental costs such as advance rent, deposits, or moving expenses, but eligibility requires recipients to be receiving Housing Benefit or Universal Credit with housing costs included.
Payments may be retroactive, and the duration of the award will be at the discretion of the council. In some cases, payments may be directed to third parties like landlords or estate agents as needed. A Government spokesperson expressed the commitment to combating poverty and enhancing financial security for families, highlighting the £1 billion Crisis and Resilience Fund as a crucial resource to prevent households from facing financial crises.