Millions of households are set to receive support through two new types of cost of living assistance. The upcoming Crisis and Resilience Fund, scheduled to launch in April 2026, will provide aid to struggling households through cash payments, rent relief, food vouchers, and more. This initiative will take over from the current Household Support Fund, which is concluding in March 2026.
Under the Crisis and Resilience Fund, two payment options will be available. The Crisis Payment will target individuals facing immediate crises, with local councils granted flexibility in determining eligibility criteria. This approach may lead to variations in available support based on location, similar to the existing Household Support Fund structure.
Recent guidance from the Department for Work and Pensions (DWP) emphasizes that eligibility for the Crisis Payment should not be restricted to benefit recipients. Instead, councils are advised to prioritize individuals experiencing sudden financial hardships or income reductions, aiming to prevent financial crises.
Crisis Payment schemes are intended to prioritize cash-based assistance, including physical currency, bank transfers, and vouchers, primarily on an application-based system. Councils are encouraged to offer voucher alternatives if preferred by recipients. In some cases, councils may opt to provide essential items like appliances to those in need. Additionally, some councils may 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 current Discretionary Housing Payment. This assistance will help cover rental-related expenses such as advance rent, deposits, or relocation costs. Eligibility for the Housing Payment requires receiving Housing Benefit or Universal Credit with housing support towards rental payments. Payments may be retroactive, and the duration of support will be determined by the council.
Payments under these schemes may also be directed to third parties like landlords or estate agents as needed. The government aims to address poverty and enhance financial security for families across the UK through the £1 billion Crisis and Resilience fund, providing local authorities with the resources to offer emergency financial aid.
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