Millions of households are set to receive assistance through two new types of cost of living support payments. The upcoming Crisis and Resilience Fund, scheduled to launch in April 2026, will offer aid to struggling households in the form of cash payments, rent assistance, food vouchers, and more. This fund will replace the current Household Support Fund, which is scheduled to conclude in March 2026.
Under the Crisis and Resilience Fund, there will be two distinct payment options available. The Crisis Payment will be disbursed to individuals facing crisis situations, with councils granted discretion to determine the specific eligibility criteria. This setup may lead to varying levels of support based on location, akin to the current Household Support Fund.
Recent 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 advised to prioritize individuals who have encountered unexpected expenses, loss of income, or are at risk of financial hardship.
The Crisis Payment schemes are expected to prioritize cash-based assistance, including physical currency, bank transfers, and vouchers, primarily through an application process. However, councils may opt to provide essential items like appliances to those in need. Additionally, some councils may offer 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, aimed at assisting with rental-related costs such as advance rent payments, deposits, and relocation expenses. Eligibility for the Housing Payment requires receipt of Housing Benefit or Universal Credit with housing cost coverage. Backdated payments may be available, with the duration of the award determined by the council.
Payments under these schemes may be directed to third parties like estate agents, appointees, and landlords where applicable. A Government spokesperson highlighted the commitment to addressing poverty and providing security and opportunities for families through the £1 billion Crisis and Resilience Fund, which aims to prevent households from facing financial crises by empowering local authorities to offer emergency financial support.