Millions of households will soon have access to two new forms of financial assistance to address the rising cost of living. Starting in April 2026, the Crisis and Resilience Fund will be introduced to provide support to struggling households through cash aid, rent assistance, food vouchers, and more. This fund is set to replace the expiring Household Support Fund by March 2026.
Under the Crisis and Resilience Fund, there will be two main payment options. The Crisis Payment will be distributed to individuals facing urgent financial crises, with local councils having the discretion to determine eligibility criteria, leading to potential variations in available assistance similar to the current Household Support Fund.
Recent guidance from the Department for Work and Pensions emphasizes that eligibility for these payments should not be limited to benefit recipients. Councils are encouraged to prioritize individuals who have encountered sudden financial setbacks, unexpected expenses, or are at risk of financial hardship.
The Crisis Payment schemes are designed to prioritize cash-based assistance, including physical currency, bank transfers, and vouchers, with applications being the primary mode of operation. However, councils may opt to provide essential items like fridge-freezers and cookers in certain cases. Additionally, some councils may choose to issue food vouchers to parents of children eligible for free school meals during the summer months.
Moreover, the fund will introduce a new Housing Payment to replace the existing Discretionary Housing Payment. This payment aims to assist with rental-related expenses such as rent deposits, moving costs, and advance rent payments. Eligibility for the Housing Payment is contingent upon receiving Housing Benefit or Universal Credit with housing cost components.
The government’s spokesperson highlighted the commitment to addressing poverty and enhancing financial security for families across the UK through the £1 billion Crisis and Resilience Fund. This initiative aims to provide local authorities with the necessary resources to offer emergency financial support, thereby preventing households from plunging into crisis situations.
