Millions of households are set to receive assistance through two new types of cost of living support payments in the near future. The Crisis and Resilience Fund, launching in April 2026, will provide cash payments, rent aid, food vouchers, and more to struggling households. This fund will replace the Household Support Fund, which is concluding in March 2026.
Under the Crisis and Resilience Fund, two distinct payments will be available. The Crisis Payment, designed for individuals facing crisis situations, will have flexible eligibility criteria determined by local councils. This approach may result in varying levels of assistance and qualifications, akin to the current Household Support Fund system.
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 encouraged to prioritize individuals experiencing sudden financial challenges, unexpected expenses, income drops, or those at risk of financial instability.
The Crisis Payment schemes are intended to prioritize cash disbursements, including physical currency, bank transfers, and vouchers, with applications being the primary mode of operation. Councils may offer essential items like kitchen appliances to some recipients and opt to provide food vouchers to parents of children eligible for free school meals during the summer.
Moreover, the fund will introduce a new Housing Payment, replacing the existing Discretionary Housing Payment, to aid with rental-related expenses such as deposits, moving costs, and rent in advance. To qualify for this support, individuals must be receiving Housing Benefit or Universal Credit with housing cost coverage. Eligible recipients may receive backdated payments, with the duration of the award left to the council’s discretion.
In certain cases, payments from the fund may be directed to third parties like landlords, estate agents, or appointees as deemed appropriate. A Government spokesperson highlighted the commitment to fighting poverty and enhancing financial security for families nationwide through the £1 billion Crisis and Resilience fund, aimed at preventing households from sliding into crisis by empowering local authorities to provide emergency financial aid.