Millions of households are set to benefit from upcoming cost of living support payments with the introduction of the Crisis and Resilience Fund in April 2026. This fund will provide cash assistance, rent aid, food vouchers, and more to struggling households, replacing the expiring Household Support Fund.
Under the Crisis and Resilience Fund, two types of payments will be available. The Crisis Payment will be disbursed to individuals facing crisis situations, with councils having discretion over the specific eligibility criteria. Similar to the current Household Support Fund, this may lead to variations in available assistance based on location and eligibility.
Recent guidance from the Department for Work and Pensions (DWP) emphasizes that the Crisis Payment should not be restricted to benefit recipients only. Councils are encouraged to prioritize individuals experiencing sudden financial challenges or at risk of a financial crisis.
The Crisis Payment schemes are designed to prioritize cash assistance through methods like physical cash, bank transfers, and vouchers, with an application-based process. In some cases, councils may opt to provide essential items like appliances to those in need. Additionally, parents of children eligible for free school meals might receive food vouchers over the summer.
Furthermore, a new Housing Payment will be introduced under the fund to replace the existing Discretionary Housing Payment. This payment aims to assist with rental-related costs such as rent deposits, moving expenses, and rent in advance. Eligibility for the Housing Payment requires recipients to be receiving Housing Benefit or Universal Credit with housing cost coverage. Backdated payments and the duration of the award will be determined by the council.
Payments under these schemes may be directed to third parties like landlords, estate agents, or appointees where necessary. The Government’s spokesperson highlighted the commitment to addressing poverty and providing financial security through the £1 billion Crisis and Resilience fund, enabling local authorities to offer emergency financial support to prevent households from falling into crisis.