Millions of households are set to benefit from two new types of support payments aimed at addressing the rising cost of living. The Crisis and Resilience Fund, scheduled to launch in April 2026, will offer assistance to struggling households through cash payments, rent aid, food vouchers, and more. This fund will replace the soon-to-end Household Support Fund.
Under the Crisis and Resilience Fund, two distinct payments will be available. The Crisis Payment, designated for individuals facing crises, will have eligibility criteria determined by local councils. This approach may lead to varying levels of assistance and eligibility, similar to the current Household Support Fund system.
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 unexpected financial setbacks or those at risk of financial hardship.
The Crisis Payment schemes are intended to prioritize cash assistance, including physical cash, bank transfers, and vouchers, with applications being the primary mode of operation. Additionally, councils may opt to provide essential items like appliances to those in need or offer food vouchers to parents of children eligible for free school meals during the summer.
Furthermore, the fund will introduce a Housing Payment to replace the existing Discretionary Housing Payment, aimed at aiding with rental costs such as advance rent payments, deposits, and moving expenses. Eligibility for the Housing Payment requires recipients to be receiving Housing Benefit or Universal Credit with housing costs coverage toward rent obligations. Payments may be retroactive, and the duration of the assistance will be determined by the council.
Payments from the fund may be directed to third parties like landlords, estate agents, or appointees as necessary. A Government spokesperson highlighted the commitment to addressing poverty and enhancing financial security for families across the UK through the £1 billion Crisis and Resilience fund, aimed at providing emergency financial support to prevent households from falling into crisis.
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