The Department for Work and Pensions (DWP) has set out comprehensive plans for a major new support scheme aimed at helping millions of households facing financial hardship. The Crisis and Resilience Fund, announced to replace the existing Household Support Fund, is backed by a £1 billion annual commitment from the government for at least three years.
What is the New Crisis and Resilience Fund?
Scheduled to launch in April 2026, the fund will be administered by local authorities across the UK. It is designed to provide a more stable, long-term source of emergency aid, moving away from the previous yearly confirmation process. The fund's core objective is to prevent low-income households from falling into crisis when they struggle to afford essentials.
This intervention comes against a stark backdrop. Recent research by the Trussell Trust found that 14 million adults in the UK are going without food because they cannot afford it, highlighting the severe pressure on household budgets from persistently high bills.
Two New Types of Financial Support
In guidance issued to councils, the DWP confirmed the fund will introduce two distinct payments, each with different purposes and eligibility rules.
The Crisis Payment
This payment is intended for individuals facing a sudden financial shock or those at imminent risk of crisis. Crucially, eligibility will not be limited solely to people already claiming benefits, giving councils discretion to support a wider group.
The DWP states the payment should address needs arising from situations like:
- Going without food, shelter, or heating.
- Necessary household items like furniture or appliances.
- Emergencies caused by disasters, health issues, theft, or leaving an abusive relationship.
- A temporary gap in regular income.
Authorities are asked to adopt a 'cash-first' approach, providing direct monetary support unless there is a compelling reason to offer vouchers or goods instead. The crisis payment is meant for short-term, occasional need and is not a regular income supplement. Some councils may also use part of this funding to provide summer food vouchers to families whose children receive free school meals.
Barnardo's chief executive Lynn Perry welcomed the guidance, stating it "has the potential to make a meaningful difference to children growing up in poverty" by protecting dignity and offering real choice.
The Housing Payment
A separate housing payment will also be launched, taking over from the discretionary housing payment. This support is specifically aimed at helping with housing costs and, unlike the crisis payment, will be restricted to those receiving either Housing Benefit or Universal Credit that includes a housing element for rent.
It can cover expenses such as:
- Rent in advance or a rental deposit.
- A shortfall in rent payments.
- Lump sums associated with moving homes.
This payment can be structured as a longer-term, more regular form of support. For example, someone seeking work and facing a persistent rent shortfall could receive ongoing payments until their income improves. The DWP notes that those in need but not qualifying for the housing payment may be considered for a crisis payment instead.
Local Government Response and Future Impact
While the Local Government Association has welcomed the multi-year funding commitment, it has expressed concerns about whether the allocated sum will meet escalating local demands. A survey cited in October found that while 63% of councils believed the fund would help to some extent, only 2% felt it would do so to a great extent.
A Government spokesperson said: "We're committed to tackling poverty and delivering more security and opportunity for families across the UK. The £1bn multi-year Crisis and Resilience fund will help prevent households from falling into crisis by giving local authorities the certainty they need to provide emergency financial support."
The success of the scheme will ultimately depend on its implementation by local authorities from April 2026, as they tailor the national framework to address the specific and urgent needs within their communities.
