The Department for Work and Pensions (DWP) has unveiled a major new support scheme designed to provide a financial lifeline to struggling families across the UK. The Crisis and Resilience Fund, a £1 billion multi-year initiative, is scheduled to launch in April 2026.
What is the New Crisis and Resilience Fund?
This new fund will directly replace the existing Household Support Fund, which is set to conclude in March 2026. The Household Support Fund was first introduced in October 2021 to help families cope with soaring living costs. The successor scheme aims to build on this by offering more structured, long-term support administered through local authorities.
The core objective is to prevent households from falling into severe financial difficulty. The fund will empower local councils to deliver emergency support, which can include direct cash payments, food vouchers, help with rent, and other essential aid.
Two Key Types of Support Available
The new system will feature two distinct strands of support, giving councils flexibility to tailor help to local needs.
1. The Crisis Payment
This payment is targeted at individuals and families facing a sudden, unexpected financial shock. This could be due to an emergency expense or a sharp drop in income. Crucially, eligibility will not be restricted solely to those currently receiving benefits. Guidance advises councils that support should be broader.
Councils are instructed that Crisis Payments should be "cash-first". This means assistance will primarily be provided as physical cash, bank transfers, or vouchers, with applicants having the choice of a voucher if preferred. The scheme will largely operate on an application basis.
In some cases, where deemed more appropriate, councils may provide essential household items like reconditioned fridge-freezers or cookers. Furthermore, some authorities may opt to issue food vouchers during the summer holidays to parents of children eligible for free school meals.
2. The New Housing Payment
This element will take the place of the current Discretionary Housing Payment. It is designed to assist with costs linked to renting, such as rent in advance, rental deposits, or moving costs.
To qualify for the Housing Payment, applicants must already be in receipt of either Housing Benefit or the housing costs element of Universal Credit. Councils will have the discretion to backdate payments and decide on the duration of an award. Payments may be made directly to the applicant or to third parties like landlords or estate agents.
Government Commitment and Future Impact
A Government spokesperson emphasised the long-term strategy behind the fund, stating: "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 announcement provides clarity on the future of emergency welfare support post-2026, shifting towards a model that combines crisis intervention with longer-term resilience building. Households are advised to contact their local council from April 2026 for specific application details and eligibility criteria, which will vary by area.
