Millions of households are set to benefit from two new types of cost of living support payments soon. The Crisis and Resilience Fund, launching in April 2026, will provide cash payments, rent assistance, food vouchers, and more to struggling households, replacing the expiring Household Support Fund.
Under the Crisis and Resilience Fund, there will be two payment options available. The Crisis Payment will target individuals facing crises, with councils having discretion over eligibility criteria, potentially leading to variations in support availability similar to the current Household Support Fund.
Recent guidance from the Department for Work and Pensions (DWP) emphasizes that the Crisis Payment should not be limited to benefit recipients. Instead, councils are urged to prioritize individuals hit by sudden expenses, income drops, or financial instability.
Crisis Payment schemes are expected to prioritize cash disbursements, including physical currency, bank transfers, and vouchers, with applications being the primary mode of operation. In some cases, essential items like appliances may be provided, and some councils could opt to issue food vouchers to parents of children eligible for free school meals during the summer.
Additionally, the fund will introduce a new Housing Payment to replace the existing Discretionary Housing Payment, assisting with rental-related costs such as advance rent, deposits, and moving expenses. Qualification for the Housing Payment necessitates the receipt of Housing Benefit or Universal Credit with housing contributions. Eligible recipients may receive backdated payments, with the duration of support to be determined by the council.
The fund may also facilitate payments to third parties like estate agents and landlords as needed. A government representative expressed commitment to combating poverty and enhancing financial security for UK families through the £1 billion Crisis and Resilience fund, aimed at preventing household crises by empowering local authorities to offer emergency financial aid.