Millions of households are set to receive support through two new types of cost of living assistance. In April 2026, the Crisis and Resilience Fund will be introduced to provide financial aid, including cash payments, rent assistance, and food vouchers, to struggling households in place of the expiring Household Support Fund.
Under the new fund, two distinct payments will be available. The Crisis Payment will target individuals facing crises, with local councils having the discretion to determine eligibility criteria. This setup may lead to varying levels of assistance and eligibility, similar to the current Household Support Fund model.
Recent guidance from the Department for Work and Pensions (DWP) emphasizes that the Crisis Payment should not be limited to benefit recipients. Councils are encouraged to prioritize individuals experiencing sudden financial challenges or a drop in income to prevent financial crises.
The Crisis Payment schemes are designed to prioritize cash assistance through methods like bank transfers, physical cash, and vouchers, with a focus on applications. In some cases, councils may opt to provide essential items like cookers and fridge-freezers. Additionally, parents of children eligible for free school meals could receive food vouchers during the summer.
Furthermore, the fund will introduce a new Housing Payment to replace the Discretionary Housing Payment, assisting with rental-related costs such as deposits and moving expenses. Eligibility for this payment requires receiving Housing Benefit or Universal Credit with housing cost coverage. Payments may be retroactive, and the duration of the award will be determined by the council.
Payments under the fund may be directed to third parties like landlords, estate agents, or appointees when appropriate. A Government spokesperson highlighted the commitment to combating poverty and enhancing financial security and opportunity for families through the £1 billion Crisis and Resilience fund, aiming to provide emergency financial support and prevent households from facing crises.