Millions of households will soon have access to new forms of financial assistance to address the rising cost of living. In April 2026, the Crisis and Resilience Fund will be introduced to provide support to struggling households through cash aid, rent relief, and food vouchers. This initiative will replace the Household Support Fund, which is set to conclude in March 2026.
Under the new fund, two types of payments will be available. The Crisis Payment is designated for individuals facing immediate crises, with local councils having discretion to determine eligibility criteria. This approach could result in varying support levels based on location, akin to the current Household Support Fund system.
Recent guidance from the Department for Work and Pensions emphasizes that eligibility for the Crisis Payment should not be limited to benefit recipients. Councils are encouraged to prioritize individuals experiencing sudden financial challenges or those at risk of a financial crisis.
The Crisis Payment schemes are designed to prioritize cash-based assistance, including physical cash, bank transfers, and vouchers, with applications being the primary method of operation. However, councils may opt to provide essential items like appliances in certain cases or offer food vouchers to parents of children eligible for free school meals during summer breaks.
Additionally, the fund will introduce a new Housing Payment to assist with rental-related expenses such as advance rent, deposits, and relocation costs. Eligibility for this payment requires receiving Housing Benefit or Universal Credit with housing cost support. The duration and specifics of the payment will be determined by the council, which may also make payments to third parties like landlords and estate agents as needed.
A government spokesperson highlighted the commitment to addressing poverty and enhancing financial stability for families across the UK. The £1 billion Crisis and Resilience fund aims to prevent households from falling into crisis by empowering local authorities to deliver emergency financial aid effectively.