A major new government initiative is set to provide direct cash payments to low-income households across England facing financial emergencies. The Crisis and Resilience Fund (CRF) will allocate £1 billion annually to local councils for a three-year period, starting from 1 April 2026.
Who is eligible for the cash support?
The scheme is designed to offer a more flexible and dignified alternative to emergency food parcels. Under the new rules, councils can provide money to individuals and families experiencing a financial crisis due to an unexpected drop in income, such as redundancy, or a sudden essential expense like a broken boiler.
Eligibility is not dependent on whether someone currently receives benefits, marking a significant shift in approach. The government states this direct cash-first model fulfils a manifesto pledge to end "mass reliance on emergency food parcels".
How will the emergency funds work?
The Department for Work and Pensions has outlined three core purposes for the funding: crisis payments for immediate needs, housing payments to cover unexpected shortfalls, and resilience services to fund local charities and organisations.
Local authorities will have the discretion to decide how to split their allocation between these areas. The money is intended to help in situations such as job loss, fleeing an abusive relationship, or covering an unexpected bill.
Applications must be made directly through local councils. All English authorities are required to make their application processes public by 1 April 2026 and must publish transparent reports on how the money is used. Some councils may use systems like Post Office cash vouchers or Pay-by-Text platforms for distribution.
Reaction and funding concerns
The CRF replaces the temporary Household Support Fund, which was due to finish at the end of March 2026. While the annual funding level is similar, its longer-term three-year commitment is intended to help councils plan support services more effectively.
However, the funding amount has drawn criticism. A recent Local Government Association survey found that most councils in England do not believe the current level is sufficient to meet local welfare needs.
Charity leaders have welcomed the scheme's principle. Emma Revie, Chief Executive of the Trussell Trust, said it was "a vital step towards ensuring no-one is forced to turn to a food bank to get by". Lynn Perry, Chief Executive of Barnardo's, added that the guidance "has the potential to make a meaningful difference to children growing up in poverty."
Separate funding will also be granted to the devolved administrations in Scotland, Wales, and Northern Ireland, where local authorities will decide how it is utilised.
