The Department for Work and Pensions (DWP) has announced a major overhaul of emergency financial support for vulnerable households, confirming that a new £1 billion multi-year fund will launch in April 2026.
What is the New Crisis and Resilience Fund?
This new scheme, named the Crisis and Resilience Fund, is set to directly replace the existing Household Support Fund, which is scheduled to close at the end of March 2026. The central aim is to provide local authorities across the UK with longer-term certainty to deliver targeted aid.
Councils will be empowered to distribute support through a variety of means, including direct cash payments, assistance with rent, and the provision of food vouchers. The Government states the fund is designed to "help prevent households from falling into crisis" by offering emergency financial support.
Two Key Types of Support Payments
The fund will administer two distinct forms of payment, each with its own eligibility framework.
The first is the new Crisis Payment, aimed at individuals facing immediate financial emergencies. According to fresh DWP guidance, councils will have significant discretion in setting the exact criteria, which could lead to a variation in support available depending on location—a scenario often described as a 'postcode lottery'.
Importantly, the support should not be restricted solely to benefit claimants. Local authorities are advised to prioritise those who have suffered a sudden, unexpected expense or drop in income, or those deemed at high risk of financial crisis.
Payments should primarily be 'cash-first', which can encompass:
- Physical cash
- Direct bank transfers
- Vouchers (with applicants given a choice)
In some cases, councils may decide providing essential household items like cookers or fridge-freezers is more appropriate. There is also scope for providing food vouchers to parents of children eligible for free school meals during the summer holidays.
New Housing Payment to Replace Old Scheme
The second pillar of the fund is a new Housing Payment, which will take the place of the current Discretionary Housing Payment. This support is specifically for costs associated with renting a home.
Eligible costs can include:
- Rent in advance
- Rental deposits
- Moving costs
To qualify, applicants must already be in receipt of Housing Benefit or the housing cost element of Universal Credit. Councils will have the power to backdate payments and will determine the duration of any award. Payments may be made directly to third parties such as landlords or estate agents where suitable.
The announcement provides clarity on the future of crisis support beyond the lifespan of the current Household Support Fund, placing greater responsibility and flexibility in the hands of local councils to address acute financial need from April 2026 onwards.
