Millions of households across the United Kingdom are set to receive crucial financial support from next year, as the government unveils a major new fund designed to tackle the ongoing cost of living pressures.
A New Lifeline: The Crisis and Resilience Fund
The Department for Work and Pensions (DWP) has confirmed it will launch a new 'Crisis and Resilience Fund' from April 2026. This significant initiative is set to replace the current Household Support Fund, providing a substantial and guaranteed £1 billion annually for at least three years to local authorities for distribution.
In a move welcomed by anti-poverty campaigners, the fund introduces two key types of support. The first is a 'crisis payment' aimed at individuals facing sudden financial shocks or struggling to afford essential items. Crucially, eligibility for this payment will not be limited solely to those already claiming benefits, marking a broader approach to providing a safety net.
Targeted Housing Support and Local Discretion
A separate 'housing payment' will also be available under the scheme to assist with costs such as rent arrears or deposits for a new home. However, access to this specific support will be more tightly focused, restricted to those already receiving certain qualifying benefits.
Local councils will be granted significant discretion over the exact eligibility criteria for the crisis payment, allowing them to tailor support to local needs. The DWP has stated it will encourage a 'cash-first' approach for addressing short-term needs, giving households the flexibility to prioritise their most pressing expenses.
Context and Implementation
The announcement follows Prime Minister Keir Starmer's recent Christmas message, in which he acknowledged that many families are 'still struggling with the cost of living'. The new fund, revealed on Tuesday 13 January 2026, represents a long-term policy response to these enduring challenges.
With the detailed administration handed to local authorities, the success of the £3 billion-plus programme will depend on clear guidance and sufficient resource for councils to deliver the payments efficiently to those in greatest need from next spring.
