The Department for Work and Pensions (DWP) has announced detailed plans for a major new support scheme, set to launch in April 2026, aimed at helping millions of households facing severe financial pressure. The new 'Crisis and Resilience Fund' will replace the existing Household Support Fund with a £1 billion annual commitment guaranteed for at least three years.
A New Lifeline for Households in Crisis
Guidance issued to local authorities on Tuesday, 14 January 2026, confirms the fund's structure. It is designed to provide a more stable, long-term resource for councils to administer support, moving away from the previous yearly funding confirmations. The initiative responds to stark research, such as that from the Trussell Trust, which found 14 million adults are going without food due to unaffordability, compounded by persistently high household bills.
The fund will empower councils to offer a range of support, including cash payments, rent assistance, and food vouchers. A key feature is the introduction of two distinct new payments: the Crisis Payment and the Housing Payment, each with different purposes and eligibility rules.
The New Crisis Payment: Cash-First Support
The Crisis Payment is intended to assist individuals and families facing a sudden financial shock or at imminent risk of crisis. Crucially, eligibility will not be restricted solely to those claiming benefits, giving local authorities broader discretion to help those in need.
The DWP has instructed councils to adopt a 'cash-first' approach, meaning direct cash payments or vouchers should be the default, unless there is a compelling reason otherwise. This support is for short-term, emergency needs—such as being unable to afford food, heating, or essential appliances—triggered by events like a health issue, theft, leaving an abusive relationship, or a gap in income. It is not designed to supplement regular income.
Lynn Perry, chief executive of Barnardo's, welcomed the guidance, stating it "has the potential to make a meaningful difference to children growing up in poverty" by offering support that protects dignity and reaches those most in need.
The New Housing Payment: Targeted Rent Support
Separately, the new Housing Payment will specifically target help with housing costs, replacing the Discretionary Housing Payment from April 2026. This support can cover rent in advance, deposits, shortfalls, or lump sums associated with moving.
Unlike the Crisis Payment, access to the Housing Payment will be restricted to claimants receiving either Housing Benefit or Universal Credit with the housing element for rent. However, the DWP notes that those in housing need who do not qualify may be considered for a Crisis Payment instead. This payment can also be more long-term and regular, for example supporting someone with a rental shortfall while they seek work.
While the Local Government Association has welcomed the multi-year commitment, a survey cited by The Independent in October 2025 indicated concern, with only 2% of councils believing the fund would meet local needs "to a great extent."
A Government spokesperson said: "We're committed to tackling poverty and delivering more security and opportunity for families across the UK. The £1bn multi-year Crisis and Resilience fund will help prevent households from falling into crisis by giving local authorities the certainty they need to provide emergency financial support."
