The Department for Work and Pensions (DWP) launched its new Crisis and Resilience Fund (CRF) in April, replacing the now-defunct Household Support Fund. The scheme will run until March 2029 under Prime Minister Andy Burnham and Chancellor John Healey.
The DWP-funded scheme aims to provide a "safety net for those on low incomes" and to build "financial resilience" for personal finance emergencies. It offers direct cash payments and vouchers to those in need, available all year round from this April.
Nine reasons for a crisis payment
There is no prescriptive list of eligible reasons, and a "person-centred, needs-based" approach is used. The DWP said a crisis could be sparked by something as small as a bus timetable change.
However, the department outlined nine examples of what a Crisis Payment could support:
- food
- water including for drinking, washing, cooking, as well as for sanitary purposes and sewerage
- housing costs
- period and hygiene products such as soap and toothpaste
- energy for any form of fuel used for domestic heating, cooking or lighting, including oil or portable gas cylinders
- clothing including uniform, warm winter clothing and shoes
- essential furniture and appliances such as beds and bedding, washing machines, window coverings and carpets, fridge-freezers and ovens
- essential transport-related costs such as repairing a car, buying a bicycle or bus pass or paying for fuel
- digital and connectivity essentials such as broadband or phone bills
How the scheme works
The DWP said: "Each Unitary Authority and County Council must deliver a CRF Crisis Payment scheme that offers payments to individuals in crisis."
"Authorities must name their schemes as 'Crisis Payment'. Authorities should allocate their budgets accordingly to aim for Crisis Payments to be available all-year round."
"Crisis Payment schemes will be cash-first and operated primarily on an application-basis. Authorities must adopt a needs-based approach that seeks to address underlying needs alongside provision of immediate support."
The money is intended for "occasional short term needs" and not as a regular income source, but it can be awarded for any good reason, the DWP added.
Support is aimed at low-income households experiencing a financial shock - a sudden, unexpected expense or drop in income, or preventing individuals from entering crisis. The DWP said: "A financial shock, such as a car or household appliance breaking down, a bus route being cut or an unexpected bill, can be the tipping point that leaves a household in crisis. Well-timed and effective crisis support, delivered through a cash-first approach, can prevent a financial shock creating or escalating a crisis."
As well as direct cash payments, the scheme includes financial education, literacy and debt management information.
