Millions of households are set to benefit from two new types of cost of living support payments. The upcoming Crisis and Resilience Fund, launching in April 2026, will provide cash assistance, rent support, food vouchers, and more to struggling households. This fund will replace the expiring Household Support Fund.
Under the Crisis and Resilience Fund, two payment options will be available. The Crisis Payment, intended for individuals facing crisis situations, will have eligibility criteria determined by local councils. This approach may lead to variations in available assistance, similar to the current Household Support Fund.
Recent guidance from the Department for Work and Pensions (DWP) emphasizes that the Crisis Payment should not be restricted to benefit recipients only. Councils are encouraged to prioritize individuals experiencing sudden financial challenges or at risk of a financial crisis.
Crisis Payment schemes are expected to prioritize cash-based assistance, including physical cash, bank transfers, and vouchers, with applications being the primary mode of operation. In certain cases, councils may opt to provide essential items like appliances instead of cash. Additionally, some councils may choose to offer food vouchers to parents of children eligible for free school meals during the summer.
The new Housing Payment, part of the Crisis and Resilience Fund, will replace the existing Discretionary Housing Payment. This payment aims to assist with rental-related expenses such as advance rent, deposits, and moving costs. Eligibility requires receiving Housing Benefit or Universal Credit with housing cost coverage. Payments may be retroactive, and the duration of the award will be at the discretion of the council.
Furthermore, payments under these schemes may be directed to third parties like landlords or estate agents as necessary. A government spokesperson highlighted the fund’s purpose of preventing households from falling into crisis and providing emergency financial support through local authorities.