Millions of households are set to receive assistance through two new types of cost of living aid. In April 2026, the Crisis and Resilience Fund will be introduced to provide financial aid, rent assistance, food vouchers, and other support to struggling households, replacing the expiring Household Support Fund.
The Crisis and Resilience Fund will offer two distinct payments. The Crisis Payment will be granted to individuals facing crises, with councils having flexibility in determining eligibility criteria, potentially leading to varying assistance availability based on location, akin to the current Household Support Fund model.
Recent guidance from the Department for Work and Pensions highlights that the Crisis Payment should not be restricted to benefit recipients. Councils are advised to prioritize individuals experiencing sudden financial strains or at risk of financial instability.
The 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 some cases, councils may opt to provide essential items like kitchen appliances to recipients. Additionally, parents of children eligible for free school meals may receive food vouchers during summers.
Moreover, the fund will introduce a new Housing Payment to replace the existing Discretionary Housing Payment, aiding with rental costs such as advance rent, deposits, and moving expenses. To qualify, individuals must receive Housing Benefit or Universal Credit covering housing expenses.
Payments may be directed to third parties such as landlords and estate agents where necessary. A government spokesperson emphasized the commitment to alleviating poverty and enhancing financial security for families through the £1 billion Crisis and Resilience fund, providing local authorities with the resources to offer emergency financial aid.
