Millions of households are set to receive support through two new types of cost of living assistance. The Crisis and Resilience Fund, launching in April 2026, will offer cash aid, rent support, and food vouchers to struggling households, replacing the expiring Household Support Fund.
Under the new fund, two payment options will be available. The Crisis Payment will target individuals facing immediate crises, with local councils granted discretion in determining eligibility criteria, potentially leading to variations in available aid similar to the current support system.
Recent guidance from the Department for Work and Pensions (DWP) emphasizes that the assistance should extend beyond benefit recipients, focusing on individuals experiencing sudden financial setbacks or at risk of financial crisis.
Crisis Payment schemes will prioritize cash-based assistance, including cash, bank transfers, and vouchers, with applications being the primary mode of operation. Some councils may opt to provide essential items like appliances, while others could offer food vouchers to parents of children eligible for free school meals during summer.
Additionally, the fund will introduce a new Housing Payment to assist with rental-related expenses, replacing the existing Discretionary Housing Payment. To qualify, individuals must be receiving Housing Benefit or Universal Credit with housing costs included. Eligible recipients may receive backdated payments, with the duration of support determined by the council.
Payments may also be directed to third parties like estate agents and landlords as appropriate. A Government spokesperson highlighted the fund’s aim to address poverty and provide stability for families across the UK, ensuring local authorities have the resources to offer emergency financial aid.