The Department for Work and Pensions (DWP) has confirmed a major overhaul of emergency welfare support, with a new Crisis and Resilience Fund (CRF) set to launch in April 2026. This three-year initiative, unveiled by the Labour Government, will replace the previous Household Support Fund introduced under the Conservatives.
What is the New Crisis and Resilience Fund?
The fund is designed to act as a vital safety net for low-income households across England who are struggling with sudden financial shocks or the ongoing cost of living. It will be administered directly by local authorities, consolidating several existing discretionary payment schemes into a single, clearer system.
A central component is the official replacement of Discretionary Housing Payments with a dedicated Housing Payment element. This ensures continued targeted support for residents on Housing Benefit or Universal Credit who face difficulties covering rent, deposits, advances, or removal costs.
How Will Payments and Support Work?
The DWP has mandated a cash-first approach to delivering aid. This includes several modernised methods:
- Barcoded vouchers sent via email, text, or post, which can be redeemed at the Post Office.
- ATM cash vouchers where recipients enter a unique PIN to withdraw money.
- Paypoint cash-out vouchers for flexible access to funds.
Local councils can award Crisis Payments to help with a wide range of essentials, including food, energy, water, clothing, essential furniture and appliances, transport costs (like car repairs or bus passes), and communication bills. In some cases, authorities may provide goods directly.
Eligibility is not restricted to benefit claimants. Councils will use their discretion to assess need based on what constitutes a low income in their local area, offering crucial flexibility.
Building Long-Term Financial Resilience
Beyond immediate crisis intervention, the fund emphasises preventing future hardship through Resilience Services. Local authorities will offer guidance on debt management, benefit entitlement checks, and strategies to maximise household income, aiming to strengthen long-term financial health.
By 2029, the management of the fund will be streamlined, moving solely to Unitary Authorities and County Councils and removing District Councils from the process. This change is intended to create a more cohesive local support network and simplify applications for residents seeking help.
