The Department for Work and Pensions (DWP) has unveiled a major new support package for low-income households across England. A new £1 billion multi-year Crisis and Resilience Fund will be made available to local councils, targeting families who receive specific benefits and face sudden financial shocks.
What the New Crisis Fund Includes
The fund, announced by the Labour government, is designed to offer a dual approach to financial hardship. It will provide two distinct types of payment to eligible individuals. The first is a crisis payment aimed at those encountering an unexpected financial emergency.
The second is a housing payment, which is set to commence from April 2026. This element will directly replace the existing system of Discretionary Housing Payments (DHPs). Its purpose is to offer further financial assistance with housing costs where needed.
Who is Eligible for Support?
To qualify for the new housing payment, applicants must be entitled to either Housing Benefit or Universal Credit (UC) that includes a housing costs element towards their rent. This definition also extends to people living in Shared Ownership properties who have a rental liability.
Importantly, the term ‘entitled’ includes individuals who qualify for these benefits but have not yet received their first payment. Local authorities will have broad discretion in interpreting what constitutes a ‘housing cost’, but it is generally expected to cover:
- Rental liability and rent in advance.
- Rental deposits.
- Other lump-sum costs tied to housing needs, such as removal expenses.
Payments can be made directly to the claimant or, where appropriate, to third parties like landlords or estate agents.
Government Commitment to Financial Resilience
A spokesperson for the Labour Party government stated the fund underscores their commitment to tackling poverty. They said the initiative aims to deliver more security and opportunity for families nationwide.
“The £1bn multi-year Crisis and Resilience fund will help prevent households from falling into crisis by giving local authorities the certainty they need to provide emergency financial support,” the spokesperson explained. The fund is not just a reactive measure for crises but is also intended to support activities that build long-term individual and community financial resilience.
With the first housing payments set for April 2026, local councils will soon receive detailed guidance on administering the new fund, marking a significant shift in how emergency support for living and housing costs is delivered in England.
