DWP Unveils Two New Cash Bonus Payments for Millions of UK Households
The Department for Work and Pensions (DWP) has announced two new bonus payments, marking a significant shift in support for millions of households across the United Kingdom. These payments are being administered as part of the newly established Crisis and Resilience Fund (CRF), which aims to provide direct financial assistance to those in need.
A Turning Point for Local Crisis Support
Policy in Practice has praised this initiative, describing it as a "turning point for local crisis support in England." Deven Ghelani, from the organisation, highlighted the importance of a cash-first approach, stating that it offers people choice and dignity while allowing them to address the root causes of their crises. This method is designed to work across various emergencies, not just food insecurity, and enables faster, simpler delivery of aid.
Details of the Crisis and Resilience Fund
The Crisis and Resilience Fund will allocate £1 billion annually to local councils for the next three years, starting from April. This substantial funding is intended to replace the Household Support Fund (HSF), which previously assisted nearly nine million people in its initial phase from October 2021 to March 2022.
Two Types of Payments
Crisis Payment: This payment is designed to offer financial support to individuals facing immediate crises across the UK. It aims to provide timely assistance to those in urgent need.
Housing Payment: This new payment will be introduced nationwide to help with housing costs for those struggling financially. It will replace the discretionary housing payment for claimants from April, offering more structured support.
Successful Trial in Plymouth
A trial conducted in Plymouth, in collaboration with Policy in Practice, demonstrated the effectiveness of this approach. Over six months, 94 households received tailored support, unlocking £25,000 in direct awards and approximately £125,000 in potential annual income. Additionally, engagement with community sessions for older residents increased by 67 percent.
One Housing Benefit advisor in the south west noted, "It has been a game-changer because it allows us to have direct, informed conversations about residents’ finances and budgeting pressures."
Future Implementation and Goals
Deven Ghelani emphasised that delivering the Crisis and Resilience Fund effectively will require a new way of working, focusing on people rather than processes. This involves using data to better understand needs, employing cash to support dignity and choice, leveraging partnerships to reach individuals in trusted settings, and using crisis moments as opportunities to build long-term resilience.
A Government spokesperson affirmed, "We're committed to tackling poverty and delivering more security and opportunity for families across the UK. The £1 billion 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."
