Millions of households are set to receive assistance from two new types of cost of living support payments in the near future.

Scheduled to launch in April 2026, the newly established Crisis and Resilience Fund will provide aid to struggling households through cash payments, rent assistance, food vouchers, and more. This fund will replace the expiring Household Support Fund by March 2026.

Under the Crisis and Resilience Fund, there will be two distinct types of payments. The Crisis Payment, intended for individuals facing crisis situations, will have eligibility criteria determined by local councils.

This approach may lead to varying levels of assistance available based on geographical location, akin to the current Household Support Fund distribution. Recent guidance from the Department for Work and Pensions emphasizes that eligibility should not be limited to benefit recipients. Local councils are encouraged to prioritize individuals experiencing sudden financial strains or facing potential financial crises.

Councils are advised to implement Crisis Payment schemes with a cash-first approach, offering options for physical cash, bank transfers, or vouchers through an application process. In some cases, councils may choose to provide essential items like appliances or offer food vouchers to parents of children eligible for free school meals during holidays.

Additionally, the fund will introduce a new Housing Payment to replace the existing Discretionary Housing Payment, assisting with rental-related costs such as advance rent payments, deposits, and relocation expenses. To qualify for this benefit, individuals must be receiving Housing Benefit or Universal Credit with housing cost coverage.

Eligible recipients may receive retroactive payments, and the duration of the award will be at the discretion of the council. Payments may also be directed to third parties like landlords or estate agents as necessary.

A government representative stated, “We are dedicated to addressing poverty and providing increased stability and opportunities for families nationwide. The £1 billion Crisis and Resilience fund, spanning multiple years, aims to prevent households from entering crisis situations by empowering local authorities to offer emergency financial assistance.”

This initiative underscores the ongoing commitment to supporting vulnerable households and ensuring financial security for all.