A new Crisis and Resilience Fund (CRF) will be made available to local authorities across England from April 1 to support low-income households in the new tax year. The new fund will replace the current Household Support Fund, which ends on March 31. Councils will receive a total of £1 billion worth of funding to cover the period from April 1, 2026, to March 31, 2029.
This marks the first time a multi-year settlement will be in place for crisis support, replacing the annual cliff-edge funding cycle of previous years, allowing councils to plan ahead. From April, each unitary authority and county council in England must deliver a CRF Crisis Payment scheme that offers payment support to low-income households who have experienced financial shock or to prevent individuals from entering crisis. The DWP advises councils to prioritize digital or physical cash payments, including bank transfers or cash-out vouchers through PayPoint, Post Office, and ATMs.
Payments can be used to help households with food, housing, energy, furniture, and transport costs, among others. There is no prescriptive list specifying eligible expenditure for Crisis Payments; it is at the Authority’s discretion to determine appropriate support by taking a person-centred, needs-based approach. The government says the fund will act as a genuine safety net to prevent families from falling into poverty.
The CRF comes alongside other initiatives, including expanded free school meals and free childcare hours, and legislation to end the two-child limit for families claiming Universal Credit.