The new schemes will come into force from April
The new Crisis and Resilience Fund will replace the Household Support Fund(Image: Getty Images)
Millions of households will soon be able to access two new types of financial support through their local council. The new Crisis and Resilience Fund (CRF) is set to launch in April 2026, giving local authorities a pot of cash to help residents facing sudden financial costs.
The scheme will officially replace the Household Support Fund, which is currently scheduled to finish at the end of March 2026. Under the new plans, the government has laid out two primary ways people can get help.
The first is a Crisis Payment aimed at those who have been hit by an unexpected event, like an essential appliance breaking or a sudden drop in wages. However, much like previous schemes, the help you get will depend on where you live.
The Department for Work and Pensions (DWP) has confirmed that councils will have the power to set their own rules and decide who is eligible for a pay-out in their area. Across Greater Manchester, local leaders are already preparing for how they will use their share of the funding.
Because the region contains some of the most deprived wards in the country, boroughs like Manchester and Oldham are expected to receive significant allocations to tackle deep-rooted financial instability. By securing this funding for three years, it’s hoped that local officials in the North West can move away from “cliff-edge” temporary schemes and build more permanent support hubs for residents.
The new Crisis Payment is designed to act as a safety net for people on low incomes who find themselves in a period of financial trouble. According to official guidance, councils should prioritise people facing a “financial shock,” which could include:
Emergency repairs (like a broken boiler)Sudden loss of income or redundancyExceptional pressure due to flooding or fireHelp with essentials for those escaping domestic abuse
The government is also pushing for a “cash-first” approach. This means councils are being told to prioritise bank transfers or “cash-out” vouchers that can be used at ATMs, rather than just handing out food parcels.
Guidance issued to councils says this gives people “dignity and choice” to buy what they actually need. However, councils can still provide physical goods like fridges or cookers if they believe it’s the most effective way to help.
The fund also introduces a specific Housing Payment. This is designed to replace the current Discretionary Housing Payments (DHP) and is targeted at people who already get Housing Benefit or Universal Credit but still can’t afford their rent.
The money can be used to help with:
Monthly rent shortfallsRent in advance for a new homeMoving costs and deposits
The new schemes aim to focus on building ‘resilience’ by helping people stay on their feet long term – and not just give a short term fix for an immediate problem. This means some of the money will be used to fund debt advice services, “income maximisation” checks to ensure people are claiming all the benefits they are entitled to, and even digital skills training.
Cllr Dr Wendy Taylor, Chair of the Local Government Association’s Health and Wellbeing Committee, said that reducing financial hardship can have a direct impact in reducing health inequalities across the country. She said: “Financial security and wellbeing are closely intertwined with the overall health and wellbeing of individuals and families and life expectancy, so reducing financial hardship can have a direct impact on reducing existing health inequalities across the country.
“We are pleased that the Government has maintained funding for local welfare support through the new CRF by bringing together the current HSF and DHP schemes. However, it is important that the best of these schemes is retained, particularly their role in supporting long-term financial resilience.
“Streamlining the funds together will be a challenge as they are currently administered by different tiers of local government, with different rules and purposes. Local councils are ready to work closely with DWP and MHCLG as they develop and implement the new approach.
“Councils should have a key role in commissioning and the delivery of these services to ensure that they can be effectively integrated with local services to improve health and wellbeing and deliver for those households in most need. Local councils are best placed to represent the needs of their residents. With only 15 per cent of councils confident the new fund will be ready to implement by April, it is vital that the development of the new approach is informed by the experiences of residents, support organisations and councils.”
There is no single universal eligibility rule for Crisis Payments and councils will decide local criteria within the guidance’s framework. The scheme is scheduled to run for three years, from April 1, 2026, until March 31, 2029. To get help, residents will usually need to apply directly through their local council’s website once the fund is live.
