A new government funding scheme designed to provide emergency financial help to people on low incomes across England will come into force at the start of April, ministers have confirmed.
The Crisis and Resilience Fund will provide £1bn a year for the next three years, offering a more stable, long-term replacement for the Household Support Fund, which has been extended repeatedly since its introduction in 2021 and was due to expire at the end of March.
Under the new scheme, people experiencing sudden financial hardship will be able to apply for emergency cash through their local council, regardless of whether they currently receive state benefits.
The Department for Work and Pensions (DWP) says the fund is intended to support those facing a “sudden, unexpected expense or drop in income”, such as a broken boiler, redundancy, or an urgent bill that could push a household into crisis.
In guidance issued to councils, the DWP said funding can be used for three main purposes: crisis payments for immediate needs, housing-related payments for those facing shortfalls, and resilience services that support charities and local organisations delivering frontline help.
There is no requirement on how councils should divide the funding between these areas.
A key change from the previous scheme is a stronger emphasis on direct cash support rather than vouchers or food parcels. Ministers hope this shift will help fulfil a government manifesto pledge to end what it has described as “mass reliance on emergency food parcels”.
Charities working with people in poverty have welcomed the move. Emma Revie, co-chief executive of the Trussell Trust, said the fund represented “a vital step towards ensuring no-one is forced to turn to a food bank to get by”.
Barnardo’s also praised the cash-first approach, arguing that it gives people greater dignity, choice and control over how they meet their immediate needs.
Some councils already operate similar systems, distributing money through Post Office cash vouchers or text-based platforms that allow recipients to withdraw funds from cash machines.
Barnardo’s chief executive Lynn Perry said the new guidance had “the potential to make a meaningful difference to children growing up in poverty”.
However, concerns remain about whether the funding will be sufficient. A recent Local Government Association survey found most councils in England do not believe current funding levels will meet local welfare needs.
While the new fund broadly matches the value of the previous scheme, some local authorities had hoped for an increase amid ongoing cost-of-living pressures.
In England, councils must publish details of how they plan to use the money and open applications to the public by 1 April. Scotland, Wales and Northern Ireland will receive proportionate funding, with devolved administrations deciding how it is spent.
Minister for Employment Dame Diana Johnson said the fund would give councils certainty and flexibility. “Thanks to this £1bn fund, local authorities will have the certainty to provide emergency support and stop families falling into crisis in the first place,” she said.
