The Government Department for Work and Pensions (DWP) has announced the launch of its Crisis and Resilience Fund (CRF) in England from 1st April 2026. It will receive £1bn annually over the next three years from the Treasury to help support households in financial crisis. Similar funding will be made available to Scotland, Wales and Northern Ireland, where devolved governments will choose how to allocate it.
In England, the CRF replaces and merges the Household Support Fund (HSF), which is due to expire at the end of March this year, with the Discretionary Housing Payment (DHP) scheme.
It has been well received by charities at the forefront of community support for its focus on a more holistic approach to preventing crises that cause long-term financial hardship. While local authorities have welcomed the three-year ring-fenced funding, which allows for better long-term planning, they have significant concerns. Specifically, they are disappointed that funding levels have stagnated despite rising costs and increased demand. Additionally, they fear there is insufficient time to transition successfully to the new funding structure.
How will the Crisis and Resilience Fund work?
The three main objectives that each council will need to address are ‘Provision of effective crisis support’; ‘Improving individuals’ financial resilience’ and ‘Bolstering the local-level support landscape’. The exact way that the fund will work will be set out by each council according to its priorities, but will follow the DWP’s guidance to “support low-income households who encounter a financial shock and to support activity that builds individual and community financial resilience”. Financial crises arising from unexpected blows, such as a sudden loss of income, the failure of a vital home appliance, or additional costs from unexpected events, are usually most detrimental to households with lower financial resilience. Last year, the Financial Conduct Authority revealed that 1 in 10 adults had no cash savings at all, and a further 20% had less than £1,000, reflecting the extent to which households could be vulnerable to shock events.
In contrast to its predecessor, the Crisis and Resilience Fund (CRF) will provide ‘cash-first’ support rather than vouchers or emergency food parcels, reflecting the government’s commitment to tackling reliance on food banks. According to the DWP, 'A cash-first approach prioritises cash payments (including physical and digital methods such as physical cash, bank transfer and cash-out vouchers)'.
The approach was praised by The Trussle Trust when it highlighted, “There is clear evidence that offering cash grants, rather than shopping vouchers or food parcels, is the most effective and dignified way to help in a financial crisis, offering the speed, choice and flexibility needed to prevent hardship from escalating.” Local Authorities will be required to set up a ‘crisis payment’ and ‘housing payment’ scheme and have been guided to ensure that individual and community resilience is strengthened by funding initiatives that address crisis prevention on a local level. It will be down to councils to assess where best to spend money to build community resilience.
Who can access Crisis and Resilience Fund support and how?
Individuals, particularly those on low incomes, who have suffered a financial shock will be able to apply to their local authority for support all year round. Applicants should present as needing short-term help, as the fund is not designed to provide ongoing support. However, a financial shock can take almost any form, but will be assessed on whether it affects access to:
- food
- water
- housing
- essential toiletries and hygiene products
- energy for domestic heating, cooking or lighting
- clothing, including uniform, warm winter clothing and shoes
- essential furniture and appliances
- essential transport-related costs
- digital and connectivity essentials like broadband or phone bills
- other essential needs that are assessed to cause harm if not remedied
Frontline local authority staff will gauge the level of support that can be granted and for how long. Again, the DWP highlights that a financial crisis may take other forms and that needs may differ from those listed above, so local authorities are expected to assess them on a case-by-case basis to ensure funds are allocated appropriately.
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