The UK government is introducing a new Crisis and Resilience Fund, set to provide £1 billion annually for three years to low-income individuals across England.
Beginning April 1, people will be able to apply for emergency funds directly through their local councils, irrespective of whether they currently receive benefits. The fund aims to assist individuals facing "a sudden, unexpected expense or drop in income," such as a broken boiler, job loss, or to prevent the escalation of financial hardship.
This new scheme replaces the temporary Household Support Fund, which was scheduled to conclude at the end of March. The funding level for the new scheme is comparable to its predecessor. Some councils have expressed disappointment that the allocation was not increased, with a recent survey by the Local Government Association indicating that most English councils do not believe the current funding will adequately meet local welfare needs.
A significant change in the new fund is its emphasis on direct cash payments, a departure from the previous scheme which often involved vouchers or food parcels. This shift aligns with a manifesto pledge to reduce reliance on emergency food parcels. The three-year funding guarantee is intended to allow councils to plan their support services over a longer term.
The Department for Work and Pensions guidance outlines three main purposes for the money: crisis payments for unexpected financial shocks (e.g., redundancy, unexpected bills, leaving an abusive relationship), housing payments for those facing unexpected shortfalls, and resilience services to support charities and local organizations providing front-line assistance. Local authorities retain discretion on how to allocate their funding across these purposes.
Charities such as the Trussell Trust and Barnardo's have welcomed the new fund, particularly the focus on cash payments. Emma Revie, co-chief executive at the Trussell Trust, stated the fund is a "vital step towards ensuring no-one is forced to turn to a food bank to get by." Barnardo's emphasized that providing cash offers recipients greater agency in how they spend the money. Lynn Perry, Barnardo's chief executive, noted that the guidance supports dignity and choice, potentially making a "meaningful difference to children growing up in poverty."
A proportionate level of funding will also be provided to Scotland, Wales, and Northern Ireland, with decisions on its use left to their respective authorities. In England, local authorities are required to publish their plans for using the money and open applications to the public by April 1. Minister for Employment Dame Diana Johnson highlighted that the fund provides certainty for local authorities to offer emergency support and prevent families from experiencing crisis.