The UK government will introduce a £1 billion-a-year scheme to give households on low incomes direct access to emergency cash when faced with sudden financial shocks. The Crisis and Resilience Fund, set to launch in April, will run for an initial three years and replace the temporary Household Support Fund, which has been repeatedly extended since its introduction during the pandemic in 2021.
Under the new programme, individuals can apply for emergency payments through their local council, regardless of whether they receive benefits. Councils will be able to award support in cases such as sudden income loss, redundancy, urgent bills like a broken boiler, or situations where early intervention could prevent deeper financial hardship.
The fund represents a shift from previous welfare initiatives that relied heavily on vouchers, food parcels, or referrals to food banks. Ministers have encouraged councils to provide cash payments directly, aiming to reduce what they describe as “mass reliance on emergency food parcels” and give households more flexibility and dignity in how support is used.
The Department for Work and Pensions (DWP) has outlined three areas for funding: immediate crisis payments, housing-related support for sudden shortfalls, and longer-term resilience services, including support for charities and local organisations that provide frontline assistance.
While the overall funding level matches the previous Household Support Fund, some councils have raised concerns that it may not cover rising demand. A recent survey by the Local Government Association found that most councils in England believe current welfare funding is insufficient to meet local needs, particularly given ongoing cost-of-living pressures.
Despite these concerns, local authorities and charities have welcomed the guaranteed three-year funding, which allows them to plan support programmes more effectively instead of relying on short-term extensions.
Emma Revie, co-chief executive of the Trussell Trust, described the new fund as “an important step forward” that could reduce reliance on food banks. Barnardo’s, a children’s charity, said cash-first support would give families greater agency and choice during times of crisis.
Some councils are already piloting similar approaches, using Post Office cash vouchers or digital “pay-by-text” systems that allow people to access funds quickly at cash machines. The new guidance allows councils flexibility in allocating funding across crisis payments, housing support, and resilience services, but they must publish how the money will be spent and open applications to the public by 1 April.
Funding will also be provided to Scotland, Wales, and Northern Ireland, with devolved administrations deciding how it is distributed locally.
Minister for Employment Dame Diana Johnson said the scheme would give councils the certainty needed to intervene early and prevent families from being pushed into crisis. “The aim is to provide fast, practical help at the point people need it most,” she said, highlighting the government’s commitment to supporting households during financial emergencies.
