The UK government has announced a new nationwide funding scheme aimed at helping people facing sudden financial hardship. Beginning this April, the Crisis and Resilience Fund will provide £1 billion annually over the next three years to support low-income households across England.
Under the scheme, individuals experiencing a financial emergency such as a job loss, unexpected expense, or broken household equipment will be able to apply for direct cash assistance through their local councils. Crucially, the program will be open to everyone, regardless of whether they currently receive welfare benefits.
This initiative replaces the Household Support Fund, a temporary scheme first introduced in 2021 to help families through the cost-of-living crisis. While the overall funding level remains similar, some councils have expressed concern that the amount may still fall short of meeting growing local welfare needs. A recent Local Government Association survey found that most councils believe the current funding will not fully address the demand for emergency assistance.
One of the key changes in the new system is its cash-first approach. Instead of relying on vouchers or food parcel referrals, councils will now be able to provide direct financial support to individuals. The government hopes this shift will help reduce “mass reliance on emergency food parcels” and restore dignity and choice to those in crisis.
Emma Revie, co-chief executive of the Trussell Trust, welcomed the announcement, calling the fund “a vital step towards ensuring no one is forced to turn to a food bank to get by.” Similarly, Barnardo’s chief executive Lynn Perry praised the approach, saying it “protects dignity, offers real choice, and reaches those who need it most,” while highlighting its potential to positively impact children living in poverty.
According to guidance from the Department for Work and Pensions, the fund can be used in three main ways: crisis payments for immediate needs, housing support for those facing rent shortfalls, and resilience funding for charities providing frontline assistance. Local authorities will have flexibility in how they distribute funds and must publish their plans and open applications by April 1.
Devolved administrations in Scotland, Wales, and Northern Ireland will also receive proportionate funding, with discretion over how the money is allocated within their regions.
