A new government funding scheme, the Crisis and Resilience Fund, will provide emergency cash support for people on low incomes across England. Starting in April, the fund will allocate £1 billion annually for the next three years, offering a guaranteed funding period that allows councils to plan their local support schemes over the longer term.
Residents will be able to apply for emergency funds through their local council, regardless of whether they currently receive benefits. The fund is designed to help people facing sudden, unexpected expenses or drops in income, such as a broken boiler, redundancy, or other crises that could push them into financial hardship. It replaces the temporary Household Support Fund, which has been extended on a rolling basis since 2021.
The scheme maintains broadly the same level of funding as the previous programme, leaving some councils concerned that it may not fully meet local welfare needs. A recent Local Government Association survey indicated that most councils believe the funding is insufficient to cover all local demand.
A major change from the previous fund is the focus on cash payments rather than vouchers or food parcels, fulfilling the government’s manifesto pledge to reduce reliance on emergency food aid. Councils can distribute the funds directly to individuals, providing them with more agency in how they manage their support and reducing the need for handouts.
The Department for Work and Pensions has outlined that the money can be used for three purposes: crisis payments, housing support for unexpected shortfalls, and resilience services to fund charities and local organisations delivering front-line support. Councils have flexibility in how they allocate the money across these areas, with some already implementing cash-first approaches through Post Office vouchers or Pay-By-Text systems.
Charities have welcomed the fund, highlighting that direct cash support protects dignity, offers choice, and can make a meaningful difference for families and children living in poverty. The Trussell Trust described it as a vital step to ensure no one is forced to turn to food banks, while Barnardo’s emphasised that shifting from vouchers to cash helps millions who rely on government and council support.
A proportionate share of funding will also be provided to Scotland, Wales, and Northern Ireland, with each devolved authority deciding how to use the money. In England, local authorities must publish their plans for the fund and open applications to the public by 1 April. Employment Minister Dame Diana Johnson said the £1 billion fund gives councils the certainty to provide emergency support and prevent families from falling into crisis.
