Government to offer cash payouts for people in financial crisis

The government announced a new Crisis and Resilience Fund that lets councils provide cash payments to people facing sudden financial shocks, replacing the Household Support Fund and guaranteeing at least three years of funding.

The government has announced a new Crisis and Resilience Fund to allow councils to provide cash payments to people facing sudden financial shocks. It replaces the Household Support Fund, a temporary scheme set up in 2021 that was due to finish at the end of March. The new guidance guarantees at least three years of funding and keeps broadly the same overall funding level as the previous scheme. Key points: - Councils may make cash payments for sudden, unexpected expenses or drops in income, such as a broken boiler, the loss of a job, or to prevent people entering crisis. - The fund replaces the Household Support Fund, which had been extended on a rolling basis since 2021. - The level of funding is broadly the same as the previous scheme, and a survey for the Local Government Association showed many councils do not believe current funding will be sufficient to meet local welfare needs. - Department for Work and Pensions guidance says the money can be used for crisis payments, housing payments for unexpected shortfalls, and resilience services that fund charities and local organisations providing front-line support. Summary: The measure is intended to give households direct cash help rather than relying solely on hand-out provisions, and the government says it may help reduce mass reliance on emergency food parcels. How local authorities will divide funds between crisis, housing and resilience uses is not specified, leaving local plans and views on sufficiency undetermined at this time.