Minister for Employment (Dame ): This Government recognises
that greater certainty helps local authorities to design and
deliver sustainable plans for local welfare.
As announced by the Chancellor as part of the Spending Review,
from 1 April 2026, the Crisis and Resilience Fund will come into
effect in England, providing £842 million per year (£1 billion
including Barnett impact) to reform crisis support, while
maintaining Discretionary Housing Payments in Wales. This will be
the first multi-year settlement for locally delivered crisis
support. Alongside this, the Government has made an additional
£27 million available through the Fund to local authorities in
England for 2026/27, to support people in crisis following the
sharp increases in oil heating prices, which is targeted at areas
with higher reliance on oil heating.
The Fund brings together existing provisions by replacing the
Household Support Fund and incorporating Discretionary Housing
Payments in England when both schemes end on 31 March 2026,
simplifying crisis support into a single, streamlined fund. This
will make it easier for local councils to deliver help and for
people to access it, while ensuring that vital assistance remains
available for those who need it. DWP will continue to administer
Discretionary Housing Payments in Wales and regulations have been
amended to reflect this change.
The Crisis and Resilience Fund is designed to respond to sudden
and unexpected financial expenses that place people at risk of
hardship, including sharp, unforeseen increases in essential
costs. The Fund will provide a safety net for people on low
incomes who face financial crisis and need immediate support,
including help with housing costs. Crucially, it also represents
a significant opportunity for local councils to move beyond
short-term responses, by enabling investment in preventative
approaches that strengthen financial resilience and reduce repeat
crisis. The Fund supports local councils to work with voluntary
and community sector partners to strengthen local support
networks, so that crisis support can act as a gateway to wider
help that addresses the underlying drivers of hardship,
supporting the Government's wider efforts to reduce poverty,
prevent homelessness and end mass dependence on emergency food
parcels.
The Government has worked closely with local councils and
stakeholders on the detailed design of the Fund through a
structured co-design process. With scheme guidance, and
allocations now published, the Crisis and Resilience fund gives
local councils the clarity and confidence to plan for delivery
from the outset.
