The Minister of State, Department for Work and Pensions (Dame Diana Johnson)
This Government recognise 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 have 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 preventive 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 have 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.
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