A new national funding scheme will give people on low incomes across England access to emergency cash when they face sudden financial pressure.

The Crisis and Resilience Fund will launch at the start of April, providing £1 billion a year for the next three years. Applications will be made through local councils, and people will be eligible regardless of whether they currently receive benefits.

Under the new framework, councils can offer support to households experiencing a financial shock due to an unexpected expense or loss of income. This could include situations such as a broken boiler, redundancy, leaving an abusive relationship, or dealing with an unforeseen bill. The aim is to prevent people from tipping into a more profound crisis.

The fund replaces the Household Support Fund, which has been extended on a short-term basis since its introduction in 2021 and was due to end in March. While the overall funding level remains broadly the same, some councils have expressed concern that the allocation will still fall short of local welfare needs. A recent Local Government Association survey found that most councils do not believe existing funding is sufficient.

A key change is the move towards direct cash payments. The Government hopes this will reduce reliance on food banks and other emergency provisions, supporting its commitment to end mass dependence on food parcels. Councils will have discretion over how to split funding between crisis payments, housing support for shortfalls, and resilience services that fund charities and frontline organisations.

Several councils already operate cash-first approaches, using Post Office vouchers or digital pay-by-text systems. Charities, including Barnardo’s, argue this approach gives people greater choice and dignity over how they manage their finances.

Local authorities must publish how they will use the funding and open applications to the public by 1 April.

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