THE government will introduce a new funding scheme to provide emergency cash support for people on low incomes across England.
The Crisis and Resilience Fund will begin at the start of April and will provide £1bn a year for the next three years. People will be able to apply for support through their local council, whether or not they currently receive benefits, the BBC reported.
Under new guidance, councils can provide money to people facing financial shock caused by a “sudden, unexpected expense or drop in income”, including a broken boiler, loss of a job or action to prevent a crisis.
The scheme will replace the temporary Household Support Fund, which was set up in 2021 and extended on a rolling basis but was due to end in March. Funding levels will be broadly in line with the previous scheme.
Some councils said the allocation is not sufficient, and a recent survey for the Local Government Association found most councils did not believe current funding would meet local welfare needs.
The fund allows councils to give direct cash rather than vouchers or food support. The government said this supports its aim to reduce reliance on emergency food parcels and gives councils certainty to plan support over three years, the BBC reported.
Guidance from the Department for Work and Pensions says funds can be used for crisis payments, housing payments and resilience services delivered by charities and local organisations.
A proportionate share of funding will go to Scotland, Wales and Northern Ireland. In England, councils must publish their plans and open applications by 1 April.
Minister for Employment Dame Diana Johnson said: “Thanks to this £1bn fund local authorities will have the certainty to provide emergency support and stop families falling into crisis in the first place.”
