Councils will administer new Crisis Payment and Housing Payment schemes from April 2026 to help with unexpected expenses and rental costs under a £1bn government fund
The newly introduced Crisis Payment aims to assist individuals who have encountered an unexpected expense or income drop, or those on the brink of a financial crisis. Councils are being guided that this support should not be restricted solely to benefit recipients.
Crisis Payment schemes are designed to prioritise cash – this could take the form of physical money, bank transfers or vouchers – and should primarily operate on an application basis. You should have the option to select a voucher if that is your preference.
There may be circumstances where councils deem it more appropriate to supply essential items, such as fridge-freezers and cookers, instead. These can be refurbished appliances that are still in good working order.
Some councils might opt to provide parents of children eligible for free school meals with food vouchers during the summer holidays, reports the Mirror.
Additionally, there will be a new Housing Payment, set to replace the existing Discretionary Housing Payment. The new Housing Payment is designed to help with rental-related costs, such as advance rent, rental deposits or moving expenses.
To qualify for the new Housing Payment, you must be receiving Housing Benefit or Universal Credit with housing costs towards rental liability.
Your payments could be backdated, and the duration of your award will be at the council’s discretion. Payments may be made to third parties, such as estate agents, appointees and landlords.
A Government spokesperson emphasised the administration’s dedication to addressing poverty, stating: “We’re committed to tackling poverty and delivering more security and opportunity for families across the UK. The £1bn multi-year Crisis and Resilience fund will help prevent households from falling into crisis by giving local authorities the certainty they need to provide emergency financial support.”
