The Department for Work and Pensions (DWP) has revealed plans to introduce two new financial support payments aimed at households in crisis. The new measures, part of the Crisis and Resilience Fund (CRF), are expected to provide much-needed relief for vulnerable individuals across the UK starting in April.
This announcement marks a significant shift in the government’s approach to tackling financial hardship, with a focus on flexibility and dignity. The payments will address immediate housing and emergency needs, offering tailored financial assistance designed to ease pressure on those most affected by economic challenges.
A Shift Towards Cash-First Solutions
The UK government’s new initiative, known as the Crisis and Resilience Fund (CRF), will provide £1 billion annually to councils across the country for the next three years. According to the DWP, the fund will support two types of payments: the crisis payment and the housing payment. The former is aimed at individuals facing urgent financial difficulties, while the latter will help cover housing-related costs for those struggling with rent or other accommodation expenses.
This shift to a “cash-first” model has been widely welcomed by experts, including Policy in Practice. Deven Ghelani, a representative from the think tank, commented that the government’s decision to focus on direct financial aid is a “turning point” for crisis support in England. He explained that this approach allows recipients to use the funds where they need them most, whether it’s for food, bills, or emergency accommodation, providing people with the choice and dignity to address their own specific circumstances.
The idea behind the CRF is not just to provide immediate relief, but to build longer-term resilience in households. By offering direct cash payments, the government intends to help people regain control of their financial situations, allowing them to make decisions that best suit their needs during times of crisis. The initiative also replaces previous support measures, such as the Household Support Fund (HSF) and the Discretionary Housing Payment, which have had limited scopes in the past.
Direct Support and Data-Driven Decisions
The trial of the Crisis and Resilience Fund in Plymouth provides a glimpse into how the programme will operate on a larger scale. In the pilot, 94 households received targeted support, unlocking around £125,000 in potential annual income through direct awards. The pilot also saw a marked increase in community engagement, with a 67 per cent rise in participation among older residents.
A key feature of the new system is the use of data to better understand the needs of individuals and tailor support accordingly. Rather than relying on rigid processes, the CRF allows for a more flexible, person-centred approach. According to the DWP, this will help ensure that the right resources reach the people who need them most, when they need them.
The DWP has also stressed the importance of working closely with local councils and community organisations to ensure that funds are distributed effectively. Through partnerships with trusted local groups, the government aims to reach individuals in places they feel comfortable and safe, which could lead to more effective outcomes for those in need.
