The UK’s Department for Work and Pensions (DWP) has unveiled two new cost of living support payments to be launched in April 2026. Unlike previous schemes, these will not require recipients to be claiming benefits, in a shift aimed at supporting a broader range of financially vulnerable households.
The funding will form part of a new £1 billion Crisis and Resilience Fund, a multi-year initiative designed to provide more stable and tailored support for people facing financial hardship. It replaces the short-term Household Support Fund, and gives local councils authority to allocate the money based on their assessment of local needs.
Crisis Payment for Emergency Support Needs
The first of the two announced measures is a crisis payment, intended for individuals facing immediate financial emergencies. Local authorities will manage these funds directly, with discretion to set their own eligibility rules. According to Birmingham Live, the payment will not be limited to those receiving existing DWP benefits, broadening access to households previously excluded from direct support.
A government spokesperson stated that the fund is intended to prevent people “from falling into crisis by giving local authorities the certainty they need to provide emergency financial support.” The goal is to establish longer-term financial resilience by ensuring households can access timely aid before their situation worsens.
According to Sabine Goodwin, director of the Independent Food Aid Network (IFAN), the fund has the potential to “be transformative for local communities” and could significantly support the government’s objective to reduce dependence on emergency food parcels. Goodwin emphasised the importance of providing “cash payments alongside advice to maximise income” to prevent future crises.
This cash-first approach is expected to help reduce demand on food banks and charitable aid, as noted by Goodwin, who added that “far fewer people will have to turn to a food bank… and far more people will be able to build financial resilience.”
Housing Payment to Support Rent-Related Difficulties
The second measure involves a new housing payment aimed at individuals struggling to meet housing costs. This payment will replace the existing Discretionary Housing Payment from April 2026, again with local authorities overseeing its distribution.
Lucy Schonegevel, director of influencing at Action for Children, welcomed the initiative but noted that “millions of families across the UK are still struggling to afford the basics” despite recent steps in child poverty policy. She also highlighted that families who are not eligible for means-tested benefits are increasingly seeking emergency help due to rising living costs.
The updated housing payment scheme is designed to be more inclusive, potentially covering households that fall outside the conventional benefits system but are still experiencing significant financial stress. Government guidance emphasises that the housing support should not be limited solely to benefit recipients. Local authority teams are encouraged to ensure residents can “easily identify immediate cash-first crisis support” and access other entitlements when necessary.
Both support streams under the Crisis and Resilience Fund will be administered by local councils, giving them more flexibility and accountability in responding to their communities’ needs. This marks a move away from nationally set criteria, in favour of localised, needs-based interventions.
