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Starting in April, a new financial support program will offer emergency funding to low-income individuals across England. Named the Crisis and Resilience Fund, this initiative will allocate £1 billion each year over the next three years. Eligible applicants can seek assistance through their local councils regardless of whether they currently receive benefits. The program is designed to help those facing sudden financial difficulties, such as a broken boiler, unexpected job loss, or other urgent expenses, aiming to prevent people from slipping into crisis.
This funding scheme replaces the Household Support Fund, which had been operating on a temporary and rolling basis since 2021 but was set to conclude at the end of March. Although the funding amount remains similar to the previous scheme, some local councils have expressed disappointment, feeling the allocation may not be sufficient to address the growing welfare demands. According to a recent survey by the Local Government Association, the majority of councils anticipate that current funding levels will not adequately meet local welfare needs. A key difference in the new approach is the emphasis on providing direct cash payments rather than relying on food parcels, aligning with a government pledge to reduce dependence on emergency food aid.
The Crisis and Resilience Fund’s guaranteed three-year duration allows councils to plan their welfare schemes with more stability. Emma Revie, co-chief executive of the Trussell Trust—an organization supporting food banks—acknowledged the importance of this fund, stating, “The new Crisis and Resilience Fund is a vital step towards ensuring no-one is forced to turn to a food bank to get by.” The Department for Work and Pensions has issued guidance explaining that the funds can be used for three key purposes: crisis payments, housing-related payments for unexpected shortfalls, and resilience services that support frontline charities and local organizations.
Barnardo’s charity has welcomed the shift from vouchers, food bank referrals, and emergency parcels to cash payments, seeing this as a way to enhance the dignity and choice of people relying on such support. Some councils have already adopted a “cash-first” approach, delivering funds via Post Office cash vouchers or digital platforms like Pay-By-Text, which enable direct withdrawals from cash machines. Lynn Perry, Barnardo’s chief executive, emphasized the importance of this funding model, saying it “has the potential to make a meaningful difference to children growing up in poverty.” While Scotland, Wales, and Northern Ireland will receive a proportional amount of funding, it will be their decision on how to allocate it. English local authorities must publish their plans for the fund and open applications to the public by April 1. Minister for Employment Dame Diana Johnson noted, “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.
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