Overview
- From 1 April, councils will administer a guaranteed £1bn a year for at least three years, replacing the short‑term Household Support Fund.
- The scheme has three strands: crisis payments, housing payments, and resilience services for frontline charities and community organisations, with councils deciding how to split allocations.
- Crisis payments are cash‑first and open beyond benefit recipients, intended for sudden financial shocks, with urgent cases expected to be processed within 48 hours.
- Housing payments replace Discretionary Housing Payments, cover rent shortfalls, deposits and moving costs, are limited to claimants on housing benefit or Universal Credit with the housing element, and can be paid regularly.
- Charities including the Trussell Trust, Barnardo’s and StepChange welcomed the cash approach, while the LGA reported most councils doubt the funding will meet need; in England, councils must publish plans and open applications by 1 April, with devolved governments receiving a proportionate share.