Overview
- DWP guidance sets a 1 April 2026 start for a fund that guarantees £1 billion a year for at least three years to local authorities.
- Councils will run two schemes: a cash‑first crisis payment for short‑term emergencies that is not limited to benefit recipients, and a housing payment that replaces Discretionary Housing Payments.
- The housing payment targets costs such as rent shortfalls, deposits, rent in advance or moving expenses and will generally be limited to people on housing benefit or Universal Credit with a housing element.
- Local authorities will set detailed eligibility, operate both schemes year‑round and aim to issue emergency awards rapidly, with guidance calling for decisions within 48 hours in urgent cases.
- Charities welcome the stability and cash‑first approach, while the Local Government Association warns funding may fall short and raises concerns over transition risks and local variation, with DWP oversight and reporting built into the rollout.