Overview
- The Department for Work and Pensions published guidance confirming an April 1 start and a three-year commitment of £1 billion annually, administered by local authorities.
- The fund is split into crisis payments, housing payments, and resilience services for frontline organisations, with councils deciding how to allocate money between the strands.
- Crisis payments will follow a cash-first approach for people in sudden hardship and will not be restricted to benefit recipients, with local discretion over eligibility and use.
- Housing payments will replace Discretionary Housing Payments, limited to those on housing benefit or Universal Credit with a housing element, and can be offered on a longer-term or regular basis.
- Guidance expects urgent cases to be paid within 48 hours and requires councils in England to publish plans and open applications by April 1, as charities welcome the shift to direct cash while the LGA reports only 2% of councils expect funding to meet need.