Labour Government Unveils Major £1 Billion Crisis Support Fund
The Department for Work and Pensions has announced a groundbreaking new initiative to support UK households struggling with the cost of living. The Labour Party government is launching a £1 billion Crisis and Resilience Fund, described as the most significant investment in local crisis support in a generation.
Multi-Year Settlement for Financial Security
This fund represents a fundamental shift in how crisis support is delivered across the United Kingdom. For the first time, a multi-year settlement will be in place for crisis support, replacing the previous annual cliff-edge funding cycle that created uncertainty for local councils.
The new approach provides long-term certainty that enables councils to plan ahead effectively and deliver lasting change for communities. The streamlined grant combines what was previously the Household Support Fund with Discretionary Housing Payments into a single, more efficient system.
Cash-First Approach to Poverty Support
At the heart of this initiative is a "cash-first" approach to poverty support. The newly published guidance outlines how effective crisis support will be delivered through prioritised cash payments, giving families choice and dignity while helping them build financial resilience.
Minister for Employment Dame Diana Johnson emphasized the importance of this proactive approach, stating: "Families deserve support before a crisis hits, not after. By scrapping the two-child limit and launching a £1 billion Crisis and Resilience Fund, we're giving councils the tools to help families build real financial security."
Impact on Children and Communities
The minister highlighted the significant impact of growing up in poverty on health, education, and employment outcomes. "Lifting 550,000 children out of these circumstances isn't just about fairness today, it's about building a stronger Britain for the future," Johnson added.
Sabine Goodwin, Director of the Independent Food Aid Network, welcomed the announcement, calling the fund "groundbreaking for households living on low incomes in English local authorities."
Goodwin explained: "Taking a cash-first approach to poverty, this multi-year funding pot has the capacity to reduce the number of people having to turn to charitable food providers and to help fulfil the Government's commitment to end mass dependence on emergency food parcels."
Building Financial Resilience
The Crisis and Resilience Fund aims to create a genuine safety net for families facing financial hardship. Beyond immediate cash payments, the program emphasizes bolstered community support to help residents build lasting financial resilience.
This comprehensive approach marks a significant departure from previous crisis support systems and represents what the government describes as a transformative investment in the wellbeing of UK households during challenging economic times.
