Chancellor Rachel Reeves has confirmed the launch of a new spring cost-of-living payment scheme, with grants of up to £200 available for hard-up households from May. The new Crisis and Resilience Fund (CRF) will replace the outgoing Household Support Fund (HSF) and will be distributed through local authorities.
How the scheme works
Households in financial crisis will be able to apply for support via their local council website. While anyone can technically apply, councils will prioritise those most in need, including residents struggling with debt, food costs, or energy bills. Under the old HSF scheme, Birmingham City Council issued £200 grants to eligible residents.
What support is available
Grant amounts may vary across the country, and other forms of support could include food vouchers and council tax discounts. The Government has advised local authorities to adopt a cash-first approach, providing cash support as the default while allowing flexibility for alternative support based on individual needs.
Applicants may need to provide proof of earnings, benefits, or savings. The scheme comes amid rising living costs partly driven by the Iran war, which threatens to push up household expenses.
The Government stated: "Individuals will need crisis support for a variety of different reasons. This could be for the provision of food, utilities, household goods or other essentials. For this reason, authorities should adopt a cash-first approach to awarding crisis payments."
