Government to give cash payouts to people in financial crisis

"A new funding scheme will give access to emergency cash for people on low incomes across England. The Crisis and Resilience Fund beginning at the start of April will provide 1bn annually for the next three years. People will be able to apply for emergency funds through their local council, whether or not they currently receive benefits. The new rules say councils can give money to people in financial shock where there is "a sudden, unexpected expense or drop in income"."

"The cash element is a significant change to the past scheme, which the government hopes will help fulfil a manifesto pledge to end "mass reliance on emergency food parcels". It means councils can give those experiencing difficulties direct access to cash in the hopes of removing the need for hand-out provisions. The guarantee of at least three years of funding mean councils can plan their support schemes and provision over a longer period."

The Crisis and Resilience Fund will provide £1bn annually for three years to enable councils to offer emergency cash to people on low incomes. People can apply through local councils whether or not they receive benefits. Councils can use the money for crisis payments, housing payments for unexpected shortfalls, and resilience measures to prevent future crises. The scheme replaces the Household Support Fund, maintaining similar funding levels and offering a guaranteed three-year settlement for planning. Some councils say funding remains insufficient. The fund’s cash element aims to reduce reliance on food parcels by giving direct access to cash.

Read at www.bbc.com