Government to give cash payouts to people in financial crisis

"The government is to roll out a new £1bn-a-year support scheme designed to give people on low incomes direct access to emergency cash when they face sudden financial shocks. The Crisis and Resilience Fund, which launches in April, will run for an initial three years and replace the temporary Household Support Fund that has been extended repeatedly since its introduction during the pandemic in 2021."

"Under the new scheme, individuals will be able to apply for emergency payments through their local council, regardless of whether they are in receipt of benefits. Councils will be able to award cash support in cases such as a sudden loss of income, redundancy, an unexpected bill like a broken boiler, or where early intervention could prevent someone from falling into deeper financial crisis."

"The fund represents a shift in how crisis support is delivered. Unlike previous schemes that relied heavily on vouchers, food parcels or referrals to food banks, councils will now be explicitly encouraged to provide cash payments. Ministers hope this will help meet a manifesto pledge to reduce what they describe as "mass reliance on emergency food parcels" by giving households greater flexibility and dignity in how support is used."

A new £1bn-a-year Crisis and Resilience Fund will launch in April and run for three years, replacing the temporary Household Support Fund from the pandemic. Individuals can apply to local councils for emergency cash regardless of benefit receipt, covering sudden income loss, redundancy, unexpected bills, or early intervention to prevent deeper crisis. Councils are encouraged to provide cash payments instead of vouchers, food parcels or food bank referrals to increase flexibility and dignity. Funding can be used for immediate crisis payments, housing-related shortfalls, and longer-term resilience services, though some councils warn funding may not meet growing local need.

Read at Business Matters