DWP scheme hands free cash payments to households for ‘any good reason’ from April | Personal Finance | Finance

Households across the UK could be given cash handouts starting in April after a new emergency cash fund was announced by government this week, with payments being given out for any good reason to help in a crisis.

The Crisis and Resilience Fund (CRF) will be given out by local councils from April 1, 2026 right up until March 2029, including funding for housing support. The DWP scheme aims to provide a «safety net for those on low incomes» and to build «financial resilience» for personal finance emergencies.

As well as financial education, literacy and debt management information, the scheme will offer direct cash payments to those in need and will be available all year round.

The DWP said there is «no prescriptive list» of eligible reasons to get a payment, and it requires a «person centred, needs based» approach and that a crisis could be sparked by something as small as a bus timetable change.

The DWP explained: “Each Unitary Authority and County Council must deliver a CRF Crisis Payment scheme that offers payments to individuals in crisis. 

“Authorities must name their schemes as ‘Crisis Payment’. Authorities should allocate their budgets accordingly to aim for Crisis Payments to be available all-year round. 

“Crisis Payment schemes will be cash-first and operated primarily on an application-basis. Authorities must adopt a needs-based approach that seeks to address underlying needs alongside provision of immediate support.”

It adds that the money should be made available for «occasional short term needs» and not as a regular income source.

The DWP continued: “Authorities must use the CRF to offer support to low-income households to: individuals who have experienced financial shock. A financial shock is a sudden, unexpected expense or drop in income, that can place pressure on their budget and wellbeing, or prevent individuals from entering crisis. Providing timely support so that people can manage pressures, maintain control and avoid being pushed into crisis or prevent crises from escalating.

“In deciding whether to award a Crisis Payment, Authorities should consider a crisis as a circumstance of pressing need which requires immediate action to prevent or remedy negative outcomes. This could include, but is not limited to, people going without material essentials such as food, shelter, heating, essential items such as furniture and appliances or services such as water or energy. The cause or preventability of the crisis is not considered a relevant factor.

“A financial shock, such as a car or household appliance breaking down, a bus route being cut or an unexpected bill, can be the tipping point that leaves a household in crisis. Well-timed and effective crisis support, delivered through a cash-first approach, can prevent a financial shock creating or escalating a crisis.”