The UK government has just confirmed the launch of the new £80m Crisis and Resilience Fund, scheduled to start in April. This first-of-its-kind initiative will provide £1 billion per year for the next three years to help low-income families manage their energy costs. The fund gives local authorities the independence and information to be truly autonomous. This allows them to develop efficient models of assistance and avoid families needing to enter crisis mode.
Dame Diana Johnson, former Minister for Employment, made the case that this investment is crucial. “Thanks to this £1bn fund local authorities will have the certainty to provide emergency support and stop families falling into crisis in the first place,” she stated. The program could not be more timely, as millions of households are being pinched by escalating costs of living.
Local councils in England will have to publish their plans detailing how they plan to use the fund. We will open applications for public support starting April 1. This new approach goes further than just England. Scotland, Wales and Northern Ireland will get their fair share of the cash too, putting more power in the hands of their local authorities to determine how to spend these much-needed funds.
Emma Revie, co-chief executive at the Trussell Trust, a charity that supports food banks, expressed optimism about the potential impact of the fund. She noted that “this guidance sets out how crisis support can be delivered in a way that protects dignity, offers real choice and reaches those who need it most.” Revie envisions the fund as a powerful tool to help create a world where children growing up in poverty are able to realize their full potential. “It has the potential to make a meaningful difference to children growing up in poverty,” she added.
The Crisis and Resilience Fund incentivizes councils to invest in a cash-first approach to providing aid to constituents. Many agencies have begun to utilize this approach. It allows people to draw down money via Post Office cash vouchers or Pay-By-Text systems. These platforms allow individuals to access cash through ATMs or merchant locations, which can deliver instant financial relief.
The three-year guaranteed funding offers local authorities greater stability as well as a chance to establish long-term support infrastructures. This more formal approach is designed to increase the impact of assistance programs in emergencies nationwide.
