England will launch a new £1 billion emergency cash fund in April. The Crisis and Resilience Fund will offer financial aid to low-income individuals. People facing unexpected financial shocks can apply through their local council. The fund replaces the Household Support Fund, which expires at the end of March.
The scheme provides £1 billion annually for three years. Councils can distribute funds to those experiencing sudden income loss or unexpected expenses. Job loss or a broken boiler are examples of qualifying events. The goal is to prevent individuals from entering a financial crisis.
The Local Government Association expressed concerns about funding levels. A recent survey indicated most councils believe the funding is insufficient. The cash element marks a significant change from the previous scheme.
The Household Support Fund was established in 2021 and repeatedly extended. The new fund aims to provide a more permanent solution. Councils will now prepare to administer the new Crisis and Resilience Fund.
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