Date two new DWP payments will launch this year

The payments are designed to help thousands of households

The Department for Work and Pensions will launch a new scheme later this year. It will consist of cash payments, rent support, food vouchers and more. The new payments introduced by the financial department on April 1 are the Crisis Payment and the Housing Payment. Each will serve different purposes and have different eligibility criteria.

The government has pledged £1bn each year for at least three years to local authorities through the new fund. It will replace the existing Household Support Fund. A government spokesperson said: “We’re committed to tackling poverty and delivering more security and opportunity for families across the UK.

“The £1bn multi-year Crisis and Resilience fund will help prevent households from falling into crisis by giving local authorities the certainty they need to provide emergency financial support.”

DWP said the new Crisis Payment is designed to offer payments to “individuals in crisis” and councils will have discretion over the exact eligibility criteria. The government said it should not be limited just to those in receipt of benefits.

The new payment will help households that have experienced a financial shock, or are at risk of entering crisis. The DWP explained: “A financial shock is a sudden, unexpected expense or drop in income, that can place pressure on their budget and wellbeing.”

The new payment can be used to “prevent” individuals from entering crisis. It is aimed at providing timely support so that people can manage pressures, maintain control and avoid being pushed into crisis or prevent crises from escalating.

Authorities should consider a crisis as a circumstance of “pressing need” which requires immediate action to prevent or remedy negative outcomes.

This could include 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. Government guidance states that in all Crisis Payment scheme cases, frontline staff should assess people’s circumstances to identify their preferences, symptoms and underlying needs.

The new Housing Payment will aim at providing financial support towards housing costs for those in need. It will replace the discretionary housing payment for claimants.

This payment will usually be related to rent, such as needing rent in advance, a rental deposit, or shortfall. It could also cover a lump sum associated with housing, like the cost of moving.

Unlike the Crisis Payment, the Housing Payment will be restricted to those in receipt of certain benefits. These are either Housing Benefit, or Universal Credit with the housing element for rental costs. DWP said those who do not qualify but are still in need could be considered for a Crisis Payment instead.

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