Issue details

Reason for the decision

To deploy the Crisis Resilience Fund (CRF) to provide crisis support to low-income households facing financial shocks, and to invest in services that build financial resilience and strengthen local support networks. The CRF consolidates funding for crisis response and resilience, succeeding the Household Support Fund (HSF).

Background

Within the Spending Review in June 2025, the Chancellor announced continued investment to support low income households with the introduction of the Crisis and Resilience Fund (CRF) made available to local authorities in England to support low-income households who encounter a financial shock and to support activity that builds individual and community financial resilience,prioritising resilience services to households that have experienced a financial shock.

The Department for Work and Pensions (DWP) is introducing the CRF replacing the Household Support Fund (HSF) and incorporatingDiscretionary Housing Payments (DHP). The fund provides KCC with a multiyear, consolidated grant, enabling a more stable and preventive approach to supporting vulnerable residents.

The funding covers the period of 1 April 2026 to 31 March 2029 inclusive. This includes specified funding for housing support in the third and final year of delivery. In Year 1 and Year 2, Authorities are expected to maintain existing levels of spending on Housing Payments, using the financial year ending March 2026 allocations for DHPs as a guide. From Year 3, District Councils will no longer receive an allocation for The Fund. Instead, all the CRF funding will be distributed to Unitary Authorities.

The fund provides a consolidated, multi-year revenue grant to local authorities. It comprises of four components:

Crisis Payments,

Housing Payments,

Resilience Services, and

Community Coordination.

To meet with grant conditions applications for Crisis and Housing Payments must be accepted year-round and via accessible routes (e.g., online, phone, face-to-face). Local authorities retain discretion to define ‘low-income’ locally and to design delivery within national parameters.

Options (other options considered but discarded)

-      Decline or defer acceptance of CRF – rejected due to loss of funding and inability to meet statutory and strategic objectives.

-      Limit scope to Crisis Payments only – rejected as it would not secure long-term resilience outcomes and would risk repeat demand, including demand on statutory services and would not meet all of the four objectives set out by the DWP.

-      Deliver wholly in-house without partners – rejected as it would constrain reach and capacity; partnership working is recommended in guidance.

Financial Implications

An Officer ROD Decision OD/26/00005 has been taken, under the original key decision (21/00107) to accept this multi-year consolidated revenue grant allocated to the Council through the Local Government Finance Settlement has been taken .  The officer decision is to accept the grant. This proposed decision is to approve the framework for deployment and delivery of the grant. Multi-year CRF allocation as detailed above and within the funds received via the consolidated revenue grant (Local Government Finance Settlement).

Funding will be managed through existing financial governance frameworks including: Delegated authority for timely spend and alignment with grant conditions

KCC’s confirmed allocation:

*£22.1m (which includes an estimated £2.8m for the consolidated contribution previously distributed to District Councils for Discretionary Housing Payments DHP)

Key changes (to HSF) and clarifications include:

·   Monthly payments to local authorities, with first payment due in April 2026, following acceptance of Officer ROD decision no: OD/26/00005

·      Housing Payment element replaces DHP within CRF scope.

·   Cash-first principle for Crisis Payments unless inappropriate (e.g., safeguarding, fraud risk). To ensure robustness to this advice, steps to enable residents to take more personal responsibility to help improve their own financial circumstances will be undertaken. This approach is designed to empower people to take charge of their own situation

·   This cash?first approach is the preferred option of the Department for Work and Pensions (DWP). However, local authorities have discretion to determine whether cash payments, vouchers, or alternative services are the most appropriate means of meeting an individual’s need.

·   Prohibition on blanket schemes targeted solely at free school meal eligible households; support must be needs-based.

Legal Implications

The Crisis and Resilience Fund is a ringfenced grant from the Department for Work [“DWP”] and Pensions replacing the Household Support Fund and Discretionary Housing Payments.

Funding must be used strictly in accordance with the scope of the guidance set by Government, and the terms and conditions of the grant. KCC will apply appropriate legal mechanisms as part of issuing or deploying any grant monies to ensure any partners or third parties in receipt of grant funding remain compliant.

-       Acceptance and deployment of CRF will be underpinned by the grant determination issued under Section 31 of the Local Government Act 2003 and associated guidance

-       Contractual arrangements may require procurement activity for voucher platforms or closed loop systems. Third Party Agreements, where funds may be distributed through partners, (e.g charities, voluntary sector) must be specific, legally binding and ensure compliance with the main DWP grant conditions.

-       Implementation requires robust data sharing agreements, particularly if working with third-party partners to distribute funds, ensuring compliance with GDPR

-       Robust, auditable evidence for all decisions on awards is required because KCC is accountable to the DWP.

Equalities implications

Projects undertaken using this funding will conduct a full EQIA, and equalities implications will be reviewed as work progresses.

-       An Equality Impact Assessment (EQIA) has been completed for the service. Current evidence suggests there is no negative impact, and this recommendation is an appropriate measure to advance equality and create stability for vulnerable people experiencing financial hardship.

-       Early consideration indicates potential positive impacts for low-income households; any risks will be mitigated through targeted design and accessible routes.

Data Protection implications

-       A Data Protection Impact Assessment (DPIA) is in progress, with the initial screening process which will inform the scope of the full assessment. All programme components involving the processing of personal data, including application platforms, data flows, and any data?sharing arrangements with delivery partners will undergo DPIA consideration. Where a full DPIA is required, it will be finalised prior to implementation of the relevant component. All processing activities will be undertaken in accordance with UK GDPR, the Data Protection Act 2018, and the Council’s Information Governance and Data Protection policies, with emerging requirements captured through ongoing governance and change?control processes.

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How does the proposed decision align to the Council’s; Strategic Statement:

Reforming Kent

CRF is effectively a delivery mechanism for several of the core ambitions in Reforming Kent. The alignment is evident in four main ways.

Reforming Kent focuses on helping residents in crisis whilst also delivering innovative cross-cutting projects across teams and organisations to reduce longer-term dependency and demand whilst improving outcomes by encouraging personal responsibility.

Prevention and demand reduction

Reforming Kent emphasises preventing problems before they escalate into high?cost statutory interventions. CRF explicitly aims to reduce crisis escalation, homelessness, and repeat emergency demand by intervening earlier and more holistically through resilience provision.

Targeting inequality and vulnerability

The strategic statement focuses on narrowing inequalities and protecting the most vulnerable. CRF is explicitly needs?based, targeted at low?income households experiencing financial shocks, and designed to improve fair access to support across the county.

Community?based, joined?up delivery

Reforming Kent stresses stronger local partnerships and community resilience. CRF supports  community coordination, referral pathways, hubs, and digital tools that create a more connected local welfare landscape, rather than fragmented crisis responses.

Administering schemes across all of Kent whilst building in the ability to utilise some of the funding for smaller, more bespoke projects tailored to the diverse needs of different localities be they urban, coastal or rural, more deprived or more affluent. This includes providing sensitive budgeting support, such as helping households review and audit discretionary (nonessential) expenditure when money is tight, to ensure essential needs are prioritised without judgement. 

Best value and financial sustainability

The strategic statement prioritises best value and long?term financial sustainability. CRF is framed as supporting this by reducing reliance on high?cost interventions, embedding governance arrangements, and aligning with existing financial oversight models.

How this is being used internally

The link between Reforming Kent and CRF is already being applied in practice:

CRF documentation explicitly references alignment with KCC Business Plan priorities and Corporate Equality Objectives, which sit under the Reforming Kent umbrella.

Discussion forums and meetings (for example CRF and CRF District Meeting Catch Ups) are focused on how CRF delivery models support longer?term reform rather than shorter term solutions.