Croydon Council has approved a £19.7 million fund to support residents facing financial hardship and to build long-term resilience.
The Crisis and Resilience Fund (CRF), allocated by the Department for Work and Pensions, will be distributed over three years from April 2026 to March 2029.
The fund aims to provide immediate crisis support while also investing in preventative measures to address the underlying causes of financial hardship and reduce repeat demand for assistance. The anticipated impact of the fund is to reduce repeat demand for crisis support by addressing these underlying causes and building financial resilience. This will be achieved through a combination of immediate crisis support and access to longer-term resilience-building interventions such as welfare advice, debt advice, employment support, and income maximisation services. Residents receiving repeated assistance will be expected to engage with recommended resilience interventions. Progress will be monitored through the Department for Work and Pensions reporting framework and local performance measures, including indicators relating to repeat demand for crisis support.
In the first year, £5,220,002.99 will be allocated to support residents with essential costs such as food, fuel, and white goods. Eligibility for these Crisis Payments requires applicants to be aged 18 or over, resident in Croydon, experiencing financial hardship, have suffered a financial shock or unexpected expense or sudden reduction in income, and demonstrate that they do not have sufficient resources available to resolve the crisis themselves. Receipt of benefits is not a requirement for support. Support may include food assistance, energy costs, water charges, energy top-ups, essential household items, white goods, and other emergency costs considered necessary by the Council. Typical maximum awards are up to £500 for food, up to £200 for fuel and utility costs, and up to £350 for essential household appliances. Repeat applications are only considered in limited circumstances, such as a change in household composition, securing new accommodation, a significant change in health or caring responsibilities, or a further financial shock or exceptional hardship.
This includes £400,000 ringfenced for referrals from schools to assist families with children. An allocation of £366,000 is proposed for discretionary funding for schools to strengthen early intervention and reduce hardship among vulnerable pupils. This allocation will be apportioned based on the number of pupils receiving free school meals and will support essential items such as school uniforms, warm clothing, and other immediate needs for vulnerable pupils. Schools are seen as being in a position to identify families in crisis and address emerging concerns quickly, enabling a flexible and direct response to need, thereby reducing financial strain on low-income households and preventing escalation to statutory services.
Additionally, the fund will support housing stability through payments for rent shortfalls, arrears, deposits, and moving costs, with £1.24 million allocated for this purpose. A significant portion of the fund, £2.03 million, will be dedicated to resilience-building initiatives, including enhanced advice services, debt support, and employment assistance. The enhanced Citizens Advice contract, costing £487,500 over 18 months, will provide integrated triage, advice, and casework support for residents experiencing financial hardship. This includes accredited advice on welfare benefits, debt, and housing, along with proactive casework for complex needs. The service will also incorporate outreach in community settings, coordination of a local advice network, and training for frontline partners. The expected outcomes are to address the underlying drivers of financial hardship, reduce repeat demand for crisis support, and maximize household income, leading to longer-term financial stability.
Years two and three of the programme will focus on expanding preventative interventions and strengthening the role of the voluntary, community, and faith sector in addressing the root causes of financial hardship. While specific interventions for years two and three are not detailed, the overall approach will be informed by Year 1 performance, outcomes, emerging demand, and resident need. Performance will be reported through the Council's existing performance monitoring and governance arrangements.
Councillor Lynne Hale, Cabinet Member for Homes and Deputy Mayor, stated that the fund aims to provide a vital safety net while helping residents build the stability and resilience they need for the future. The council will also continue to advocate for national reforms to the housing benefit subsidy system and increased investment in affordable housing. Croydon Council's Temporary Accommodation Strategy 2026-2030 includes a priority to 'Increase housing supply and accelerate pathways into settled housing'. Specific actions include: reviewing Housing Association nomination agreements, continuing the Annual Lettings Plan, strengthening Private Rented Sector (PRS) partnerships, delivering targeted acquisitions and leasing initiatives, improving move-on arrangements, expanding specialist housing pathways for care leavers and vulnerable households, and maximising the use of social housing. The Council will also explore conversion of short-term leases into longer-term arrangements and undertake a strategic assessment of the optimum balance of owned, leased, or controlled accommodation. While the strategy mentions exploring direct acquisitions and leasing initiatives, it does not specify concrete actions beyond these general areas for increasing affordable housing investment.
The Crisis and Resilience Fund will involve more formalised engagement with the voluntary, community, and faith sector (VCFS) in years two and three to co-design and, where appropriate, commission services aimed at addressing the underlying causes of financial hardship. In Year 1, funding is allocated to Citizens Advice Croydon for advice and casework, and to schools for discretionary funding. The programme also includes a pilot for 'Family Help in a Family' engaging VCFS practitioners. The overall approach aims to improve access to advice and wider services through strengthened partnerships between the Council, schools, VCFS organisations, and other agencies.
More information can be found in the Public reports pack for the Cabinet meeting.
