Barking and Dagenham Council has launched a new £4.8 million fund to provide a crucial safety net for low-income households facing financial hardship. The Crisis and Resilience Fund (CRF) will replace the Household Support Fund and Discretionary Housing Payment schemes, offering a more integrated approach to crisis support and financial resilience.
The fund aims to provide immediate assistance for households experiencing financial shocks, while also investing in building long-term financial resilience within the community. This includes crisis payments, support for housing costs, and funding for services that promote financial capability, such as debt advice and income maximisation. The CRF guarantees funding for a three-year cycle from 2026 to 2029. Barking and Dagenham has been allocated £4.8 million for the 2026/27 financial year, with £727,763 specifically designated for housing payments.
Eligibility and Support Offered
Eligibility for the Crisis and Resilience Fund (CRF) extends beyond just low-income households facing hardship. It also includes those who have experienced a financial shock or are at risk of crisis, and individuals who need support to build longer-term financial resilience. The fund specifically targets recipients of Housing Benefit/Universal Credit for housing costs, with limited exceptions for those with No Recourse to Public Funds. The fund will support households with housing costs (CRF Housing Payment), Council Tax payments (via the Discretionary Council Tax Relief scheme), the cost of living including food and energy costs, utility arrears, and essential household items.
'Cash-First' Approach and Application Process
The Council is adopting a 'cash-first' approach for crisis payments, which is described as flexible and tailored to individual needs. This means that while cash payments are the primary method, vouchers or goods in-kind may be provided depending on the household's circumstances. Applications for both the CRF and the Discretionary Council Tax Relief (DCTR) scheme are to be made electronically via the Council's website, with paper forms not accepted. For residents facing digital exclusion or other barriers, the Council or a third-party partner will offer support to complete the application form, either face-to-face or via telephone.
Supporting documentation is crucial for all applications. This includes two months' bank statements from all accounts. Additional evidence may be required for specific needs, such as proof of utility bill arrears, photographic evidence of damaged or missing essential furniture and appliances for 'move-in packs', evidence of rent arrears, or proof of required rent deposits and advance payments. Failure to upload the necessary evidence will result in automatic refusal. Applicants will be given seven days to provide any further requested evidence.
Transition and Long-Term Resilience
The Crisis and Resilience Fund (CRF) will replace the Household Support Fund (HSF) and Discretionary Housing Payment (DHP) schemes from 1 April 2026. The administration of the CRF is expected to closely replicate that of the HSF, with no significant changes anticipated for DHP processes, suggesting a smooth transition with minimal disruption.
The CRF also aims to build long-term financial resilience through 'Resilience Services', which encompass debt advice, income maximisation, budgeting, and financial capability training. Expected outcomes include reduced material deprivation, decreased reliance on food banks, increased access to advice services, higher savings, reduction in priority debt, maximised incomes, and a decreased need for crisis support. These outcomes will be monitored and reported to the Department for Work and Pensions (DWP) every six months.
'Move-in Packs' and Coordinated Support
For households moving into unfurnished properties, the CRF offers a 'Move-in Pack' to cover essential furniture and appliances like fridges, washing machines, ovens, and beds. This funding is specifically for new essential items and not for replacements. Contributions are capped at £1,250 for households without children and £1,500 for households with children. Items may be purchased directly by the Council or paid via BACS, with receipts required for verification.
The fund also aims to coordinate local welfare support by connecting statutory services, voluntary organisations, and grassroots projects. This 'joined-up approach' will be overseen by an Anti-poverty change of foundations board, which will provide strategic direction and share CRF funding opportunities with local organisations and partners. This initiative builds upon existing efforts using HSF funding.
Councillor Saima Ashraf, Deputy Leader and Cabinet Member for Community Leadership & Engagement, expressed her support, stating, I'm really pleased and grateful that we are able to do this and are fully in support of this report.
She emphasised the importance of involving the voluntary sector and neighbourhood programs in service delivery.
Councillor Dominic Twomey, Leader of the Council, highlighted the critical role of these measures in the current economic climate, noting that many households in the borough already with low incomes, reliance on welfare assistance and crisis support has continued to increase to become an important lifeline for many households.
In addition to the CRF, the Council will continue its Discretionary Council Tax Relief (DCTR) scheme with £500,000 from the council and £200,000 from the Greater London Authority, to support residents facing exceptional hardship with their Council Tax bills.
