Merton Council has launched a £2.2 million fund aimed at boosting the financial resilience of its residents. The Crisis and Resilience Fund (CRF), a new three-year programme running from April 2026 to March 2029, will replace the Household Support Fund and Discretionary Housing Payments, with a focus on building longer-term financial stability.

The council's confirmed Year 1 allocation for the CRF is £2,258,442, with £482,153 ringfenced for housing payments. Early proposals of £563,458 were agreed in March 2026 for April to September 2026 to ensure a smooth transition from the Household Support Fund (HSF). The fund will support a range of initiatives, including continuing Free School Meal holiday vouchers for Summer 2026, enhancing the Crisis Payments model delivered by Wimbledon Guild, and funding various evidence-based resilience interventions.

A strategic shift away from universal provision of holiday vouchers towards more targeted support for families facing the greatest hardship is a key aspect of the new fund. Merton's investment in the Low-Income Family Tracker (LIFT) and the emerging Child Poverty Strategy provide the data and strategic direction to target CRF funding at residents who need it most. LIFT data indicates a minimum of 484 children in 244 households in Merton living in food poverty, a smaller and more specific group than the full voucher cohort.

The CRF aims to move beyond reactive crisis support and invest in building residents' financial resilience, thereby reducing long-term dependency on emergency provision. This aligns with central government's directive for local authorities to support residents facing financial hardship.

Key proposals for the CRF include continuing and expanding Holiday Activities and Food (HAF) provision, a ringfenced discretionary crisis fund for families with children, and crisis payments available as a safety net for households facing immediate hardship. The discretionary crisis fund will be available for immediate hardship, including food, household bills, the cost of replacing essential household appliances, and buying school uniforms. Fuel vouchers will also be provided by Thinking Works, integrated with energy advice.

The 'enhanced Crisis Payments model', delivered by Wimbledon Guild from 1 October 2026, aims to improve efficiency in processing grants and establish clearer pathways into wider resilience services. Wimbledon Guild has a strong track record of delivering services to vulnerable communities and successfully ran a grants scheme under the Household Support Fund since October 2021. The enhanced model will include warm referrals to wider resilience services .

Beyond immediate crisis support, the CRF will invest in practical interventions designed to build long-term financial resilience. These evidence-based interventions are expected to achieve outcomes such as reduced experiences of material deprivation, decreased need for emergency food parcels and crisis payments, increased access to quality advice services, higher savings, and a reduction in priority debt. Interventions include benefit maximisation (e.g., Healthy Start Vouchers, Disability Benefits, Universal Credit), employment support, building financial literacy and confidence, increasing household savings, enabling access to affordable credit, financial advice and guidance (particularly debt management), and help with core and volatile bills.

The CRF framework places a strong emphasis on outcomes, requiring the Council to demonstrate impact against measures including reduced experiences of material deprivation, lower reliance on emergency support, improved access to advice, increased income and savings, and reduced need for future crisis payments. Proportionate evaluation activity, including follow-up with recipients, will be embedded to build the evidence base and inform future delivery. The LIFT tool will be central to delivery in Years 2 and 3, enabling the Council to identify need across the borough, run proactive benefit take-up campaigns, and tailor outreach to the cohorts most likely to engage.

Merton Council will implement a communications plan for schools and families to explain the changes regarding Free School Meal holiday vouchers and alternative support. A no wrong door approach with strong referral pathways for integrated support will be adopted. The LIFT tool will also be used to proactively identify and reach eligible residents who are not claiming benefits.

More information on the fund can be found in the Public reports pack for the Cabinet meeting on Monday 13 July 2026.