The federal government is to roll out a brand new £1bn-a-year help scheme designed to present individuals on low incomes direct entry to emergency money once they face sudden monetary shocks.
The Disaster and Resilience Fund, which launches in April, will run for an preliminary three years and exchange the momentary Family Assist Fund that has been prolonged repeatedly since its introduction throughout the pandemic in 2021.
Beneath the brand new scheme, people will be capable to apply for emergency funds by way of their native council, no matter whether or not they’re in receipt of advantages. Councils will be capable to award money help in instances reminiscent of a sudden lack of earnings, redundancy, an surprising invoice like a damaged boiler, or the place early intervention may forestall somebody from falling into deeper monetary disaster.
The fund represents a shift in how disaster help is delivered. In contrast to earlier schemes that relied closely on vouchers, meals parcels or referrals to meals banks, councils will now be explicitly inspired to supply money funds. Ministers hope this may assist meet a manifesto pledge to cut back what they describe as “mass reliance on emergency meals parcels” by giving households larger flexibility and dignity in how help is used.
The Division for Work and Pensions has set out steerage permitting councils to make use of the funding in three broad areas: instant disaster funds, housing-related help the place there’s a sudden shortfall, and longer-term resilience providers, together with funding for charities and native organisations that present frontline help.
Though the general degree of funding broadly matches the earlier Family Assist Fund, some councils have expressed concern that it’ll not be sufficient to fulfill rising demand. A current survey by the Native Authorities Affiliation discovered most councils in England don’t imagine present funding ranges are adequate to cowl native welfare wants, significantly as cost-of-living pressures persist.
Nonetheless, the dedication to supply assured funding for not less than three years has been welcomed by native authorities and charities, because it permits councils to plan their help programmes extra successfully somewhat than counting on short-term extensions.
Emma Revie, co-chief govt of Trussell Belief, mentioned the brand new fund marked an necessary step ahead. She mentioned it may assist guarantee fewer persons are compelled to depend on meals banks merely to get by.
Kids’s charity Barnardo’s additionally welcomed the transfer in the direction of cash-first help. It mentioned enabling councils to supply direct funds, somewhat than vouchers or parcels, would give households larger company and selection at occasions of disaster.
Some councils are already utilizing related approaches, distributing funds through Put up Workplace money vouchers or digital “pay-by-text” methods that enable individuals to withdraw cash from money machines shortly.
The brand new steerage offers councils flexibility in how they divide funding between disaster funds, housing help and resilience providers, however they are going to be required to publish how the cash will probably be used and open purposes to the general public by 1 April.
Equal funding will probably be allotted to Scotland, Wales and Northern Eire, with devolved administrations free to determine how the cash is spent in their very own areas.
Minister for Employment Dame Diana Johnson mentioned the fund would give councils the understanding they should intervene early and stop households from being pushed into disaster. She mentioned the purpose was to supply quick, sensible assist on the level individuals want it most.
