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Millions of households will soon be able to benefit from cash payments, rent support, food stamps and more under a new scheme to be implemented. Sponsored by the Department for Work and Pensions (DWP).
From April, parliament will be able to administer Labour’s new Crisis and Recovery Fund, which is designed to support low-income households during times of financial hardship. Providing necessities has become difficult.
This is a situation faced by many people, recent research from the Trussell Trust found 14 million adults face food shortages Because they can’t afford it. At the same time, high household bills mean many people are finding it difficult to balance their finances.
The Government has pledged to provide £1 billion a year to local authorities for at least three years through a new fund. It will replace the Family Support Fund, whose continuity and exact funding was previously confirmed annually.
In response to the funding, the Local Government Association welcomed the long-term commitment, but Tell independent October Many councils feel it does not meet local needs. While nearly two-thirds (63%) of respondents said this would help at least to a small extent, only 2% said it would help to a large extent.
Tuesday, Distributed Water Plan More information about the scheme revealed in guidance to parliament, what was confirmed family It is expected to take place across the UK in April.
As well as providing provision to support local support services, the fund will introduce two new payments: a crisis payment and a housing payment. They all serve different purposes and have different qualifications.
crisis payment
The DWP said the new “crisis payments” – as they will be known in the UK – are designed to provide payments to “individuals in crisis”.
As with the Family Support Fund, Parliament will continue to have discretion over the exact eligibility criteria. However, government guidance says it should not be limited to those on benefits.
The authorities will use crisis grants to support low-income households that have experienced financial shocks or are at risk of falling into crisis.
This could include people being without essentials such as food, shelter or heat, or items such as furniture and appliances. It covers a variety of reasons why this might happen, such as disaster, health problems, theft, leaving an abusive relationship, or a normal income gap.
The DWP is asking councils to adopt a “cash first” approach to crisis payments, meaning cash payments should be given unless there are legitimate reasons not to do so. This can be in the form of food stamps or direct provision of needed items.
The department added that crisis payments are designed to meet occasional or short-term needs and are not intended to supplement regular income.
Some local authorities will also use the funding to provide food vouchers to parents of children eligible for free school meals over the summer.
Barnardo’s chief executive Lynn Perry said: “We welcome the government’s guidance on the new Crisis and Recovery Fund. For too many families, an unexpected crisis could push them to the breaking point, leaving children at risk of going without food, warmth or other essentials.”
“This guidance sets out how to deliver crisis support in a way that protects dignity, provides real choice and reaches those who need it most. It has the potential to make a meaningful impact for children living in poverty.”
housing payment
The UK will also introduce a new “housing grant” designed to provide financial support for housing costs to those in need. It will replace applicants’ discretionary housing payments from April.
This is usually associated with rentsuch as requiring prepayment of rent, rent deposit or difference. It can also cover one-time housing-related costs, such as moving costs.
Unlike crisis benefit, housing benefit will be limited to those receiving certain benefits. These are either Housing Benefit or Universal Credit which covers the cost of renting your home. However, the DWP said those who are not eligible but are still in need may be considered for crisis payments.
It will also have a longer-term, more regular payment horizon. For example, people who are looking for work but are currently facing a rental shortfall can apply for regular housing payments until they are able to increase their income or find somewhere else to live.
A government spokesman said: “We are committed to tackling poverty and providing greater security and opportunity for families across the UK.
“The £1 billion multi-year Crisis and Recovery Fund will help prevent households from falling into crisis by providing local authorities with the certainty they need to deliver emergency financial support.”