Labour Government Replaces Household Support Fund with Crisis and Resilience Fund

Labour Government Replaces Household Support Fund with Crisis and Resilience Fund

Reform UK Controlled Lancashire County Council Assigns Lead Role to Districts

The national Labour Government has decided to replace the previous Household Support Fund with the new Crisis and Resilience Fund from 1 April 2026. Reform UK controlled Lancashire County Council has passed over £17.2 million, plus a £0.455 million heating oil top-up, to district councils across the county.

These districts have been formally assigned the lead role in deciding how the money is distributed locally. This gives Burnley, Chorley, Fylde, Hyndburn, Lancaster, Pendle, Preston, Ribble Valley, Rossendale, South Ribble and West Lancashire the power to tailor support to the real needs in their own communities, marking a shift towards more localised decision-making.

The new fund delivers cash-first crisis payments for households facing sudden financial shocks, covering food, energy and essential costs. It also establishes Resilience Hubs in every district, providing year-round practical help such as budgeting and debt advice, digital skills support, employment pathways and community connections. The approach is designed to focus on prevention and reduce repeat financial crises.

The previous system of automatic holiday food vouchers has now ended. This change is not a local decision. Department for Work and Pensions guidance does not permit the Crisis and Resilience Fund to be used for blanket holiday vouchers for all free school meal families. Instead, funding has been redirected into needs-tested crisis payments aimed at those facing immediate hardship.

Any free school meal vouchers currently being issued by Lancashire County Council are residual from the previous Household Support Fund scheme. Under the new framework, councils are expected to prioritise targeted support rather than universal provision.

At district level, approaches may vary. Burnley Borough Council, for example, has opted to include food parcels within its local allocation, alongside emergency assistance with essentials, housing-related support and targeted help for vulnerable households.

Despite calls from Burnley Labour MP Oliver Ryan in his Burnley Express column on 2 April 2026 for the return of universal holiday food vouchers, there will be no change to the current approach. Lancashire County Council has confirmed it will implement the new fund in line with Department for Work and Pensions guidance, focusing support on those most in need during holiday periods.

Reform UK maintains that support should be targeted, practical and sustainable, rather than relying on one-size-fits-all measures. By assigning responsibility to district councils, decisions can be made closer to the communities affected, allowing for more responsive and tailored support.

Residents facing genuine hardship are encouraged to contact their district council or visit a local Resilience Hub to access support. The new system aims to provide help that is timely, targeted and focused on those who need it most.