The Local Government Association (LGA) conducted the survey to gather views from councils on the design of the new fund, which is set to replace the Household Support Fund (HSF) and Discretionary Housing Payments (DHP) from April 2026.
According to the findings, two-thirds of councils said financial hardship among households had increased over the past year and expected the situation to worsen. The multi-year CRF aims to combine emergency and preventative support to build financial resilience across communities.
Currently, the HSF provides funding that allows councils to support families facing immediate hardship with cash, vouchers, or in-kind aid, while the DHP helps struggling households cover housing costs.
More than two-thirds of councils expressed support for a fully funded statutory requirement for local advice provision, while nearly half of upper-tier councils said they already run additional local welfare schemes.
While local authorities recognised the potential benefits of merging the funds and welcomed the government’s commitment to long-term funding, concerns remain about the adequacy of resources, tight delivery timelines, and administrative complexity. Only 15 per cent of councils said they were confident the new fund would be ready for implementation by April 2026.
Cllr Dr Wendy Taylor, Chair of the LGA’s Health and Wellbeing Committee, said:
“Financial security and wellbeing are closely intertwined with overall health and life expectancy. Reducing financial hardship directly impacts health inequalities across the country.
“We are pleased that the government has maintained funding through the new CRF by combining the current schemes. However, it’s vital that the strengths of these programmes are preserved, especially their focus on building long-term financial resilience.”
Dr Taylor also warned that streamlining the two existing funds would be a significant challenge, as they are currently managed by different tiers of government under varying rules.
“Councils should play a key role in commissioning and delivering services to ensure they align with local needs. With only 15 per cent of councils confident the new fund will be ready by April 2026, it’s vital that development is informed by residents’ experiences, support organisations, and councils themselves,” she added.
The LGA said it will continue to work closely with the Department for Work and Pensions (DWP) and the Ministry of Housing, Communities and Local Government (MHCLG) to ensure the fund’s effective design and rollout.
