This report provides an overview of all elements of Crisis & Resilience Fund support being proposed to support low-income households within the borough.

The Committee considered a report that provided information on the introduction of the new Crisis and Resilience Fund (CRF allocated by the Department of Works and Pensions (DWP) to deliver support to low-income households from 1 April 2026.

It was reported that the CRF allocation to Reading had been confirmed as £2,335,307 each year from 2026/27 to 2028/29. This funding replaced the Household Support Fund (HSF) and Discretionary Housing Payments (DHP) schemes, but was a new scheme with different requirements.  By comparison, the Council had received £367,440 for Discretionary Housing Payments and £1,992,735 for the Household Support Fund in 2025/26, totalling £2,360,175. HSF was allocated for 6–12-month periods, making longer term planning challenging. There was an expectation from Government that the current DHP arrangements would continue (as the Housing Payments element) for at least the first two years of the CRF.

It was reported that the aim of the CRF was to provide support for those on low incomes who encountered a financial shock, whilst also investing in local financial resilience to enable communities to better deal with crises in the long-term, reducing dependence and repeat need. Within Reading, the Council wanted the CRF to bring positive and sustained change to the financial health of residents, many of whom faced ongoing financial challenges because of their specific circumstances.  As well as providing the immediate crisis support residents needed, the Council would proactively provide access to ongoing support and consistently direct residents to take up these opportunities to avoid falling into crisis in the future.

It was noted that the Council would work continue to work in partnership with the voluntary and community sector and other statutory organisations, which provided a substantial amount of support to low-income residents, to achieve its CRF ambitions.

The report provided an overview of all elements of Crisis & Resilience Fund support being proposed to support low-income households within the borough.  These included:

·         Enabling residents facing a financial crisis to apply for support throughout the year.

·         Increasing the flexibility of financial support available to each household to be able to offer more support to those with the highest need.

·         Specifically supporting residents on means-tested benefits with their housing costs.

·         Applications for support considered by trained staff who can identify and refer to wider support options available to residents.

·         Funding an enhanced range of local services which support residents' long-term financial resilience.

·         Pro-actively identifying residents who may be at risk of falling into financial crisis.

·         Improving the co-ordination and collective joint working of organisations within the borough who provide cost-of-living support to low-income households.

It was noted that the Council’s approach would emphasise a person-centred and preventative approach, ensuring that support was tailored to individual circumstances and would seek to address the root causes of financial difficulties. Support would need to adapt and respond to different demands, and it was therefore recommended that officers, in consultation with the Leader of the Council, be authorised to undertake any changes necessary.

Resolved –

(1)        That the utilisation of the DWP Crisis & Resilience Fund as detailed in Para 4.41 of the report for 2026/27 to support low-income households in Reading be agreed;

(2)        That the Executive Director of Resources and Executive Director of Communities and Adult Social Care, in consultation with the Leader of the Council, be authorised to confirm and make changes to the Crisis and Resilience Fund scheme for Reading Borough whilst maintaining compliance with the funding allocation requirements from DWP, as detailed in para 4.45 of the report;

(3)            That the decision taken under officer delegation by the Director of Policy, Change and Customer Services to utilise an element of the funding for staff resource and initial Crisis Payments and Housing Payments as detailed in para 3.5 of the report be noted.