The future of crisis support: a discussion paper
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Discretionary crisis support is an essential element of a well-functioning welfare system. All households need somewhere to turn to weather sudden shocks to their income, and prevent moments of crisis from escalating. The need for this crisis support has also never been clearer: in 2024, we advised over 83,000 people in England on local social welfare, 95% more than in 2022, and 14% more than in 2023.
The Household Support Fund (HSF) has been the primary source of crisis support in England since it began in 2021. It has provided vital support to households facing hardship with nowhere left to turn, including being used to soften the impact of shortfalls in the wider benefits system. With the HSF’s 7th iteration due to end on 31st March 2026, now is an opportunity to proactively develop a more effective approach to discretionary crisis support in England.
HSF should not be seen as a substitute for benefits adequacy. Given the likely growth in demand for discretionary support if and when significant cuts to disability and incapacity benefits are implemented, the HSF’s successor scheme must be re-oriented towards supporting people through moments of crisis – which people would experience even if benefits were set at higher levels – and away from papering over cracks in welfare provision.
This paper explores the factors the government should consider in their approach to crisis support, by:
Assessing the current HSF model
Exploring key questions for reform
Setting out principles for an improved model for delivery
The most effective option would be continuing to deliver crisis support at local authority level, but crucially with permanent, ring-fenced, and adequate central funding. A statutory duty on local authorities, if appropriately financed, would ensure crisis support was delivered in all English local authorities, and would establish a consistent minimum delivery standard.