How to know if you are eligible for government cash payouts

A new government scheme will grant emergency cash payouts to people on low-incomes across England.

The Crisis and Resilience Fund (CRF), will provide £1bn annually to councils for the next three years from the start of April. This should aid them in planning their support schemes and provision over a longer-term period.

Councils will now be able to offer direct access to cash, unlike past schemes, as a way for the government to fulfil their manifesto pledge of ending “mass reliance on emergency food parcels”.

The new rules state that councils can give money to people in financial hardship after there is an unexpected drop in their income, such as from a redundancy, or a sudden expense like a broken boiler.

The scheme is open to all whether they currently receive benefits or not.

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The Department for Work and pensions explained the money can be used for three different purposes:

The payments could be useful in scenarios such as losing a job, leaving a toxic, abusive relationship or facing an unexpected bill. The local authorities can choose how they divide their funding between those reasons.

Emergency funds can be applied for through local councils. In England, local authorities will have to make applications available to the public by 1 April and transparently publish how they are using the money.

Some councils have already been providing a cash-first approach and deliver them through Post Office cash vouchers or Pay-by-Text platforms which allow cash machine withdrawals.

Funding will also be granted to Scotland, Wales and Northern Ireland, but the authorities will have to decide how the extra money is used.

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This scheme is a replacement for the temporary Household Support Fund which was set up in 2011 and extended on a rolling basis, but was due to finish at the end of March.

The level of funding allocated is a similar amount to the previous scheme, to the disappointment of some councils who wanted more money to be allotted for this.

Most councils in England do not believe the current funding is sufficient to meet local welfare needs, according to a recent survey conducted by the Local Government Association.

Chief executive of the Trussell Trust, a charity which supports foodbanks, Emma Revie, told The Independent: “The new Crisis and Resilience Fund is a vital step towards ensuring no-one is forced to turn to a food bank to get by, and represents important progress on the government's manifesto commitment to ending the need for emergency food.

“We welcome its development, which is based on the evidence and insights from our community of food banks and other experts in the Crisis Support Working Group and we look forward to continuing this work in partnership to help end the need for food banks for good.”

Children’s charity Barnardo’s chief executive Lynn Perry said: “For too many families, a sudden crisis can push them to the brink, leaving children at risk of going without food, warmth or other essentials. This guidance sets out how crisis support can be delivered in a way that protects dignity, offers real choice and reaches those who need it most. It has the potential to make a meaningful difference to children growing up in poverty.”