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Cabinet
Subject: Crisis and Resilience Fund
Date of meeting: Thursday, 19 March 2026
Report of: Cabinet Member for Finance and City Regeneration
Lead Officer: Director Property & Finance
Contact Officer: Paul Ross-Dale
Email: Paul.Ross-Dale@brighton-hove.gov.uk
Ward(s) affected: (All Wards);
Key Decision: Yes
Reason(s) Key: Expenditure which is, or the making of savings which are, significant having regard to the expenditure of the City Council’s budget, namely above £1,000,000 and Is significant in terms of its effects on communities living or working in an area comprising two or more electoral divisions (wards).
For general release
1.1 This report seeks approval for the proposed allocations and delivery approach for the government’s Crisis and Resilience Fund (CRF), which replaces the Household Support Fund (HSF) from April 2026.
1.2 Delivery of the CRF supports the delivery of the Council Plan outcome to be a fair and inclusive city. It specifically delivers the council’s work to reduce inequality through supporting the delivery of the Cost of Living Action Plan and tackling food insecurity for all, including looking at the emergency food needs of Black and Racially Minoritised communities, refugees and asylum seeker communities.
1.3 The CRF aligns with other activities in the city to be a fair and inclusive city, including the Inequality and Life Chances Review 2026, the Pride in Place Programme and the Community Cohesion Roadmap. As each activity is progressed, opportunities for future allocations of the CRF will be considered to ensure activities are complementary.
2.1 Cabinet agrees the allocation set out in Sections 4.3 to 4.29 and Appendix 1 for the allocations of the CRF.
2.2 Cabinet delegates authority to the Section 151 Officer, following consultation with the Cabinet Member for Finance & Regeneration, to make alterations to the allocation of the CRF to maximise its use.
2.3 Cabinet delegates authority to the Section 151 Officer, following consultation with the Cabinet Member for Finance & Regeneration, to approve a revised Housing Payment Scheme.
3.1 The Household Support Fund (HSF), introduced by the Department for Work and Pensions (DWP) in 2021, will conclude on 31 March 2026. From 1 April 2026, the Government will implement the Crisis and Resilience Fund (CRF) as a successor scheme. CRF is designed to provide targeted support for households facing financial hardship, while also building longer-term resilience and community co-ordination.
3.2 CRF also incorporates Housing Payments. These replace Discretionary Housing Payments (DHP), which help vulnerable households meet rent shortfalls and other housing costs due to Universal Credit and Housing Benefit not covering the full rent.
3.3 The CRF allocation for Brighton & Hove is as follows:
|
Old HSF and DHP |
2025/26 |
New CRF |
2026/27 |
2027/28 |
2028/29 |
|
|
HSF |
£3,772,323 |
CRF core |
£3,250,784 |
£3,248,985 |
£3,315,121 |
|
|
Discretionary Housing Payment |
£645,514 |
CRF Housing Payments |
£645,514 |
£645,514 |
£525,827 |
|
|
DHP Admin grant |
£85,557 |
CRF Housing Payments admin |
£85,557 |
£85,557 |
£0 |
|
|
Total pot |
£4,503,394 |
Total pot |
£3,981,855 |
£3,980,056 |
£3,840,948 |
3.4 The proposed CRF allocations for 2026/27 are set out in paragraphs 4.3 to 4.29 of this report and Appendix 1. These allocations have been informed by learning from previous HSF and Fairness Fund activities. The demonstrative impact of these activities is detailed in Section 4 below. The new elements in the proposals around the Best Start Family Hubs and the Holidays, Activities and Food Programme are co-designed with cross-council input. In addition, the proposed allocations have been informed by the Welfare Support Financial Assistance Board, the Poverty Reduction Steering Group and meetings with partnership organisations and stakeholders to evaluate HSF strengths and weaknesses and identify priorities and opportunities for CRF, as set out in Section 6.
A Fair and Inclusive City
3.5 Although the CRF is a three-year fund, the allocation proposals cover 1 April 2026 to 31 March 2027 only. This will allow time for further engagement with stakeholders and input from other activities to inform future years of the scheme. This is to ensure that there is a balanced and strategic view of how to deliver the best outcomes from CRF through to 2029 to support delivery of the Council Plan. Proposals for future years allocations will be brought to Cabinet and will be informed by:
· The Inequality and Life Chances Review 2026 is capturing lived experiences from a range of stakeholders across the city, with a focus on neighbourhoods with persistent and entrenched poverty and inequality. The Review will seek views from personal and community experiences, alongside stakeholders who have a role in the local economy and policy making. The findings from the Review can be used to inform future allocations of the CRF.
· The Pride in Place Programme is the government’s long-term investment programme offering up to £20 million to improve local neighbourhoods. The funding is designed to put power directly into the hands of local residents, helping communities decide what matters most. Whitehawk is a recipient of this funding. Some of the aims of the Programme align with the aims of the CRF, most notably delivering interventions that provide lasting change and building resilience in communities, alongside seeking to reduce child poverty and alleviating cost of living pressures. Feedback from the Programme’s community engagement activities, whilst focused on Whitehawk, can be used to inform allocations of the CRF for years 2 and 3.
· The Community Cohesion Roadmap sets out how to build community cohesion in Brighton & Hove. Some of the principles and pillars within the Roadmap are complementary to the aims of the CRF, particularly around inclusion and fairness. As allocations for future years of the CRF are developed, consideration will be given to the aims and actions within the Roadmap to lever funding, where possible.
Help during the school holidays
3.6 The CRF is a needs-based, crisis-focused fund, not universal welfare provision. As such, it is different to HSF in terms of the provision of Free School Meals (FSM). CRF does not permit automatic, blanket vouchers for all FSM families. Instead, CRF allocations must prioritise support for the poorest families during school holidays through targeted, needs based help, by assessing individual hardship, choosing the most appropriate form of assistance, and linking families to wider resilience services. Therefore, there is not a FSM allocation within the CRF.
3.7 To mitigate this, provision has been made within other allocations including Best Start Family Hubs (paragraphs 4.10 and 4.12), Cost of Living Events (paragraph 4.13) and the Holidays, Activities and Food Programme (paragraph 4.14). Furthermore, other allocations such as Food and Essential Organisations (paragraphs 4.5 and 4.6) provides community food support to prevent hunger and build long-term financial stability. This has been built into the CRF allocations.
3.8 There are also national policy changes that will reduce pressure on low-income families to mitigate this:
· Removal of the Two Child Limit: the two-child limit has long been associated with deepening child poverty; its removal ensures larger families receive full benefit entitlement again.
· Expansion of Universal Credit–linked FSM eligibility: starting in 2026, all UC households will qualify for FSM.
· Increased investment in family hubs, early years, and school-based provision: wider government commitments in the Spending Review include expanded childcare and family support services, which indirectly reduce household costs, which will be complemented by local provisions through CRF.
· Local Mitigations and Strengthened Support Model: despite CRF restrictions, the council is implementing a robust suite of mitigations to support children and families during holiday periods and beyond.
· Expansion of Breakfast Clubs: to contribute to dietary stability, reduces morning hunger, and improves attendance and concentration in the absence of FSM provision.
Staffing and administration
5.1 The proposed CRF allocations aim to strengthen financial resilience by ensuring that households do not just receive vouchers or emergency help, without being signposted or referred for additional help, thus avoiding the crisis reoccurring in the future. The proposed allocations have been informed by learning and experience of delivering the HSF and Fairness Fund.
5.2 Changing the balance of allocation is possible but the proposed allocations attempt to sustain effective support, maintain a diverse range of access routes, provide more preventive advice and support, and enable several innovative initiatives. Any changes to the allocations will need to be considered to determine impact and may result in services being reduced or withdrawn.
6.1 The Welfare Support and Financial Assistance Board meets regularly, bringing together a range of practitioners from council services and the advice and food network. On 3 March 2026, the usual membership of the group was expanded to enable around 40 organisations to contribute feedback. Our partners were supportive of the proposed transition‑year approach, with organisations welcoming continuity of funding in Year 1 to avoid destabilising frontline provision. However, concerns were raised about whether enough provision had been made to reflect the CRF’s move away from Crisis towards Resilience, in a way that allowed enough partners to access funding in a balanced way. Participants emphasised the importance of community‑led insight in shaping future CRF delivery, noting that local organisations are well‑placed to identify emerging needs and deliver flexible, preventative support. There was consistent agreement on the value of partnership working, including co‑location, shared delivery models and stronger links with council teams, to better meet household needs.
6.2 As a result of the feedback, some of the original proposals around the VCS have now been combined into a single, enhanced pot of £400,000, so that there is more scope for strengthening the resilience strand over time, supported by data‑led prioritisation (paragraphs 4.16 to 4.18).
6.3 Partners also raised a number of risks and priorities to inform future design. Smaller food and mutual‑aid projects highlighted capacity pressures and the need for support, if required, to adapt toward broader resilience activities. There was strong interest in developing system‑wide approaches, such as integrated work with housing, social care and credit‑union partnerships, and there was strong support for further co‑design over the next six months to refine Years 2 and 3 of the programme.
6.4 Three meetings were held with our partner organisations and stakeholders in September 2025 to evaluate HSF strengths and weaknesses and identify priorities and opportunities for CRF.
6.5 The meetings allowed for reflection on the past year of HSF delivery, where organisations highlighted the benefits of flexible, rapid support, longer term funding, light‑touch monitoring, and community‑led models that reached people who would not engage with statutory services. Cross-Sector partnership was highlighted as a strength that should be continued into CRF.
6.6 Challenges were also identified, including duplication of support due to the absence of shared data systems, pressures linked to rising demand and complex cases, gaps in refugee and domestic abuse pathways, unfunded core costs, and unstructured referral routes that overwhelmed some services.
6.7 Looking ahead to CRF, organisations expressed a preference for multi‑year and flexible funding, inclusion of advice within resilience‑building, funded core costs, better data‑sharing, tighter coordination to reduce duplication, and stronger integration across food, housing, health, and welfare services. Across all sessions there was strong interest in ongoing CRF planning, recognition that HSF often acted as a gateway to wider support, and a shared call for more joined‑up networks, better evidence, and sustained outreach to ensure marginalised communities are effectively reached.
6.8 A more detailed summary of these meetings is at Appendix 2, providing valuable insight into the impact of HSF.
6.9 The Poverty Reduction Steering Group has discussed the proposed allocations as set out in this report. There was a full discussion of the potential impact of different choices and broad agreement with the proposal allocations of the CRF.
6.10 The remaining two years of CRF funding will be informed by engagement with stakeholders to ensure that there is a balanced and strategic view of how to deliver the best outcomes from CRF through to 2029. Feedback received via the Inequality and Life Chances Review 2026, Pride in Place Programme and the Community Cohesion Roadmap will also inform future allocations. Further proposals will be brought to Cabinet later this year.
7.1 The funding sources set out in this report are based on the best information currently available. The 2026/27 to 2028/29 Crisis and Resilience Fund (CRF) is a provisional allocation and yet to be confirmed. The provisional allocations for consolidated grants on the Government website sets out that the Council's allocation for CRF is 2026/27, 2027/28 and 2028/29 is £3.982m, £3.980m and £3.841m respectively.
7.2 The report proposes delegating authority to the S151 Chief Financial Officer following consultation with the Cabinet Member for Finance & City Regeneration to make minor alterations to the allocation of the CRF in order to maximise its use in accordance with the relevant time constraints and any change to the final allocation from government.
Name of finance officer consulted: Craig Garoghan Date consulted: 02/03/2026
8.1 This report seeks Cabinet approval to the arrangements and allocation of the new Crisis and Resilience Fund which replaces the Household Support Fund and the Discretionary Housing Payments System. The new fund comprises crisis payments, housing payments, resilience services and community co-ordination. These are “key decisions” and are therefore being made by Cabinet in accordance with Part 2E of the Council’s Constitution.
8.2 The CRF grant is being given to the Council by the Government in accordance with Section 31 of the Local Government Act 2003. The CRF will normally be distributed by the Council in accordance with section 1 Localism Act 2011, but other more specific statutory powers may be used, including section 17 Children Act 1989.
8.3 The CRF will need to be operated in accordance with the DWP Guidance referred to in the report. Officers will also need to ensure that any grant payments to voluntary sector and community organisations to assist in its distribution to individuals in need comply with Subsidy rules (previously State Aid). The ‘de minimis’ regulation exception should be considered where relevant. Also, specifically any housing payments should take account of the case law referred to in the guidance to avoid any duplication of payments.
8.4 The Equality Act 2010 states that public bodies, when carrying out their functions, must have “due regard” to equalities objectives namely the need to eliminate discrimination and advance equality of opportunity and foster good relations between those who share a “protected characteristic” and those who do not (Equality Act 2010, Section 149). Cabinet will need to do this when considering this report.
Name of lawyer consulted: Allan Wells Date consulted: 18/02/2026
9.1 Approval of the recommendations in this report will enable the council to provide mitigating controls to address Strategic Risk 24 failure to provide an equitable approach to ensure equality of access, outcomes and experiences for all.
9.2 Failure to endorse the recommendations presents a risk that the council will be unable to submit its CRF Delivery Plan to the DWP by the deadline of 1 July 2026. The funding of posts within the council from 1 April also depends upon approval. There is a risk that voluntary and community sector organisations, that are reliant on these funds to support the most vulnerable people and households in the city, may not be able to function as required from 1 April 2026, as the funding has not been confirmed. There is also a risk that some council services that provide support, advice and financial assistance to the most vulnerable people and households in the city, cannot function as required from 1 April 2026, as the funding has not been confirmed.
9.3 There are delivery risks associated with the allocations i.e. that some allocations over or under spend. Outcomes and spend will be monitored through the monthly TBM process and reports to the DWP. Where over or under spends are identified, appropriate action will be taken in line with recommendation 2.3.
10.1 The existing Equalities Impact Assessment for Household Support Fund and Fairness Fund substantively covers the same ground as the CRF. An updated version of the Equality Impact Assessment is attached at Appendix 3.
10.2 One of the changes for CRF is the withdrawal of FSM vouchers in the school holidays. The reduction of funding for FSM is covered in the EIA. This could impact intersecting groups due to the large cross-section of low-income households who currently receive the vouchers. The main body of this report deals with the proposed mitigations, and the national conditions that improve the situation for many households.
10.3 The changes required in monitoring the CRF will give officers an opportunity to improve the dataset with a view to updating the EIA as part of the co-design process for years two and three of the CRF.
11.1 There are no direct sustainability implications arising from this report. However, funding is proposed for energy advice and fuel poverty that it aimed at helping households to achieve greater energy efficiency or reduce energy use. In addition, CRF outcomes are broadly aligned with the Food Strategy Action Plan, which means that affordable food projects with sustainable aims are centred.
12. Health and Wellbeing implications
12.1 Allocations of the CRF are aimed at supporting delivery of the Cost of Living Plan and reducing the impacts of poverty for low-income households alongside supporting advice services (food, fuel and financial) to help people reach a more sustainable position. This has significant health and wellbeing benefits as poverty and debt are known to be significant contributors to ill-health, particularly mental health issues which has well researched links to debt.
13.1 The recommendations in this report, if approved, will enable the council to meet the requirements of the CRF, to support low-income households who encounter a financial shock and to support activity that builds individual and community financial resilience. The activities funded through the CRF will provide targeted support for households facing financial hardship, while also building longer-term resilience and community co-ordination.
13.2 A future report will be brought to Cabinet with proposed allocations for future years of the CRF, aligning with and informed by: learning from year one of the CRF, the Inequality and Life Chances Review 2026, the Pride in Place Programme and the Community Cohesion Roadmap, as well as specific CRF engagement events.
Supporting Documentation
· Appendix 1: CRF allocations
· Appendix 2: feedback from partnership meetings
· Appendix 3: Equality Impact Assessment
· Brighton & Hove Fairness Fund and Household Support Fund 2025-26 Report presented to Cabinet on Thursday 20 March 2025 (item 179)
· The Brighton & Hove Fairness Fund and Household Support Fund Report presented to Cabinet on Thursday 17 October 2024 (item 80)
· Cost of Living Update including the Household Support Fund 2023/24 Report presented to Policy & Resources Committee on Thursday 16 March 2023 (item 144)
· Cost of Living Update including the Household Support Fund Tranche 3 Report presented to Policy & Resources Committee on Thursday 6 October 2022 (item 59)
· Cost of Living Response including the Household Support Fund 2022 Report presented to Policy & Resources Committee on Thursday 12 May 2022 (item 135)
· Household Support Fund Report presented to Policy & Resources (Recovery) Sub-Committee on Thursday 4 November 2021 (item 19)
· Interim Report on Covid Funds and the New Household Support Fund Report presented to Policy & Resources (Recovery) Sub-Committee on Thursday 21 April 2021 (item 35)
· Discretionary Housing Payment Policy 2013 (item 185) presented to Policy & Resources committee 2 May 2013.