District Matters

Pressure helped to delay fund changes

October 2025

Sometimes it is worth making representations to Government through our MPs and our networks if we feel that wrong decisions are being made due to a lack of local knowledge.

A recent notification from the Department of Work and Pensions (DWP) has shown a change of mind after representations.

In June, the District Council was notified about a proposal to merge two existing Government funds (the Household Support Fund (HSF) and Discretionary Housing Payments (DHPs), into a single scheme to create a new Crisis and Resilience Fund (CRF) that will run for three years. Across England this is a Fund worth £842 million annually.

The Household Support Fund was put in place to help households that would otherwise struggle to buy food and pay essential utility bills. Introduced as a temporary measure, it has had repeated extensions.

Discretionary Housing Payments support people suffering exceptional hardship with housing costs. It is available to people receiving Housing Benefit or the housing element of Universal Credit and awarded on a case by case basis.

The problem was not the amalgamation of two funds under one umbrella, but how the fund was to be allocated in two-tier authority areas before local government reorganisation. Currently, the Housing Support Fund goes to County Council whilst Discretionary Housing Payments go directly to the District Councils.

District Councils are the housing and homelessness authorities with the data, relationships with landlords, and front-line expertise on housing and homelessness and are best placed to give housing support. We feared that removal of this fund from the District Council could cause local problems.

We were advised that the new combined CRF fund could go to the County Council. The District Council would then have to apply to the County Council for a share, with all the administrative processes involved. We could have lost direct speedy access to funds needed for vital housing support when a crisis occurs. The ability to give a quick, targeted response is essential to assist a resident who is in difficulty.

Also, with changes due to start from April 2026, this would have created problems for budget planning. The Council needs certainty in order to plan staffing and service delivery for next year.

Local District Councils across the country joined together to provide evidence and case studies. They also raised the issue with their local MPs and asked them to make representations.

Last week (2nd October) we heard that, based on the feedback, the Department of Work and Pensions is proposing a phased approach. The fund will continue to be split between the two councils until reorganisation is completed. This is a really positive outcome for districts and ensures crucial homelessness prevention funding stays where it's needed.

A collective effort by District Councils and MPs was crucial in securing this outcome so that housing support continues to be a core element of local crisis provision. Once we move to a Unitary Council, both funds will be brought together for the benefit of all our residents.

The battle is still not quite over. Once inflation is taken into account, the annual settlement still amounts to a real term cut compared to previous years. The commitment to a three-year programme is welcome, but more needs to be done to prevent rising energy costs and unaffordable or insecure housing pushing more people into crisis.