The Department for Work and Pensions has confirmed a £1 billion Crisis and Resilience Fund for English local authorities from April 2026 to March 2029, coinciding with the Second Reading in the House of Commons today, 3 February 2026, of the Universal Credit (Removal of Two Child Limit) Bill. Ministers describe both measures as central to the Child Poverty Strategy and to strengthening the safety net for low‑income families. (gov.uk)
Parliamentary documents set out the legislative pathway. The Universal Credit (Removal of Two Child Limit) Bill (Bill 359, Session 2024–26) was introduced on 8 January 2026 and is scheduled for Second Reading on 3 February 2026. The Bill would remove the two‑child limit within Universal Credit so that, from April 2026, the child element-around £3,650 a year in 2026/27-would be payable for all eligible children in a household. (commonslibrary.parliament.uk)
The Office for Budget Responsibility estimates the removal of the limit will cost £2.3 billion in 2026–27, rising to £3.0 billion by 2029–30. Government estimates cited by the OBR indicate around 450,000 fewer children in poverty by 2029–30 relative to the policy remaining in place, with roughly 560,000 families gaining and an average award increase of about £5,310 in 2029–30. (obr.uk)
Alongside the Bill, the Crisis and Resilience Fund (CRF) provides a multi‑year, ringfenced revenue grant to councils. Guidance confirms the CRF runs from 1 April 2026 to 31 March 2029 and is delivered via the Local Government Finance Settlement, with payments made as Section 31 grants. Authorities must split spend across four components: Crisis Payments, Housing Payments, Resilience Services and Community Coordination. (gov.uk)
The guidance replaces the Household Support Fund and brings Discretionary Housing Payments into a single scheme. A phased transition applies to the Housing Payment element, with authorities expected to maintain existing levels of housing support in the first two years, using 2025/26 Discretionary Housing Payment allocations as the baseline. (gov.uk)
Delivery expectations are explicit. Councils are instructed to adopt a cash‑first model for Crisis Payments-cash by default, not cash‑only-with discretion to use vouchers or in‑kind support where this better meets an applicant’s needs. The guidance also provides practical options for rapid cash disbursement through established mechanisms. (gov.uk)
Oversight and data sharing are prescribed. Authorities must appoint a Senior Responsible Officer, submit regular management information returns and comply with audit and recovery provisions. To support targeted help, DWP will provide monthly data shares (via Transfer Your File) on eligible Universal Credit, Pension Credit and Housing Benefit cases, including indicators such as family composition and income thresholds. (gov.uk)
The CRF applies to England only. The government states that Barnett consequentials are included within the £1 billion settlement and notes that Discretionary Housing Payments will continue to exist in Wales outside the CRF structure. Provisional multi‑year allocations for the consolidated grants, including the CRF, were published on 18 December 2025. (gov.uk)
For local authorities, the operational implications are immediate. Finance and welfare teams will need to finalise delivery plans for 2026/27, set up cash‑first disbursement routes, align existing Local Welfare Assistance schemes with the CRF strands, and put in place out‑of‑hours access, referral pathways and fraud controls consistent with the grant conditions and reporting timetable. The emphasis on multi‑year planning is intended to move schemes away from short‑term emergency pots to more preventative support. (gov.uk)
Stakeholder responses referenced by the government welcome the approach. The Independent Food Aid Network highlights the move to cash‑first crisis support as a means to reduce reliance on charitable food parcels, while Trussell notes the fund’s potential to prevent severe hardship by cushioning financial shocks. Both organisations contributed to the scheme’s design through government working groups. (gov.uk)
If MPs back the Bill at Second Reading, it will proceed to Committee stage for detailed scrutiny. Subject to Parliament, the removal of the two‑child limit would take effect from April 2026, aligning the legislative timetable with the launch of the CRF and creating a single window for councils and advice providers to update systems and guidance for families. (commonslibrary.parliament.uk)