A new Crisis Resilience Fund which will provide emergency assistance for people who are in short-term financial crisis as well as support for families and individuals to become financially stable in the longer-term will be considered by Cabinet next week.
The Government is rolling out the new three-year Crisis Resilience Fund (CRF) from the end of March.
It will replace the Household Support Fund which was launched in 2001 to support households on low income by providing emergency food, furniture, white goods, and vouchers to eligible pupils during school holidays.
The new fund will see £3.6m a year coming to Peterborough over the next three years to support residents in dealing with both short-term crisis and longer-term financial challenges, supporting them to become financially stable.
The main aim of the fund is to provide a safety net for those on low incomes who encounter a financial shock, such as sudden income loss or unexpected expenses, and to invest in building stronger support in communities to enable people to better deal with crises in the long-term, thereby reducing crisis need.
The introduction of the CRF also coincides with the Government’s plans, from April, to implement a series of welfare reforms that should improve the incomes of low-income households, including the removal of the two-child limit for Child Benefit and the increase in most working age benefits, including Universal Credit.
In addition, the council has launched a financial inclusion programme which aims to support families away from poverty by putting more money into their pockets. This includes:
- A new online Better Off calculator which allows people to check what benefits and other support they may be entitled to and to see how their income might change in different circumstances.
- New ‘Money help’ information pages on the council’s website with information on subjects such as maximising income from benefits, childcare offers and work-related support, help with debt, budgeting and managing household bills, and food support, local welfare assistance and other crisis help. There are also links to trusted local and national organisations offering free, confidential advice.
The Household Support Fund is drawing to a close, as will the supermarket voucher scheme for low-income households during school holidays. However, vouchers will still be provided at Easter to support families to adjust to the changes. The vouchers will be £15 rather than the usual £30.
Families will still receive support, when needed, from the Crisis Resilience Fund and many households will see an un uplift in their income because of the national benefit changes and the local support to assist households in increasing their income, including by making sure they are receiving all the benefits to which they are entitled.
In addition, the Holiday Activities and Food (HAF) programme which provides children with activities and meals during key school holidays, has been extended until March 2029. Every child attending HAF receives a balanced, nutritious meal each day with a minimum of four hours of activities per session, including sports, arts, cultural activities, food education and life skills.
Councillor Zameer Ali, Cabinet Member for Communities, Poverty and Public Health, said: “The new Crisis Resilience Fund will provide a safety net for people on low incomes who encounter a financial shock, such as sudden income loss or unexpected expenses.
"Through a new Crisis Fund we will be able to offer one-off cash payments to support residents through their crisis, which is something we could not do under the previous Household Support Fund.
“It is vital though that we also work with our residents to support them to become financially stable in the longer term. Through our continued work with community partners and organisations we can support residents to maximise their income and resolve the issues that are contributing towards their financial hardship.
"As a result, more of our residents will be able to lead financially secure lives, which will positively impact their health and wellbeing in so many ways.
“We know that some families will miss the school holiday vouchers which were provided under the HSF, however with the changes nationally to child benefit and Universal Credit, and the support we can provide locally to maximise income and support, we are confident that the impact of this will be mitigated.”
At the Cabinet meeting on 4 March councillors will be asked to approve the local CRF scheme which will include:
- Crisis support offered by community support hubs that offer a range of services, including emergency food, furniture, basic white goods and energy support and a Crisis Cash Fund.
- Specialist support from Citizens’ Advice Peterborough to help individuals/families struggling with debt, budgeting and low income so that they can be financially stable in the long-term.
- The Low Income Family Tracker (LIFT) - a data led analytical tool that enables us to identify residents and households on low incomes who may be missing out on financial support, be at risk of financial hardship, or benefit from early help and targeted intervention.
- Continuation and extension of community hubs, in partnership with voluntary, community and faith organisations work. Grant funding will also be provided to smaller community organisations that are able to provide grass roots crisis support in a particular neighbourhoods or communities.
More information about the new fund can be found in the agenda for the Cabinet meeting