Purpose

To consider the report of the Cabinet Member for Communities, Safety and Leisure seeking approval of Southampton City Council’s local delivery model for the Crisis & Resilience Fund (CRF) for the period 2026–2029. The report sets out how the Council will deliver crisis support and financial resilience services, including Crisis Payments, Housing Payments, Resilience Services and Community Co-ordination, to support residents experiencing financial hardship and prevent future crises.

Decision

(i)  To approve the proposed local delivery model for the Crisis and Resilience Fund (CRF) 2026 -2029.

(ii)  To delegate authority to the Executive Director for Wellbeing, (Children & Learning), following consultation with the relevant Cabinet Member, to deliver the Crisis and Resilience Fund programme  in line with the Department for Work & Pensions grant conditions and make operational decisions regarding the allocation and distribution of CRF funding, including adjustment or reallocation of underspends, within the approved budget.

Reasons for the decision

1.  Southampton City Council has been allocated £4.3 million for both 2026/27 and 2027/28, with a further £4.2 million allocated in 2028/29 for the Crisis and Resilience Fund (CRF). Approximately 15% of the annual allocation is ringfenced for CRF Housing Payments, which replace the former Discretionary Housing Payments (DHP) scheme. The remaining funding is available to support the wider objectives of the Fund.

2.  Approval of the local delivery model will enable the Council to utilise the Government funding allocation in accordance with the programme requirements and ensure support is available to residents throughout the three-year funding period. The proposed approach provides a balanced model of crisis intervention, prevention, and resilience-building activities, helping households to improve overall financial wellbeing.

3.  The CRF was introduced from 1 April 2026 following the end of the HSF. Although the overall level of funding is broadly comparable to the previous HSF allocation, the CRF is a distinct programme with different objectives, conditions and delivery requirements. Cabinet approval is therefore required for the proposed local delivery model for 2026–2029.

4.  The recommendations will provide a clear governance framework for the management of the Fund, ensuring transparency, accountability, and effective performance monitoring. Delegated authority is proposed to enable timely operational decision-making and flexibility to respond to emerging needs, changing demand patterns, and any future Government guidance throughout the lifetime of the programme.

Alternative options considered

The Council may consider not accepting this funding. This is not recommended as the Fund is designed to assist local authorities to help residents/ households experiencing crisis and to be integral to the Government’s wider package of ‘cost of living’ support.