Council welcomes funding to support Newham residents facing financial and housing crises
Newham residents facing financial hardship and housing insecurity will benefit from a new long-term government funding model that will help the Council provide more targeted, local support when it is needed most.
At a meeting of Cabinet on 16 June 2026, Newham Council welcomed changes to the way central government funding is allocated to support households experiencing financial crisis.
From April 2026, the Department for Work and Pensions has moved from one-off annual payments to a three-year planned investment model.
The primary purpose of the new funding model is to provide timely, cash-first support to households experiencing financial shocks. It is designed to help residents avoid falling into repeat crises, reducing longer-term pressures on families and demand on council services, including Housing, Adult and Children’s Services.
The new approach gives the Council greater certainty to plan ahead and strengthen support for residents affected by the ongoing cost of living and housing pressures. We are committed to making sure our residents know where and how to access cost of living support when they need it and understand that we are here to help.
The Crisis Resilience Fund (CRF) will be delivered through a place-based approach aligned with the Council’s eight Community Neighbourhood areas. This will provide residents with accessible, local support closer to home and tailored to the specific needs of their communities.
Councillor Lakmini Shah, Cabinet Member for Children, Education and Communities said:
“This administration has pledged to bring the delivery and distribution of services closer to the people where they live, using a new Community Neighbourhoods model, which will make decision making and service delivery More accessible to our residents. In additional to cross-Council work between our services, we will put in place specific roles for the Voluntary, Community and Faith Sectors (VCF), and Children’s Centres, Family Hubs and schools.
“Our delivery model will ensure that in addition to financial support, our services will offer advice, income maximisation, arrears prevention and resilience building activity, to reduce risk of further crisis.”
As part of the new delivery model, £1.5 million over three years will be invested in advice services to help residents maximise household income, access employment opportunities and ensure they receive the benefits and financial support to which they are entitled.
The Council will work closely with local partners, including voluntary, community and faith organisations, Children’s Centres, Family Hubs and schools, to ensure residents can access support, advice and guidance within their own neighbourhoods.
Councillor Zulfiqar Ali, Cabinet Member for Finance and Resources said:
“The new Crisis Resilience Fund (CRF) is a game changer for local authorities like Newham who bear the brunt of the UK’s cost of living and housing crises. It will help us organise, plan and target our finances to meet our statutory commitments, and support our residents, particularly for those facing homelessness, whilst avoiding ‘shocks’ to our longer-term budget.
The new Crisis Resilience Fund will make almost £25 million available to Newham over the next three years. The funding will be delivered primarily through the Council’s Our Newham services to support residents most affected by financial hardship and housing insecurity.
“As with any household the Council requires long term notice of its income in order to make informed and resilient plans for the future, and we warmly welcome this new approach to local government funding.”
The new programme builds on the success of the Household Support Fund, which since 2021 has delivered £23 million in support and helped tens of thousands of Newham residents.
