Lambeth Council has called on central government to restore funding so that it can continue financial support for residents experiencing hardship.
The council has set out how it will use a £5.2 million fund to help residents facing financial hardship, combining immediate crisis support with services designed to strengthen financial resilience in the long term.
The Department for Work and Pensions’ Crisis and Resilience Fund runs from 1 April 2026 to 31 March 2027 and supports residents across the borough. It replaces the Household Support Fund and Discretionary Housing Payments funding. Of the total funding, The remaining £4.1 million will fund a package of crisis payments, housing support, advice and preventative services. This will include a new local energy support scheme and improved support for local voluntary and community organisations.
However, the grant has shrunk by around £500,000 since 2025-26. This, along with wider austerity being imposed on Lambeth and new central government restrictions on how the money can be used, means that financial support for families during school holidays will narrow. Like-for-like support will continue for families in receipt of Free School Meals and Council Tax Support and lone parents in receipt of Free School Meals.
Lambeth Council is calling on central government to increase funding and lift restrictions on how the grant is spent so that it can continue, and enhance, holiday support. Cllr Michael Chessum, Lambeth Council’s Cabinet Member for Economy, Cost of Living and Empowered Communities, said:
“Lambeth residents are being pushed into financial hardship because wages and benefits have fallen while the cost of housing, food and energy has rocketed – the result of years of deregulation and austerity. This £5.2 million package will provide vital help when residents reach a crisis point, while also offering advice and practical support.
“But the cuts are continuing, damaging the Council’s ability to respond. So today, as we prepare for another cost of living shock, I am calling on the government to reverse austerity and invest in local government so that we can deliver the support people need.
“We want residents toget the right help without being passed from service to service or having to tell their story more than once. By working closely with voluntary and community organisations and making sure that those getting emergency payments are also getting longer-term support, we will continue to help those most in need. But to solve this crisis, we need more funding and structural change.”
The package includes:
- £500,000 for a cash-first Crisis Payments Scheme for residents facing an emergency or crisis
- around £1.15 million for housing payments to help eligible residents with costs including rent shortfalls, deposits and rent in advance
- £100,000 in direct payments to families
- £100,000 for a local energy support scheme for residents struggling with energy bills
- continued investment in the Tackling Poverty action plan, including Financial Link Workers, free period products and affordable-warmth support
- £787,000 for commissioned advice services and an advice line
- £100,000 for advice delivered in community settings through small grants
- £197,000 to improve coordination between the council and voluntary and community organisations.
The proposals aim to make support easier to navigate, connect people receiving emergency help with longer-term advice, and create a “no wrong front door” approach so residents do not have to repeatedly explain their circumstances.
The plans were shaped by engagement with residents and voluntary, community and faith organisations, including eight community design workshops involving more than 40 organisations, four resident focus groups and an online consultation.
Learn more on the Lambeth Website.
