The Department for Work and Pensions (DWP) has responded to an enquiry regarding potential reductions in Universal Credit payments. The query came from Martyn James Snow, the Rt Rev. the Lord Bishop of Leicester.

Bishop Martyn joined the House of Lords in 2022, where he concentrates on matters concerning poverty. He submitted a written question to the DWP regarding Universal Credit and the Crisis and Resilience Fund.

Written questions enable MPs and Members of the House of Lords to seek information about the work, policy, and activities of Government departments, associated bodies, and Parliamentary administration.

His question stated: "To ask His Majesty's Government what plans they have to ensure that cash payments received through the Crisis and Resilience Fund do not lead to a deduction in a person's Universal Credit payment."

The Crisis and Resilience Fund, which launches later this year, offers grant funding to local authorities in England to deliver preventative support to communities, whilst also helping people when confronted with a financial crisis.

Baroness Sherlock, Minister of State in the Department for Work and Pensions, provided the response.

She stated: "Support from the Crisis and Resilience Fund is classed as local welfare provision. As a result, payments received from the Fund will be disregarded as capital when calculating a person's entitlement to Universal Credit.

"Given the nature of the provision, it is expected this will be spent within the 12 months of receipt. Any monies from the fund unspent within this timeframe will be classed as capital in the usual way."

The Crisis and Resilience Fund launches in April 2026. It comes after figures show that around 12.5million people in the UK have no reserves of money to rely on in an emergency.

The £1billion pot will be handed down to local authorities, who can then decide who will receive the money. It replaces the household support fund.

A Government spokesperson said: "We're committed to tackling poverty and delivering more security and opportunity for families across the UK.

"The £1bn multi-year fund will help prevent households from falling into crisis by giving local authorities the certainty they need to provide emergency financial support."