It is a replacement for the temporary Household Support Fund which had been extended on a rolling basis since it was set up in 2021, but was due to finish at the end of March.
The level of funding is broadly the same as the previous scheme, leaving some councils disappointed that there has not been more money allocated.
A recent survey for the Local Government Association showed most councils in England did not believe the current funding will be sufficient to meet local welfare needs.
The cash element is a significant change to the past scheme, which the government hopes will help fulfil a manifesto pledge to end “mass reliance on emergency food parcels”.
It means councils can give those experiencing difficulties direct access to cash in the hopes of removing the need for hand-out provisions.
The guarantee of at least three years of funding means councils can plan their support schemes and provision over a longer period.
Emma Revie, co-chief executive at the Trussell Trust, a charity that supports food banks, said: “The new Crisis and Resilience Fund is a vital step towards ensuring no-one is forced to turn to a food bank to get by.”
In guidance to councils, the Department for Work and Pensions said the money can be used for three different purposes: crisis payments, housing payments – for those facing an unexpected shortfall, and resilience services for funding the charities and local organisations currently providing front-line support.
The payments could help in scenarios such as redundancy, help leaving an abusive relationship or an unexpected bill.
There is no stipulation about how each local authority should divide their funding between those different purposes.