Driving cash first support: efficient multi-year HSF allocation using data segmentation in Tower Hamlets | Policy in Practice | Benefits calculator and data analytics
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Driving cash first support: efficient multi-year HSF allocation using data segmentation in Tower Hamlets

Challenge

Reaching the right residents quickly with discretionary payments

Solution

Proactive, data-led outreach enhanced existing application based scheme

Impact

Prompt cash first payments efficiently and accurately allocated to eligible residents

 

Figures correct in January 2026

Tower Hamlets is already addressing a key pillar of the Crisis and Resilience Fund by evolving its support distribution model to include proactive, cash first interventions.

Using data insights to identify residents most impacted by the cost of living crisis has allowed the council to prioritise rapid, cash first assistance. This model illustrates what good looks like, proving that discretionary support can be delivered with precision and pace.

The challenge: reaching the right residents quickly

For Tower Hamlets Council, identifying residents most impacted by the cost of living crisis was vital to understanding how to allocate their Household Support Fund (HSF).

With funding often announced with short lead times, the council needed a way to plan schemes and identify residents without the administrative burden of pulling together many datasets across different teams.

The solution: proactive segmentation through LIFT

From tranche 2 in 2022 to tranche 7 in 2025/2026, officers have used LIFT each year to segment their low income households. While the council maintained an application based scheme, the use of LIFT was a vital supplement to ensure support reached those who didn’t proactively reach out for support.

By using the insights from their data that LIFT generated, the council could quickly identify groups of residents who fit specific eligibility criteria for cash first payments.

The council used LIFT to filter for specific groups, including:

  • Households with children
  • Pensioners
  • Single households
  • Working households
  • Households with a disability
  • Those worst off in terms of income to expected expenditure
  • Households missing out on the winter fuel payment in winter 2024/25

Once identified, these residents were sent vouchers in the post that they could redeem for a cash payment at their local post office.

The results: efficient and targeted delivery

Using LIFT as the central engine for identification, the council has successfully allocated a total of £9,098,355.

This data led approach enabled the distribution of 77,081 vouchers to residents who otherwise might not have come forward for support.

 

Takeaways for the Crisis and Resilience Fund

The approach taken by Tower Hamlets illustrates how councils can proactively allocate scarce discretionary funds at scale. By using LIFT to establish a system for rapid, data led identification, the council has moved away from reactive and time consuming data exercises.

This model shows other local authorities how to meet the operational requirements of the crisis and resilience fund by delivering a cash first approach that is both accurate and administratively efficient.

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CRF blog-15Jan26
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