Contingencies Fund Act 2021

The Contingencies Fund Act 2021 (c. 9) is an act of the Parliament of the United Kingdom which allowed for a temporary increase in the maximum capital of the United Kingdom's contingency fund from 2%, as set out in Section 1 of the Contingencies Fund Act 1974, to 12%.

It was introduced by Chancellor of the Exchequer Rishi Sunak in response to the ongoing effects of the COVID-19 pandemic.

The Contingencies Fund was established in 1862 by HM Treasury,[2] and allows governmental departments to access cash advances when money for urgent matters is likely to achieve parliamentary approval, but is needed quickly.

[3] Usually, the Contingencies Fund Act 1974 requires that the permanent capital of the fund not exceed 2% of the authorised supply expenditure of the previous financial year.

[6] The bill was introduced in the Commons for its first reading on 9 March 2021.