97 per cent of annual Discretionary Housing Payments fund already committed

Scottish GovernmentLocal authorities in Scotland have spent or committed 97 per cent of the total estimated funding for Discretionary Housing Payment (DHP) awards during 2015/16.

New statistics into the DHP scheme, which provides financial assistance towards housing costs for those claiming housing benefit, revealed that the total value of DHP awards spent or committed so far for 2015/16 was £46.9 million (97 per cent) of the total estimated funding of £48.3m for 2015/16.

Committed spend occurs, for example, if a local authority decides to award funds for the whole of 2015/16, but this may be paid out in instalments throughout the year rather than in one lump sum.

The figures, released yesterday by Scotland’s Chief Statistician, also show that local authorities made over 100,000 DHP awards during the period 1 April to 31 December 2015.

The average award value was £463, typically to cover shortfalls in housing costs through to 31 March 2016.

Local authorities received around 111,000 applications for DHPs and processed around 108,000 of these, determining whether or not to make an award. This figure is likely to include a sizeable number of cases affected by the Removal of the Spare Room Subsidy (RSRS) (the “bedroom tax”), where local authorities have continued to make up the shortfall in tenants’ weekly rent through the use of DHPs.

The Scottish Government is committed to reimbursing local authorities for the impact of the RSRS and the final amount will be calculated and announced after the end of the 2015/16 financial year.

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