Rule change sees councils face surge in demand for discretionary payments
Tenants drain help fund
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Councils are facing a run on a budget set aside to help impoverished tenants bridge the gap between their rents and housing benefit, following controversial rule changes.
The hardest-hit councils have seen demand for discretionary payments double, following the introduction of the changes in April this year, Inside Housing has learned.
The payments are designed to be made to residents when they need help to meet housing costs in addition to any benefit they receive.
More than 63,000 private tenants faced benefit cuts after the Rent Service drew up 152 new ‘localities’ to determine housing benefit rates.
The change will see the benefit calculated from average rents in the localities – which means residents in areas with high rents could lose out.
At South Lakeland Council, which has an average of 60 applicants for the discretionary payment each year, benefits staff have reported a doubling of rescue handouts. One staff member described the rental allowance figures as ‘a lot lower’ than before the locality change.
‘It’s very rough justice. You’re either quietly delighted, or you’re finding that there’s nowhere in the area where people can afford to live.’ Liz Phelps, Citizens Advice
Mark Edmondson, revenues and benefits manager at South Ribble Council, where 60 per cent of claimants faced housing benefit cuts, said it had seen a jump in demand for help.
‘We’ve got about 600 private tenant claimants and it’s a disaster for about 300 people,’ he said.
Carrick Council said it expected to spend nearly £44,000 on discretionary payments this year – up from £24,000 last year.
Liz Phelps, social policy advisor at Citizens Advice, said residents faced a postcode lottery.
The Department for Work and Pensions has been forced to take another look at how it calculates the changes after losing a court case last month.
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Readers' comments (2)
terence woodward | 20/09/2008 6:03 pm
I Applied for a discretionary payment from east lindsley council and was directed to a housing benefits officer, who helped me with the form. The total of my expenditure was more than my income by £5.00, but I recieved a letter stating my expenditure was less than my income so I was refused payment. As I cannot appeal against this decision what are my options, I have shown them up before as they were wrong in giving decision in the past and admitted it. Although the benifits officer comented at the time my income was less than my expenditure they will not accept it and say there word is final
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david hambly | 23/04/2009 10:26 am
The reasons for these changes are very clear, firstly it is about saving money but it is also about re-engineering where the poor and the unemployed are allowed to live. I currently live in St Albans and rents here are very high, the changes to housing allowance will force the few on benefits out of the city and into more suitable (cheap) slum housing in other places. You need to understand that such places as I live will not tolerate the lower orders living in their space. We should have a sign up that say's bankers, doctors professionals only. Unemployed people piss off and live with people more like yourself. We don't want people on housing allowance any where near our smart parks, golf courses and fine restaraunts. We are deeply offended at ragged tom looking through the window as we feast on the best money can buy. You need to understand that this way of calculating housing allowance allows people in power to determine where you can live and trust me on this it will not be Richmond on Thames, St Albans or Kensington. Know your place.
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