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Use of Discretionary Housing Payments dropped last year despite pandemic, figures show

The use of funding allocated to local authorities to help those unable to keep up with housing costs dropped last year despite widespread financial strain during the COVID-19 pandemic.

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The use of funding allocated to local authorities to help those unable to keep up with housing costs dropped last year despite widespread financial strain during the COVID-19 pandemic #UKhousing

Government figures released on Thursday show that local authorities in England and Wales spent 94% of their allocated Discretionary Housing Payments (DHPs) in 2020/21 compared to 98% the previous year.

DHPs can be paid to those entitled to housing benefit or the housing element of Universal Credit who face a shortfall in meeting housing costs.

Councils can decide whether to give a DHP, how much will be paid and for how long the claimant will receive the payment.

The data, published by the Department for Work and Pensions (DWP), showed that local authorities spent £171m on a total of 251,667 DHPs in 2020/21.


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Less than half (48%) of local authorities spent between 95% and 105% of their allocated funding, down from 65% in the previous financial year. Some councils top up their DHP pot with funding from their own coffers.

More than a third (38%) spent less than 95% of the their allocated funding, compared to 19% in 2019/20.

For local authorities that gave details of the benefits claimed by their DHP recipients, more than half (55%) of awards were made to Universal Credit claimants.

Millions had to turn to the benefit system for the first time last year amid losses of income brought on by the coronavirus pandemic.

When challenged on the support available for those who were still struggling to make ends meet despite welfare payments, the government often pointed to DHPs.

 

When broken down by region, local authorities in London spent the greatest proportion of their combined allocations – 106% in inner London and 104% in outer London.

Local authorities in the East Midlands spent the lowest proportion of their combined allocations at 82%.

More than a quarter (27%) of DHP expenditure was related to moving to alternative accommodation, while 17% went towards helping with short-term rental costs while the claimant sought employment.

Inside Housing analysis from January 2021 found that by the midpoint of the financial year, councils had spent 40% of their allocation, down from 49% in the previous year.

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