Payments to Address Housing Benefit Shortfall

The government is considering increasing the amount of money it provides for tenants who face a shortfall between their housing benefit and rent.  Inside Housing understands the discretionary housing payment, which is paid by councils, will increase in next week’s comprehensive spending review. Sources close to the Department for Work and Pensions said it is also working on a formula that will mean the lion’s share of the fund will focus on London.  The government already increased the fund from £20 million a year to £60 million by 2012/13. Mayor of London Boris Johnson has been lobbying the government to focus the majority of the DHP on London, which will be worst hit by planned cuts to housing benefit. A DWP spokeswoman declined to comment before the publication of the spending review. Read the full story on Inside Housing.