Councils Underspend on Struggling Households by £8m

Millions of pounds earmarked by the government to help families struggling to pay for housing remain untouched by local authorities. New figures from the Department for Work and Pensions show that £8.4m – more than a quarter – of the £30m allocated by the department in 2011-12 for discretionary housing payments (DHPs) was not spent by councils. While the government has increased the amount set aside for DHPs – with an extra £10m in 2011-12 and a further £30m this year, bringing the total now to about £60m – the amount of underspend has also risen, from nearly £1m in 2010-11. The new figures raise further doubts about the effectiveness of the system. Housing specialists have also suggested that those who need it most may not be aware of the help available. DHPs are available to households in financial hardship entitled to housing benefit or council tax benefit that need further help paying rent or other housing bills. Ministers see DHPs as a safety net to protect families affected by benefit changes but it is up to councils to decide whether to award a DHP, and how much to pay. In Nottingham, an underspend has been attributed to claims not meeting the qualifying criteria. Read more on the Guardian website.