DWP Capped Access to Discretionary Housing Fund

Councils asking for additional cash to support tenants hit by welfare reform had their funding capped because the government believed they would buy their way out of the bedroom tax. Iain Duncan Smith offered councils £20 million in additional discretionary housing payment funds in July because of ‘exceptionally’ high demand for the emergency help as a result of the bedroom tax. After bids from 86 local authorities, 27 were refused the full funds they had requested, with 18 turned down on the basis that a full award would allow ‘excessive buy out’ of the policy, a response to an Inside Housing Freedom of Information request has revealed. Eventually, only £12.9 million of this pot was allocated, with the remaining £7.1 million going unspent. The DWP has previously cited this underspend as evidence that DHP funding was sufficient to meet demand. Read more on Inside Housing.