Rochdale council spent more than £500,000 on helping people with housing costs
These payments are top-ups given out by councils to help people on benefits experiencing financial difficulty with housing costs, with the aim of preventing an increase in homelessness
Photo: Nicholas.T.Ansell/PA Wire
Rochdale Council spent more than half a million pounds on helping people on benefits with their housing costs.
In the year to March 2022 the council spent £540,980 in discretionary housing payments (DHPs), data from the Department for Work & Pensions has revealed.
These payments are top-ups given out by councils to help people on benefits experiencing financial difficulty with housing costs, with the aim of preventing an increase in homelessness.
They may go towards paying rent where housing benefits or Universal Credit do not cover the full amount, or to cover the cost of other necessary housing expenses, such as rent deposits.
Central government allocates money to councils to cover the cost of DHPs.
However in many cases it falls short of what actually gets paid out and Rochdale spent 1% more than its allocation.
In Rochdale the more than half a million pounds in payments was a decrease from the year before, 2020/21, where the council spent £669,941.
Rochdale Borough Council said the government reduced funding which accounts for the difference.
A spokesperson for the council said: “The council was allocated £536,744 of discretionary housing payments (DHPs) in the financial year 2021-22. This was a reduction on the previous allocation of £702,642 in 2020-21.
“Their purpose is to provide short-term relief and make up for any shortfall between benefits and the full rent charge.
“In certain circumstances they may also be used to help with rent arrears and towards moving costs. Payments are issued to residents who are in receipt of housing benefit or have housing costs as part of universal credit payments.”
Across Greater Manchester local authorities spent a total of £7.7m in discretionary housing payments (DHPs) in the year to March 2022, data from the Department for Work & Pensions has revealed.
Manchester Council spent far more than any other local authority in our region, with DHPs there costing a total of £2.8m, while Oldham spent £603,449 and Stockport £502,438.
Benefit reforms are seen as the main reason that people are awarded DHPs, with 57% of cases relating to the issue.
Just over a third (34%) of DHPs are paid out to people who are struggling as a result of the removal of the spare room subsidy, the so-called ‘bedroom tax’.
Local housing allowance reforms account for 11% of claims, the benefit cap for 8%, and a combination of all three for 3%.
That leaves 43% of DHPs which are awarded for non-welfare related issues.
