Record investment in housing support
A record £99 million will be invested in Discretionary Housing Payments (DHPs) this financial year to help thousands of households struggling to afford housing costs in Scotland.
During Challenge Poverty Week, Housing Secretary Màiri McAllan highlighted the payments as a ‘lifeline’ for thousands of families and individuals. Funded by the Scottish Government and paid out by local authorities, the DHP scheme is designed to provide financial support to low-income households, delivering vital action to reduce poverty, safeguard tenancies and prevent homelessness.
The Scottish Government has budgeted a record £99 million in 2025-26 to deliver the payments, which are primarily used to help people affected by the UK Government’s under-occupancy charge (‘bedroom tax’) and benefit cap. In last month’s Housing Emergency Action Plan, the Housing Secretary allocated a further £2 million towards the budget for DHPs.
On a visit to Fife Gingerbread, a charity which supports lone parents and families in times of need, Ms McAllan said: “In a country as wealthy as Scotland, it is unacceptable that anyone, and particularly any child, should live with the strain and harm of poverty.
“While Scotland is now the only part of the UK where child poverty levels are falling, there remain many complex drivers of poverty – not least the high levels of inflation in the UK driving increases in the costs of basic essentials such as food, energy and housing.
“Last year 94,000 households were supported by the Discretionary Housing Payment scheme in Scotland. These payments are a vital lifeline for people in emergency situations and acute financial distress, where they cannot afford the cost of putting a roof over their head.
“The UK Government’s punitive welfare policies are driving the problems households face but the Scottish Government is doing what it can to mitigate the impact on people, from the £99 million investment in Discretionary Housing Payments this year to effectively scrapping the UK Government’s two-child limit in Scotland from March next year.
“The First Minister has made tackling child poverty among this government’s defining missions. However, we can only do that with a social security system that provides the support that people need in the hardest of times.
“The Scottish Government is committed to putting more money in people’s pockets and delivering real savings to support families. The UK Government must make the same choices.”
Fife Gingerbread CEO Laura Millar said: “During Challenge Poverty Week, we’re proud to welcome the Cabinet Secretary for Housing. Discretionary Housing Payments are an important tool to help struggling families with their housing costs, and we welcome the Scottish Government’s commitment to invest a further £2m to support households in temporary accommodation to find settled homes as a good next step.
“Children across Scotland deserve to grow up in safe, happy homes and we will continue to amplify their voice to champion for change.”
