Tag: Discretionary Housing Payment

More support for families at risk of homelessness

£2 million funding boost for housing payment scheme

A scheme helping low-income households avoid homelessness will receive an additional £2 million this year.

The Discretionary Housing Payment scheme provides direct financial support to low-income households struggling with housing costs and helps people to retain their tenancy in the rented sector.

The additional funding takes this year’s investment in the scheme to a record £117 million. This will help an estimated 100,000 households in Scotland sustain their tenancies. The scheme is the main way the Scottish Government mitigates the impacts of the UK Government’s ‘bedroom tax’ and benefit cap.

Cabinet Secretary for Social Justice and Housing Shirley-Anne Somerville said: “Our Discretionary Housing Payments are a vital lifeline to families at risk of losing their home and help protect people from the UK Government’s damaging bedroom tax and benefit cap policies.

“Our scheme is delivering and providing direct support to low-income households – helping to reduce poverty, safeguard tenancies and prevent homelessness. In Scotland, we offer a level of support not available elsewhere in the UK, and our different approach is working.

“However, the UK Government’s decision to freeze the support given to private renters at 2024 levels means people are struggling to pay their housing costs – this is driving homelessness and putting families at serious risk.

“I am extremely disappointed the Chancellor chose not to use his Budget to end the freeze and give households the breathing space they desperately need.”

Extra funding to support tenants as Holyrood backs emergency measures

The Scottish Parliament has unanimously supported new emergency measures to help people in Scotland get through the crisis caused by the COVID-19 (coronavirus) outbreak.

The Coronavirus (Scotland) (No.2) Bill, now passed by Parliament, gives powers to Scottish Ministers to temporarily intervene and manage care home services where there is a serious risk to the life, health or wellbeing of any person in that home for any reason connected with COVID-19.

The Bill also includes an additional £19.2 million investment in the Carer’s Allowance Supplement, the introduction of notice to leave periods for students in purpose-built student accommodation, and additional protections for those facing bankruptcy.

During the debate, Housing Minister Kevin Stewart has also confirmed an additional £5 million will be made available to local authorities through Discretionary Housing Payments, to support tenants who are now under severe financial pressures (see below).

There are also legislative changes in areas including non-domestic rates relief, proceeds of crime and the wider operation of Scotland’s criminal justice system. The Bill also ensures that COVID-19 grant funding goes to those companies that pay their fair share of tax by excluding those who seek to minimise their tax arrangements to the detriment of the wider economy.

Constitution Secretary Michael Russell said: “Scotland remains in an unprecedented situation. This legislation provides time-limited measures that will further strengthen our ability to prioritise work tackling the coronavirus pandemic, and support those in Scotland facing real hardship as a result.

“Whether it is taking action to safeguard the population’s health such as the measures relating to care homes, helping people in debt or students with accommodation costs,  we will continue to do all we can to help Scotland get through this most testing of times.

“In a spirit of cooperation and consensus we have worked across parliament and with all parties as much as possible as we take these important steps to tackle the impact of this ongoing crisis.”

£5 million for Discretionary Housing Payments

Housing Minister Kevin Stewart has announced £5 million additional investment to support tenants under financial pressure during the COVID-19 outbreak.

The extra funding, announced during the Stage 3 debate of the emergency Coronavirus (2nd) (Scotland) Bill, will go to local authorities to provide support to tenants through the Discretionary Housing Payment (DHP) scheme. This takes the total funding from the Scottish Government for DHPs to almost £16 million – as well as £60 million funding budgeted to mitigate the impact of the bedroom tax.

Mr Stewart said: “We all know that the wider impacts of Covid-19 are increasing pressures on households and leading to greater financial hardship, including paying rent.

“Many more people will now be on benefits for the first time and be subject to the UK Government’s benefit cap while others will have seen their household income decrease substantially and  may be struggling to pay their rent.

“We have been looking closely at how to support people during the crisis and I am pleased to announce that we are increasing the amount we have made available for other DHPs – those that are available outside of our full mitigation of the bedroom tax – by a further £5 million to almost £16 million. This will support tenants who are now under severe financial pressures and where the UK welfare state is not providing the safety net it should.”

The funding announced today takes to £77.1 million the amount of Scottish Government Discretionary Housing Payment fund to support tenants struggling with their housing costs or affected by the bedroom tax, where Universal Credit or Housing Benefit does not cover the cost of their rent.

That includes: Bedroom tax mitigation, £60 million; other DHPs paid already, £10.9 million; Administrative funding of £1.2 million; and today’s announcement of a further £5 million for DHPs.

First Minister Nicola Sturgeon will unveil details of a ‘route-map’ towards easing the country’s lockdown restrictions later today.