Support for struggling households

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.”

Applying for a Discretionary Housing Payment – mygov.scot

Charities attend Amazon support workshop in Dunfermline

Two charities in Fife were welcomed to Amazon’s fulfilment centre in Dunfermline to gain fresh ideas and practical support to help develop their logistics and operations. 

The event, organised by Pilotlight, brought together Fife Gingerbread and Big House Multibank with the team at Amazon in Dunfermline. Pilotlight is an organisation that connects business experts with charities to help deliver greater social impact. 

More than 30 Amazon employees from Dunfermline took part in a day of collaborative problem-solving sessions. The charities shared some of the challenges they’re currently facing and Amazon employees worked in teams to come up with practical, strategic solutions, drawing on their professional skills and experience. 

Kirsten Harrower, an Amazon employee who took part in the event, said: “It was an amazing experience to apply our skills in support of two incredible charities that do so much for our community.

“It felt great to be part of something that can make a real difference.”

Jamie Strain, General Manager from Amazon in Dunfermline, added: “We’re proud to support Fife Gingerbread and Big House Multibank and events like this are a great way to use the skills of our team to give back.

“We’re committed to playing a positive role in the communities where we live and work.”

Linsey Proctor, from Fife Gingerbread, said: “We’re grateful to the Amazon team for giving their time and energy and for continuing to strengthen their relationship with us.

“The ideas shared will help us shape our future plans and move forward with confidence.”

Community donations and employee volunteering are just two of the ways Amazon supports the communities where it operates.

Amazon co-founded The Big House Multibank in Fife with former UK Prime Minister Gordon Brown to support families in need. The Multibank network has now donated more than 8 million surplus goods to over 600,000 families across Scotland, Wales, Greater Manchester, London, Tees Valley and Birmingham. 

Amazon has supported more than one million students across the UK with free STEM education programmes through Amazon Future Engineer and helps community organisations transport meals and other essentials to families in need through its pro bono logistics programme, Amazon Local Good.

Amazon partners with Comic Relief and is the official home of the charity’s iconic Red Nose. Together with its employees, customers, and partners, Amazon has raised over £4.8 million to fund projects that support people across the UK, and around the world.

Helping families with their living costs

Extra funding to help offset UK Government benefit cap

The Scottish Government is providing £8.6 million in direct support for people affected by the UK benefit cap as part of its work to tackle child poverty.

An estimated 4,000 families with around 14,000 children are now able to apply for extra financial support through their local council’s Discretionary Housing Payments scheme.

Social Justice Secretary Shona Robison said: “We are increasing funding to help bridge the gap between what people need in benefits from the UK Government and what they actually receive. Eligible households could be £2,500 better off on average per year as a result.

“We will spend up to £84 million in 2023-24 on Discretionary Housing Payments to mitigate not only the UK Government’s bedroom tax and the on-going freeze to Local Housing Allowance rates, but now also the benefit cap which is pushing families into hardship.

“Our child poverty targets are ambitious and that is why we are choosing to invest significantly more in social security than the funding we receive from Westminster and helping to mitigate the damaging impact of UK Government welfare cuts.”

John Dickie, Chair of the Child Poverty Action Group, said: “Mitigating the UK benefit cap is absolutely the right thing to do. Support for struggling families shouldn’t have an arbitrary limit that pushes children into deeper poverty.

“It’s now vital that everyone affected by the benefit cap applies to their local authority for a Discretionary Housing Payment to replace as far as possible the cash support removed by the cap. The Scottish Government has done the right thing, now the UK Government must act to scrap the cap altogether.”

Laura Millar, Strategic Manager at charity Fife Gingerbread, which helps lone parents and families in need, said: “Last year Fife Gingerbread supported the ‘Scrap the Cap’ campaign calling on Westminster to end the benefit cap and the financial hardship this causes.

“Therefore, the Scottish Government’s commitment to empower local authorities to mitigate the impacts of the benefit cap using Discretionary Housing Payments is a positive step.

“Although the number of households affected across Scotland may be relatively small this is an important measure. The greatest risk is that households may be unaware of their entitlement, and every year millions of pounds of benefits go unclaimed. Therefore, we must all raise awareness of this announcement to ensure those most in need of support receive it.”



Funding for benefit cap mitigation by Scottish local authorities through Discretionary Housing Payments is as follows:

2022-23£2.6 million
2023-24£6 million
Total£8.6 million

The benefit cap is a UK Government policy which limits the total amount of benefit that most working age people can receive, even if their full entitlement would be higher.

Discretionary Housing Payments are administered by Local Authorities to support with housing and living costs.

Further information about support available for people during the cost of living crisis can be found at gov.scot/costoflivingsupport.