Council hands out more than £150,000 in extra housing help

The Local Government Association said the coronavirus pandemic has exposed the level of pressure on low income families, with many councils across England and Wales spending more than their allocated pot to help struggling benefit claimants.

Department for Work and Pensions data shows West Lindsey District Council paid £156,500 in Discretionary Housing Payments in 2020-21.

The cash is intended to provide those already in receipt of housing benefits and Universal Credit housing costs with extra help such as covering rent shortfalls or the costs of moving to more affordable properties.

It means West Lindsey District Council spent 72 percent of the £217,575 pot given to the authority by the Government.

That allocation was a 32 percent increase on the previous year, the figures show, and 408 applications were successful across West Lindsey in 2020-21 – 26 fewer than the year before.

A spokesman for the council said: “ We have been allocated £120,406 for 2021-22 and in Quarter 1 of this allocation period we have spent £30,500 so we are on target to spend the full allocation this year. We received 135 applications in Quarter 1 which is 6 more than at the same date last year."

Across England and Wales, councils spent £171 million on Discretionary Housing Payments, with 103 of 327 local authorities spending above the Government’s contribution despite a £40 million increase in funding on the previous year.

A spokesman for the LGA said: "The fact that many councils put additional funding into Discretionary Housing Payments on top of their government allocation during a year when we have seen other protections brought in due to the Covid-19 pandemic, such as a ban on evictions and the £20 per week increase to Universal Credit, shows the level of pressure likely to be on low-income households.

“We are concerned about what the impact the removal of these protections will have on low-income households, many of whom have built up debt and arrears during the pandemic."

They added that Discretionary Housing Payment funding for the current year had dropped back to pre-pandemic levels.

“The LGA would like to see a review of the Discretionary Housing Payment scheme, alongside other safety net funding, to ensure councils have adequate, sustainable funding and can provide a safety net for their residents without seeing other services affected,” the spokesman said.

The Government said it has taken unprecedented action to protect renters during the pandemic, including banning evictions and increasing the local housing allowance rates, used to calculate housing benefits.