Local authorities in Scotland to receive £57.9 million funding for Discretionary Housing Payments

Almost £58 million will be spent mitigating the harmful impact of the UK Government’s welfare cuts on households across Scotland. Scottish Government says this represents a £7.7 million increase in funding compared to 2016/2017.

The £7.7 million increase in funding for Discretionary Housing Payments (DHPs) next year comes as the Scottish Government takes full responsibility for DHP funding, including £18.5 million transferred from the Department of Work and Pensions as part of a negotiated 3 year settlement.

The £57.9 million made available to local authorities will be split as follows:
• £47 million to fully mitigate the bedroom tax for more than 70,000 households – up from £45.4 million.
• £10.9 million, up from £4.8 million, to help mitigate other UK Government policies such as the Benefit Cap and Local Housing Allowance rates.

Social Security Minister Jeane Freeman has written to all local authorities confirming their funding for the coming year. She said:
“We realise how damaging the UK Government’s punitive policies are, particularly the bedroom tax. That is why we have taken action to ensure DHPs are available to all affected households so no one has to pay it and we are committed to abolishing it as soon as practically possible.

“We want to protect low income families and households across Scotland which is why we have increased the funding available in the first year we have had full responsibility for Discretionary House Payments. However we would much rather be using this money to positively lift people out of poverty”.

More information on the Scottish Government website – Bedroom Tax Mitigation.