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Local Authorities underspend on Discretionary Housing Payments for 2020/21

The Department for Work & Pensions has published data on the Use of Discretionary Housing Payments (DHPs) for the year to 31 March 2021.  The information is based on returns from 327 of 336 Local Authorities.  Key points are:

  • The total number of DHP awards given out in the financial year was 251,667
  • Local Authorities spent £171m on Discretionary Housing Payments, including any additional funding they provided, representing 98% of their allocated funding compared with 103% in the previous financial year
  • Excluding any additional funding they provided, Local Authorities spent 94% of their allocated funding, compared to 98% in the previous financial year
  • 63% of DHP expenditure was recorded as being related to welfare reform, with Removal of the Spare Room Subsidy accounting for the greatest share of expenditure (25%) and
  • Over a quarter (27%) of DHP expenditure was recorded as being related to moving to alternative accommodation.