Cornwall Council forks out £455k in emergency housing payments to people hit by welfare reforms
There is a warning 'more action will be needed' to help struggling renters
It has been revealed that Cornwall Council paid out £455,000 last year to help people struggling with housing costs because of welfare reforms.
A leading think tank has warned more action will be needed to help struggling renters, as hundreds of thousands fewer people are employed across the country since the start of the coronavirus pandemic.
Department for Work and Pensions figures show Cornwall Council paid £984,100 in Discretionary Housing Payments to claimants in the year to March.
Of that, £454,900 went to helping people who were in difficulties because of reforms in the welfare system.
The payments are given to people who qualify for Housing Benefit or the housing element of Universal Credit, and who are struggling with housing costs.
The Government sets DHP funding for local authorities each year, with councils having to dip into their own funds if demand exceeds their allocation.
Councils across England and Wales paid out £132 million in 2019-20 – but 24 authorities did not supply figures, meaning the total could be higher.
More than 40% of councils had to spend more than the amount they got from the Government.
Last year, Cornwall Council exceeded its government allocation by 1%, or £12,000.
In May, the Government announced funding for councils across the two countries would increase by £40 million in 2020-21, to £179.5 million, citing “affordability pressures” in the rental market.
Cornwall Council is set to receive £1.43 million, an increase of 47% on last year.
"In 2019/20 the Department for Work and Pensions provided Cornwall Council with total Discretionary Housing Payments grant funding of £972,059, the DHP grant is ring fenced and any underspend must be returned to the DWP at the end of each financial year.
"Cornwall Council uses the annual grant allocation to provide additional support to low income families on a number of fronts. These include mitigating the impacts of welfare reform changes, helping residents to secure and maintain affordable tenancies and providing short term assistance where additional financial help is needed.
"If our residents are struggling to meet a shortfall between their rent and the amount covered either by Housing Benefit or the housing cost element of Universal Credit we would encourage them to get in touch with us about the Discretionary Housing Payment scheme."
Cornwall Council
More information and an application form for discretionary housing payments are available on the Council’s website or by calling 0300 1234 121 between 8.30am and 5pm Monday to Friday.
In Cornwall, the benefit cap alone led to £70,600 of payouts last year.
The cap, which was introduced in 2013, limits the total amount of benefits a person can receive to £13,400 per year, or £20,000 for a couple or single parent.
A further £87,600 went to people affected by the so-called bedroom tax, which reduces housing benefits for people with a spare bedroom, and £296,700 because of other welfare reforms, or a combination of the bedroom tax and benefit cap.
In total, 2,300 payments were made to claimants during the year, averaging £428 apiece.
“We have provided over £1 billion in Discretionary Housing Payment funding since 2011, enabling local authorities to support households that need additional help.
“Funding is allocated in consultation with local authority bodies based on local pressures and payments are intended as transitional while longer term solutions are found.
“In addition, this year we have increased Local Housing Allowance rates, including the Shared Accommodation element, benefiting over 1 million households by £600 a year on average.”
A DWP spokesman