Social Security (Scotland) Bill Stage 1 Debate Briefing

We have concerns that the bill does not put Discretionary Housing Payments (DHPs) on statutory footing. By putting a requirement for local authorities to have a DHP scheme into the primary legislation of this bill, we reinforce this as a requirement. DHPs are vital to provide protection for households struggling with housing costs, and at risk of homelessness.

DHPs are vital to preventing homelessness

We know that many households in Scotland have difficulty meeting their housing costs for a number of reasons, and need assistance to avoid risking unnecessary eviction. The most common problem Shelter Scotland clients came to us with last year, was “struggling to pay or afford housing costs”. DHPs are essential in ensuring households can keep their homes.

DHPs are used by local authorities to supplement housing benefit payments to households in exceptional circumstances; typically, where housing benefit falls short of actual housing costs by a significant amount. This top-up can allow households facing a major shortfall to adjust to new circumstances or to head off hardship and prevent homelessness.

The availability of a fund to deal with exceptional circumstances is a crucial part of the social security system. Last year, around 107,000 DHP applications were received by local authorities and over £51 million was awarded.

DHPs have also been used by the Scottish Government to mitigate the impact of certain welfare cuts, such as the removal of the spare room subsidy (Bedroom Tax), on households in Scotland. The largest portion of DHP funds has been used in recent years to mitigate the “bedroom tax”. Although the intention in the future is to end the bedroom tax in Scotland at source.