Housing Minister Paul McLennan announced more than £90 million will be set aside to aid local authorities in assisting households facing a tough time in 2024-25. This help is aimed at those whose rent isn’t fully covered by the local housing allowance or families grappling with house costs.
Scotland’s own government, through the Discretionary Housing Payments (DHP) scheme, will provide this funding. From Monday, this scheme will be entirely under Scottish Government control.
The Scottish Government was clear that they’ll also support those affected by bedroom tax or the UK Government benefit cap and those families who need a rental deposit.
McLennan explained that this fund will bridge the gap between what folks need and what they end up receiving from the UK Government in benefits. He said: “This can be the difference between a family thriving, or a family experiencing financial hardship.
“We are clear that this is the right thing to do to support households but the Scottish Government should not be forced to step in and divert money from our own housing and anti-poverty policies because of UK Government welfare reforms.”
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Satwat Rehman, boss of the One Parent Families Scotland charity, praised the measures. Rehman said: “The Scottish Government is to be commended for taking these mitigating measures as we recognise it continues to spend massive sums compensating for welfare cuts made the UK Government.
“Mitigating the benefit cap is absolutely the right thing to do. The increased funding and improved support for families affected by the benefit cap will be greatly welcomed by the many single parents who have been pushed into further hardship by this policy.
“Seventy-four per cent of all capped households in Scotland consist of single parents with children 92% of whom are women.”
The charity has now called for the UK Government to fully scrap the benefit cap. While responsibility for the DHP scheme was devolved in 2017, the Scottish Government stated it was regulated by the UK’s Discretionary Financial Assistance Regulations 2001, with that provision being revoked in April.
A UK Government spokesperson added: “We are spending over £30 billion in 2023/24 on housing support, which includes over £1.8 billion in Scotland.
“In recognition that some households may need additional support with housing costs, the UK Government continues to provide funding for Discretionary Housing Payments, which have been devolved to Scotland since April 2017.”
The UK Government added that the benefit cap ensures the welfare system remains “fair”.
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