Discretionary Housing Payment Allocations announced

On 30th January 2015, the Department of Works and Pensions (DWP) announced the value of the Discretionary Housing Payments (DHP) for local authorities. The circular gave details of the government contribution and overall expenditure limit for DHPs for local authorities in the financial year 2015 to 2016.

The overall funding for 2015/16 is £125 million. This comprises of funding for support areas of:

  • Core funding (£15m)
  • Local Housing Allowance (LHA) (£25m)
  • Removal of the Spare Room Subsidy (RSRS) (£60m)
  • Benefit cap (£25m)

The government has previously committed to maintaining the level of funding to support those affected by the RSRS and this will remain at £60 million.

As the table below shows, from the total, £29.3 million will be made available to local authorities in the three northern regions to administer. This represents 23.5% of the total allocation and a reduction of 16.3% on the 2014/15 allocation compared to an overall reduction of 24.5%. Regional analysis carried out by Northern Housing Consortium shows that by comparing allocations with the number of households (2014 estimates), the average allocation per household in Britain is £4.70, the figure in the north is £4.65 with Yorkshire and the Humber’s figure at £3.99. This compares with London’s allocation of £10.06 per household.

DHP allocations breakdown
RegionGovernment ContributionOverall limit (2.5x)Households 2014Government contribution/no. of h’holds%change
North East£5,898,965£14,747,417975,749£6.05-9.3%
North West£14,342,888£35,857,2283,047,250£4.71-18.2%
Yorkshire and the Humber£9,132,816£22,832,0452,288,745£3.99-17.4%
East Midlands£6,199,435£15,498,6002,034,423£3.05-15.5%
East of England£7,907,841£19,769,6152,602,293£3.04-23.8%
London£33,279,938£83,199,8553,309,570£10.06-35.5%
South East£11,050,941£27,627,3673,728,320£2.96-31.5%
South West£6,884,479£17,211,2082,405,232£2.86-24.0%
West Midlands£10,272,154£25,680,3972,461,046£4.17-19.3%
Scotland£13,331,287£-2,401,798£5.55-12.5%
Wales£6,699,256£16,748,1451,318,569£5.08-15.1%
All North£29,374,669£73,436,6901,318,569£4.65-16.3%
Total£125,000,000£279,171,87726,572,995£4.70-24.5%

In terms of the northern local authorities, as the map below shows, seven northern local authorities had a contribution to household ratio of over £7 whereas lower ratios appear to be concentrated in North Yorkshire and parts of Lancashire.

DHP contributions by number of households

DHP contributions by number of households

If you would like more information on the data in this article or if you would like to discuss how Northern Housing Consortium can help you with your data analysis needs, contact Barry Turnbull at barry.turnbull@northern-consortium.org.uk.