The Harrow Council will spend an additional £1.2million on helping residents who have been hit by reductions to housing benefit, if new plans are approved by Cabinet this week.
Recent changes to housing benefit mean that council tenants who are deemed to have surplus bedrooms will see their housing benefit reduced. Coupled with the benefit cap due to be introduced later this year, this will mean that hundreds of households in Harrow will have to pay out extra money, or move to a smaller home.
To try to mitigate this, the Government has increased the Discretionary Housing Payment (DHP) that it gives to Councils to help with ‘housing costs’ for some residents in financial hardship. This year Harrow has been given £1.2million – a 400 per cent increase on last year.
The increase is a result of the fact that nearly 600 households will be affected by the new size criteria and 700 by the benefit cap.
Cabinet will be asked to approve changes to the Council’s DHP policy – in light of the increased funding and growing number of people affected by welfare reform – at its meeting on July 18.
Harrow Council says it can use the money to help with:
Topping up the weekly rent shortfall, particularly for families who have seen housing benefit reduced
Rent deposits
Rent in Advance
Removal Costs.
In particular, the money could help families with children who will very soon reach the age where the Government deems they need an extra room (10 if different genders) – but in the meantime they must endure a reduction in payments.
Harrow Council Leader and Portfolio Holder for Finance Cllr Thaya Idaikkadar said: “If a family has children aged eight or nine it might not make sense for them to move to a smaller property, when in a year or two they will need to move back to a larger one. But in the meantime, they face a huge hole in their budget. Harrow Council is committed to supporting its residents through these tough financial times and we are determined that these measures, plus other efforts the Council is making, will ensure that those most in need get the help they require.”
DHP is one of a range of measures Harrow Council is offering as part of its Harrow Help Scheme, to support those hit by benefit changes, alongside an Emergency Relief scheme, a Hardship Fund and Xcite Funding.
DHP is a ring-fenced grant allocated from central government to allow Councils to provide additional financial assitance for housing costs to Housing Benefit households. Historically it has been paid in exceptional circumstances to support residents in financial hardship on a short-term basis.
