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05 February 2015

Reduction to Discretionary Housing Payment

A DWP circular has confirmed that the discretionary housing payment (DHP) allocation for local authorities in 2015/2016 has been cut by £40m, dropping from 2014/15’s £165m level to £125m for the forthcoming financial year.

HB Circular S1/2015 states that the total government contribution towards DHPs in 2015/2016 will be £125m, allocated in four strands:

  • local housing allowance reforms - £25m;
  • core funding - £15m;
  • removal of the spare room subsidy - £60m; and
  • benefit cap - £25m.

HB Circular S1/2015 is available at the following link: http://bit.ly/1EZqWmB