Discretionary Housing Payments (DHPs)

Discretionary Housing Payments (DHPs) support individuals on low incomes with housing costs. The Scottish Government provides funding to local authorities who deliver the grants and are responsible for managing the budget throughout the year.

To be eligible for DHP claimants must be in receipt of either Housing Benefit or Universal Credit with housing cost elements.

From April 2017, DHPs were devolved to the Scottish Parliament. The Scottish Government has provided funding to mitigate the removal of the spare room subsidy, also known as the Bedroom Tax.

Discretionary Housing Payments Forecast - May 2019

 £ million 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Forecast              
Bedroom Tax mitigation 51 53 55 57 58 60 62
Scottish Government funding plans              
Other DHPs 11 11 11 11 11 11 11
               
Total 62 64 66 68 69 71 73

Source: Scottish Fiscal Commission (2019) Scotland's Economic and Fiscal Forecasts - May 2019.

Latest forecast

The budget for DHPs is split into two parts.

The first is demand-led and dedicated to the mitigation of the bedroom tax. On 12 December 2018, we produced an updated forecast for the cost of bedroom tax mitigation.

The second is a discretionary fund for all other DHP claims. The Scottish Government has set the 2019-20 budget for the discretionary fund at £10.9 million. The Scottish Government has not informed us of any plans to change the level of funding for the discretionary fund over the forecast period. We present the Scottish Government's funding plans below. We do not assess the demand for the discretionary fund and whether the funding from the Scottish Government is reasonable.

Our report Scotland’s Economic and Fiscal Forecasts for December 2018 contains further information on the methodology used in our forecast.

Supporting information

Scottish Fiscal Commission (2018) Scotland's Economic and Fiscal Forecasts May 2018

Scottish Fiscal Commission (2017) Scotland’s Economic and Fiscal Forecasts December 2017

Scottish Government page on Discretionary Housing Payments

Scottish Government statistics on Discretionary Housing Payments

Welfare Reform (Further Provision) (Scotland) Act 2012 - Annual Report 2017

DWP Benefit expenditure and caseload tables (Spring Budget 2017)