A thirty five million boost to discretionary housing payments will not relieve the worst effects of the bedroom tax, housing sector figures have warned.
The government announced the additional DHP funding – which provides cash for local authorities to help those affected by the policy pay their rent – on Tuesday.
The same day, a legal challenge over claims the policy discriminates against disabled people was dismissed by the High Court.
Judges ruled that its effect on disabled people was not disproportionate, in part due to DHP provision.
However Birmingham Council, an interested party in Tuesday’s case, said the additional cash ‘merely papered over the cracks’.
John Cotton, cabinet member for social cohesion and equalities, said: ‘At the current rate our original allocation of £3.8 million will be fully spent by around November.’
Abigail Davies, assistant director of policy and practice at the Chartered Institute of Housing, said: ‘Discretionary housing support is meant to be for short-term issues not for situations that will be with people for life.’
Sam Lister, policy officer at the CIH, added that the announcement of extra cash could make it harder to overturn Tuesday’s ruling on appeal because the judgement said the original DHP level was enough to stop the policy being disproportionate.
Tuesday’s announcement takes this year’s funding for DHPs up to £185 million, due to drop to £120 million next year.
Emily Bird, policy leader for the National Housing Federation, said: ‘The provision of additional DHP doesn’t change the fact that the policy is unworkable and unfair.’
Lord Freud, minister for welfare reform, said the additional DHP funding would help councils offer support to vulnerable tenants.
Inside Housing revealed last month that English councils received more than 13,000 extra applications for DHPs in the month following the implementation of the bedroom tax.
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