'Bedroom tax' and benefits cuts draining councils’ emergency funds

Authorities had been forced to dip into funds allocated to other services to cope with the surge in numbers of households appealing for help

Deputy Political Editor

Councils have been hit by a dramatic increase in requests for emergency financial help from people struggling to make ends meet following the introduction of the “bedroom tax” and other cuts to benefits.

More than 200,000 contacted their town halls in the six months after the latest benefits squeeze came into effect, the Local Government Association has estimated.

It also said that many authorities had been forced to dip into funds allocated to other services to cope with the surge in numbers of households appealing for help.

The "bedroom tax", under which people have lost 14 per cent in housing benefit payments if they are deemed to have a spare room, was introduced in April. It coincided with below-inflation increases in benefit rates and the introduction of a £500-a-week cap on the total benefits a household can receive.

An LGA survey found 81 per cent of councils had experienced a sharp increase in applications for support under the Discretionary Housing Payments scheme, which allocates cash to people affected by benefit changes.

A further nine per cent said they had noticed a small increase, with just three per cent saying demand had fallen.

95 per cent of authorities who paid out more money said it was to ease the impact of the “bedroom tax”, which the Government refers to as the “spare room subsidy”. Restrictions on housing benefit payments were cited by 68 per cent of authorities and the benefit cap by 20 per cent.

The vast majority of councils (88 per cent) said they had used the cash to stop people losing their homes, 56 per cent said it had been allocated to alleviate poverty and 38 per cent said it was to help disabled people to remain in specially-adapted accommodation.

The Government tripled the size of the fund this year to soften the impact of the cuts, but this was not enough to stop some councils raiding other budgets to boost the help they offer to claimants.

15 per cent of them reported they had transferred cash from other budgets to stop people losing their homes or facing poverty.

Sharon Taylor, chair of the LGA’s finance panel, said: “Demand for help from Discretionary Housing Payments is significantly outstripping the money the Government has made available to councils to mitigate the changes in some areas. This will have a significant impact on local government budgets, which are already stretched to breaking-point by the deepest cuts in the public sector.”

A spokesman for the Department of Work and Pensions said: “This year we tripled the size of the DHP pot to £180m, so there is a clear safety net for vulnerable households as we bring in our vital welfare reforms.

“Early indications are that most councils are spending within their budgets. There is also additional funding for councils so they can bid to top up their local pots.”

But Chris Bryant, the shadow welfare reform minister, said: “The Tories’ cost-of-living crisis is making life harder for families with Tory policies like the bedroom tax leaving thousands with no way out.”

News
In 2006, Pluto was reclassified as a 'dwarf planet'
scienceBut will it be reinstated?
Voices
voicesI like surprises - that's why I'm bringing them back to politics, writes Nigel Farage
Arts and Entertainment
Adam Levine plays a butcher who obsessively stalks a woman in Maroon 5's 'Animals' music video
music'Animals' video 'promotes sexual violence against women'
News
people Biographer says cinema’s enduring sex symbol led a secret troubled life
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksAn unforgettable anthology of contemporary reportage
News
newsGlobal index has ranked the quality of life for OAPs - but the UK didn't even make it into the top 10
Arts and Entertainment
Anthony Horowitz will write the next 007 novel
booksAnthony Horowitz to write new instalment in spy series for 2015
News
people

Kirstie Allsopp has waded into the female fertility debate again

Sport
Kicking on: Nathaniel Clyne is relishing the challenge of the Premier League after moving from Crystal Palace
footballSurprises include a first ever call-up for one Southampton star
Voices
4 May 2013: The sun rises over Tower Bridge in London. Temperatures across the UK could be higher than several European holiday destinations by Monday, including parts of Italy and France (Andy Hepburn/PA)
voices
News
The moon observed in visible light, topography and the GRAIL gravity gradients
science

...and it wasn't caused by an asteroid crash, as first thought

News
Researchers say a diet of fatty foods could impede smell abilities
scienceMeasuring the sense may predict a person's lifespan
Arts and Entertainment
The first batch of coach and ticket packages has sold out for next year's Glastonbury
musicIt looks like you're going to have to be quick to get tickets this year
News
peopleStella McCartney apologises over controversial Instagram picture
Extras
indybest
News
people
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Digital Fundraising Analyst/Web Analyst - West Sussex - Permanent - £30k DOE

£25000 - £30000 Per Annum Excellent benefits: Clearwater People Solutions Ltd:...

Application Support Engineer – 6 month FTC – West Sussex - £26k-£28k pro rata

£26000 - £28000 Per Annum: Clearwater People Solutions Ltd: We are currently r...

Head of IT Change – West Sussex – Up to £60k DOE – Permanent

£55000 - £60000 Per Annum plus excellent benefits: Clearwater People Solutions...

IT Services Team Leader

£35000 - £40000 Per Annum: Clearwater People Solutions Ltd: Our client, a prog...

Day In a Page

Italian couples fake UK divorce scam on an ‘industrial scale’

Welcome to Maidenhead, the divorce capital of... Italy

A look at the the legal tourists who exploited our liberal dissolution rules
Tom and Jerry cartoons now carry a 'racial prejudice' warning on Amazon

Tom and Jerry cartoons now carry a 'racial prejudice' warning on Amazon

The vintage series has often been criticised for racial stereotyping
An app for the amorous: Could Good2Go end disputes about sexual consent - without being a passion-killer?

An app for the amorous

Could Good2Go end disputes about sexual consent - without being a passion-killer?
Llansanffraid is now Llansantffraid. Welsh town changes its name, but can you spot the difference?

Llansanffraid is now Llansantffraid

Welsh town changes its name, but can you spot the difference?
Charlotte Riley: At the peak of her powers

Charlotte Riley: At the peak of her powers

After a few early missteps with Chekhov, her acting career has taken her to Hollywood. Next up is a role in the BBC’s gangster drama ‘Peaky Blinders’
She's having a laugh: Britain's female comedians have never had it so good

She's having a laugh

Britain's female comedians have never had it so good, says stand-up Natalie Haynes
Sistine Chapel to ‘sing’ with new LED lights designed to bring Michelangelo’s masterpiece out of the shadows

Let there be light

Sistine Chapel to ‘sing’ with new LEDs designed to bring Michelangelo’s masterpiece out of the shadows
Great British Bake Off, semi-final, review: Richard remains the baker to beat

Tensions rise in Bake Off's pastry week

Richard remains the baker to beat as Chetna begins to flake
Paris Fashion Week, spring/summer 2015: Time travel fashion at Louis Vuitton in Paris

A look to the future

It's time travel fashion at Louis Vuitton in Paris
The 10 best bedspreads

The 10 best bedspreads

Before you up the tog count on your duvet, add an extra layer and a room-changing piece to your bed this autumn
Arsenal vs Galatasaray: Five things we learnt from the Emirates

Arsenal vs Galatasaray

Five things we learnt from the Gunners' Champions League victory at the Emirates
Stuart Lancaster’s long-term deal makes sense – a rarity for a decision taken by the RFU

Lancaster’s long-term deal makes sense – a rarity for a decision taken by the RFU

This deal gives England a head-start to prepare for 2019 World Cup, says Chris Hewett
Ebola outbreak: The children orphaned by the virus – then rejected by surviving relatives over fear of infection

The children orphaned by Ebola...

... then rejected by surviving relatives over fear of infection
Pride: Are censors pandering to homophobia?

Are censors pandering to homophobia?

US film censors have ruled 'Pride' unfit for under-16s, though it contains no sex or violence
The magic of roundabouts

Lords of the rings

Just who are the Roundabout Appreciation Society?