More households facing ‘grim reality’ of needing support for housing costs

More households facing 'grim reality' of needing support for housing costs

The number of applications for Discretionary Housing Payments has risen to 129,860 from 1 April 2024 to 31 March 2025, a 4.5% increase from the previous year, according to new figures from the Scottish Government.

The total value of awards was £89.3 million, which was 5% greater than at the same point in the previous year, and the average award value was £630, 1% more than in the previous year (£626).

The Scottish Government’s total published budget for DHPs in 2024-25 was £90.5m. This includes three funding streams for DHPs: Bedroom Tax Mitigation (£74.8m), Benefit Cap Mitigation (£7.8m) and Other DHPs (£7.9m).

To date, £74.0m of funding has been provided. Tranche 1 funding included Other DHPs funding for 2023-24 (£7.9m) and 80% of the estimated cost of Bedroom Tax Mitigation (£59.9m) and Benefit Cap Mitigation (£6.2m).

The remaining 20% of the estimated cost of Bedroom Tax Mitigation (£15.0m), and the remaining 20% of the estimated cost of the Benefit Cap Mitigation, (£1.6m) has been held back to reimburse local authorities for spending over and above Tranche 1.

Shelter Scotland has called the figures a “grim reality” for the tens of thousands impacted by the housing emergency. 

The housing and homelessness charity warned that the housing emergency is continuing to impact households across the country and is calling on the Scottish Government to issue an explicit housing emergency action plan.

Director Alison Watson said: “(These) figures are a stark reminder of how the housing emergency is continuing to impact thousands of families across the country, a year after the Scottish Parliament declared a housing emergency.

“It is the grim reality that the number of households seeking support for housing costs have jumped to 129,860 as tens of thousands of people remain stuck in the broken and biased housing system. From our latest survey, we know 2.3 million adults are struggling with the condition, security, suitability or affordability of their home, or have faced outright discrimination while trying to find one. This cannot be the norm.

“We desperately need more social homes and an explicit housing emergency action plan from the Scottish Government to show how we are going to get them, to ensure families have somewhere affordable and secure to call home.”

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