Background information and methodology: use of Discretionary Housing Payments statistics
Published 11 July 2024
Applies to England and Wales
1. Introduction
These Official Statistics are published biannually and give a summary of local authority (LA) expenditure on Discretionary Housing Payments (DHPs). These statistics have not been assessed by the UK Statistics Authority and have not been designated as National Statistics.
For accounting purposes, LAs are legally required to provide details of their DHP expenditure at the midpoint and end of the financial year. LAs are also asked for voluntary ‘monitoring’ information to provide further details about their use of DHP funding.
Since the financial year ending March 2021, LAs complete a combined return, which asks for both the legally required financial information and the voluntary monitoring information on the same return. This statistical release presents a summary of these returns. It covers the financial year ending March 2024.
Read previous releases of this statistical series.
2. Methodology
The financial information details how much of the Government contribution towards DHPs LAs have spent for the financial year (including any additional expenditure above the government contribution). The analysis of this data focuses on comparing total spend against central government allocations.
Any comparison of expenditure across years should be treated with caution as the Government contribution to DHPs differs year to year. Funding has been consistent for local authorities since 2022 to 2023.
By 31 May 2023, 316 out of 318 LAs had submitted a return. All of these returns included an estimate of DHP expenditure. The Department is contacting the remaining LAs in order to obtain information about expenditure.
These statistics are also based on monitoring information, which gives further details of LAs expenditure on DHPs by splitting the spend by the purpose for which the DHP was awarded and the policy (if any) with which it was associated.
Because the monitoring information is voluntary, not all LAs provide it, and some LAs do not supply all the information requested. This means that, for example, some LAs may provide a split by policy, but not by purpose of the DHP.
Of the 316 LAs that submitted returns by our deadline of 31 May 2023, 305 provided a breakdown of expenditure by policy whilst 300 provided a breakdown of expenditure by purpose of DHP.
When we gather returns, we perform various checks to assess whether they are accurate. For example, we check against the previous year’s figures. We also check any results that look too big or too small. We then query any results that appear to be inaccurate with the LA.
That said, the statistics rely on the accuracy of the returns. Although we believe they give an accurate overall picture, it is likely that smaller errors remain even after the quality checks above.
When LAs provide data on the number of awards, there may be some differences between LAs in the way awards are counted. For example, if the amount of a DHP award changed, some LAs may count this as a new DHP award, whereas some may count it as the same award. We do query awards figures with LAs that are inconsistent with other data they provide, but caution should be taken when comparing the number of awards reported by individual LAs.
3. Trustworthiness and Quality
As described above, this publication is based on information provided by LAs. While some quality checks are conducted, the results are not verified in detail.
Any discrepancies were queried with LAs and any resubmissions of corrected returns received by 31 May 2024 were accepted and included in the analysis. No results were altered without the explicit consent of the submitting local authority.
4. Definitions
Removal of the Spare Room Subsidy (RSRS)
In April 2013 the RSRS policy came into effect. This policy applies to working age social rented sector Housing Benefit and Universal Credit households (pensioner households are exempt). A deduction is applied to the level of housing support where households are living in a property that is considered to have more bedrooms than the household needs under the current policy.
Benefit Cap
Rolled out from April 2013, the Benefit Cap is a limit on the total amount of benefit that most working age households can receive. Since April 2023, the maximum amount couples and households with children can receive is £22,020 a year (£25,323 in Greater London) and £14,753 a year (£16,967 in Greater London) for single person households.
Local Housing Allowance (LHA) Reforms
People who rent from a private landlord and receive Housing Benefit or the housing element of Universal Credit generally have their claim assessed under the LHA rules. These determine the maximum amount payable in a given area depending on the characteristics of the household. Reforms to the LHA system since April 2011 have generally restricted the eligible rent that can be met through Housing Benefit and Universal Credit.
5. Useful links
This document, the statistics release and supporting tables can be found here:
Information on Official Statistics is available on the UK Statistics Authority website.
Read information about statistics at DWP.
6. Contact information
For media enquiries please contact the DWP press office.
Responsible Analyst: Keir Thomson
Email: keir.thomson@dwp.gov.uk
Author: Sophie Reid
Email: sophie.reid2@dwp.gov.uk