Guidance

S2/2020: 2020-21 Discretionary Housing Payments government contribution for English and Welsh local authorities

Updated 26 November 2020

© Crown copyright 2020

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This publication is available at https://www.gov.uk/government/publications/housing-benefit-subsidy-circulars-2020/s22020-2020-21-discretionary-housing-payments-government-contribution-for-english-and-welsh-local-authorities

Who should read

All Housing Benefit managers and staff in England, Scotland and Wales. Officers preparing subsidy claims and estimates.

Action

For information.

Guidance manual

The information in this circular does not affect the content of the HB Guidance Manual.

Queries

About the:

Introduction

1. This circular provides details of the government contribution and overall expenditure limit for Discretionary Housing Payments (DHPs) for 2020-21 for English and Welsh local authorities (LAs).

Background

2. Since 2011-12, additional DHP government contribution funding has been made available to enable LAs to provide transitional support to claimants as they adjusted to the Housing Benefits (HB) Welfare Reforms.

3. The DHP funding for England and Wales in 2020-21 will be £179.5 million, which includes £139.5 million rolled over funding from 2019-20 and an additional £40 million allocated at the Spending Round.

4. The distribution of the rolled over DHP government funding comprises four separate areas of support and the effect of each of these elements on individual LAs:

  • core funding
  • Local Housing Allowance (LHA)
  • removal of the Spare Room Subsidy (RSRS)
  • benefit cap

5. The additional £40 million is allocated based on affordability pressures in the private rented sector.

6. Those LAs who spent less than 60% of their central government DHP funding in 2018-19 will have their 2020-21 allocation reduced.

Distribution of government contribution for English and Welsh LAs

7. Most LAs will receive the same amount as they received in 2019-20 in relation to the four funding streams; preventing a reduction in funding and ensuring stability and continuity.

Core funding (£18 million)

8. We have retained the same amount for distributing as in 2019-20. This was based on the proportion of LA spend on HB using the published data for 2018-19.

9. An adjustment for Universal Credit (UC) was based on the relative proportion of claimants entitled to UC Housing costs compared to HB.

LHA (£27 million)

10. The government contribution amount allocated for 2020-21 is the same for the majority of LAs as in 2019-20. The methodology for calculating the funding for 2019-20 was based on the estimated reduction in HB entitlement for each LA from the freeze in LHA rates in 2017-18. The Department for Work and Pensions administrative data was used to estimate how housing support amounts would change if LHA rates were increased rather than frozen. The differences were then aggregated by LA and used in order to allocate the pot. An adjustment for UC was based on the UC housing caseload in the private rented sector (PRS) relative to the HB PRS case load.

RSRS (£40.5 million)

11. The RSRS funding allocation for the majority of LAs is the same as allocated in 2019-20. This was based on the total reductions in HB from the RSRS using the data published in May 2018. The pot was then allocated based on the LAs proportion of total RSRS reductions in HB. The UC adjustment was applied based on the Working Age social rented sector (SRS) caseloads in HB relative to the SRS UC housing caseload.

Benefit cap (£54 million)

12. The benefit cap funding is the same for most LAs as was allocated in 2019-20. This was based on the LAs proportion of the estimated total reduction in benefit under the lower benefit cap. Capped households are identified along with the amount of reduction applied to their benefit. This was then aggregated at LA level in order to allocate the pot. Published statistics provide the number of households capped in both HB and UC full service in each LA. A UC adjustment was made based on internal live service benefit centre management information.

Allocation of additional £40 million

13. The £40 million additional funding has been split proportionately between LAs and based on the aggregated LHA shortfalls in each LA (in other words, the total amount by which actual rents exceed LHA rates for those claimants with rent above LHA rate). This meant that LAs with the greatest LHA shortfalls will receive a larger proportion of the £40 million funding.

14. Those LAs who underspent their 2018-19 DHP allocation by 60% or more will not be allocated any of the additional £40 million funding.

Underspending LAs – Reduction in funding

15. Those LAs who spent less than 60% of their central government DHP funding in 2018-19 will have their 2020-21 allocation reduced by 20% or 40%, depending on the proportion and value of the underspend.

16. The methodology for calculating the reduction is based on the difference between the total expenditure notified by the LAs on their DHP3 final claim form 2018-19, and the LAs notified government contribution for the same year.

17. The withheld funding will be reallocated to those LAs that supplemented their central government contribution in 2018-19.

Annex A: 2020-21 DHP government contribution LA allocations

LA Total DHP allocation (in £) 2020-21 Overall limit (x2.5)
Adur 168,126 420,314
Allerdale 251,264 628,161
Amber Valley 193,501 483,753
Arun 422,432 1,056,079
Ashfield 316,580 791,451
Ashford 352,710 881,775
Babergh 150,814 377,035
Barking and Dagenham 1,223,600 3,059,000
Barnet 2,526,255 6,315,639
Barnsley 720,931 1,802,327
Barrow-in-Furness 148,902 372,256
Basildon 538,755 1,346,888
Basingstoke and Deane 398,061 995,154
Bassetlaw 240,479 601,197
Bath and North East Somerset 349,525 873,813
Bedford 408,200 1,020,499
Bexley 688,642 1,721,606
Birmingham 4,974,787 12,436,969
Blaby 129,609 324,022
Blackburn with Darwen 474,805 1,187,012
Blackpool 303,605 759,013
Blaenau Gwent 267,969 669,923
Bolsover 193,224 483,059
Bolton 917,004 2,292,511
Boston 153,166 382,916
Bournemouth, Christchurch and Poole 1,200,501 3,001,254
Bracknell Forest 245,792 614,480
Bradford 1,523,116 3,807,790
Braintree 307,762 769,405
Breckland 278,352 695,881
Brent 2,780,978 6,952,445
Brentwood 147,687 369,217
Bridgend 432,309 1,080,773
Brighton and Hove 1,169,565 2,923,913
Bristol, City of 1,351,386 3,378,464
Broadland 158,116 395,289
Bromley 893,289 2,233,221
Bromsgrove 127,385 318,463
Broxbourne 428,467 1,071,167
Broxtowe 159,716 399,290
Buckinghamshire 1,031,565 2,578,913
Burnley 321,111 802,778
Bury 440,563 1,101,407
Caerphilly 618,141 1,545,354
Calderdale 739,313 1,848,284
Cambridge 236,598 591,495
Camden 1,006,932 2,517,331
Cannock Chase 178,686 446,714
Canterbury 363,461 908,651
Cardiff 1,274,380 3,185,950
Carlisle 143,001 357,502
Carmarthenshire 471,791 1,179,477
Castle Point 282,788 706,970
Central Bedfordshire 461,696 1,154,241
Ceredigion 347,593 868,981
Charnwood 284,445 711,112
Chelmsford 356,241 890,603
Cheltenham 220,723 551,807
Cherwell 328,842 822,106
Cheshire East 614,359 1,535,897
Cheshire West and Chester 781,138 1,952,845
Chesterfield 257,306 643,265
Chichester 250,037 625,091
Chorley 193,443 483,608
City of London 20,893 52,231
Colchester 470,417 1,176,043
Conwy 271,196 677,991
Copeland 207,191 517,977
Corby 214,096 535,240
Cornwall 1,430,828 3,577,071
Cotswold 130,889 327,222
County Durham 1,513,130 3,782,826
Coventry 1,433,773 3,584,432
Craven 145,907 364,768
Crawley 367,018 917,546
Croydon 2,280,447 5,701,118
Dacorum 428,732 1,071,830
Darlington 287,586 718,966
Dartford 291,443 728,607
Daventry 150,835 377,086
Denbighshire 250,826 627,066
Derby 681,654 1,704,134
Derbyshire Dales 104,319 260,797
Doncaster 903,953 2,259,882
Dorset 994,891 2,487,226
Dover 328,475 821,187
Dudley 863,075 2,157,688
Ealing 2,590,204 6,475,511
East Cambridgeshire 119,887 299,718
East Devon 279,520 698,799
East Hampshire 157,405 393,512
East Hertfordshire 278,639 696,598
East Lindsey 425,986 1,064,964
East Northamptonshire 150,978 377,445
East Riding of Yorkshire 674,490 1,686,225
East Staffordshire 237,698 594,246
East Suffolk 610,671 1,526,678
Eastbourne 457,089 1,142,722
Eastleigh 244,628 611,571
Eden 172,368 430,919
Elmbridge 311,621 779,053
Enfield 2,973,507 7,433,768
Epping Forest 143,780 359,450
Epsom and Ewell 191,827 479,567
Erewash 236,498 591,244
Exeter 245,491 613,728
Fareham 153,951 384,878
Fenland 251,145 627,862
Flintshire 369,149 922,874
Folkestone and Hythe 406,154 1,015,385
Forest of Dean 132,532 331,331
Fylde 154,309 385,773
Gateshead 648,420 1,621,050
Gedling 211,344 528,361
Gloucester 350,433 876,083
Gosport 125,276 313,191
Gravesham 301,457 753,642
Great Yarmouth 380,828 952,070
Greenwich 1,127,855 2,819,636
Guildford 255,284 638,211
Gwynedd 799,687 1,999,218
Hackney 2,110,089 5,275,224
Halton 527,810 1,319,524
Hambleton 134,634 336,586
Hammersmith and Fulham 1,003,495 2,508,738
Harborough 96,617 241,542
Haringey 2,072,028 5,180,069
Harlow 294,598 736,495
Harrogate 265,282 663,206
Harrow 1,196,203 2,990,509
Hart 153,292 383,231
Hartlepool 439,542 1,098,856
Hastings 478,267 1,195,668
Havant 292,656 731,640
Havering 830,910 2,077,275
Herefordshire, County of 56,760 891,900
Hertsmere 348,911 872,278
High Peak 153,667 384,166
Hillingdon 1,139,590 2,848,974
Hinckley and Bosworth 161,201 403,003
Horsham 215,901 539,753
Hounslow 1,476,303 3,690,757
Huntingdonshire 287,692 719,230
Hyndburn 253,753 634,383
Ipswich 374,877 937,191
Isle of Anglesey 268,673 671,682
Isle of Wight 426,403 1,066,006
Isles of Scilly 833 2,081
Islington 1,007,226 2,518,066
Kensington and Chelsea 973,632 2,434,081
Kettering 213,131 532,827
King’s Lynn and West Norfolk 337,208 843,019
Kingston upon Hull, City of 992,912 2,482,281
Kingston upon Thames 557,440 1,393,601
Kirklees 913,088 2,282,720
Knowsley 722,714 1,806,786
Lambeth 1,590,641 3,976,603
Lancaster 371,502 928,754
Leeds 2,177,251 5,443,127
Leicester 1,139,971 2,849,928
Lewes 298,944 747,359
Lewisham 1,552,496 3,881,240
Lichfield 145,858 364,644
Lincoln 250,113 625,282
Liverpool 2,098,412 5,246,031
Luton 981,846 2,454,616
Maidstone 406,051 1,015,128
Maldon 101,387 253,467
Malvern Hills 134,682 336,704
Manchester 2,538,308 6,345,769
Mansfield 163,351 408,378
Medway 886,420 2,216,049
Melton 74,010 185,024
Mendip 279,718 699,295
Merthyr Tydfil 278,396 695,990
Merton 756,454 1,891,134
Mid Devon 142,558 356,395
Mid Suffolk 138,742 346,854
Mid Sussex 267,931 669,828
Middlesbrough 724,515 1,811,288
Milton Keynes 812,329 2,030,823
Mole Valley 126,364 315,909
Monmouthshire 238,856 597,140
Neath Port Talbot 538,505 1,346,263
New Forest 367,823 919,559
Newark and Sherwood 220,936 552,339
Newcastle upon Tyne 1,091,422 2,728,554
Newcastle-under-Lyme 215,702 539,255
Newham 2,361,926 5,904,814
Newport 749,659 1,874,149
North Devon 246,097 615,243
North East Derbyshire 205,689 514,223
North East Lincolnshire 513,262 1,283,154
North Hertfordshire 247,038 617,595
North Kesteven 172,612 431,529
North Lincolnshire 249,873 624,684
North Norfolk 203,191 507,976
North Somerset 519,174 1,297,936
North Tyneside 558,563 1,396,406
North Warwickshire 106,863 267,157
North West Leicestershire 167,110 417,775
Northampton 543,760 1,359,400
Northumberland 730,397 1,825,992
Norwich 461,491 1,153,727
Nottingham 1,160,722 2,901,804
Nuneaton and Bedworth 315,095 787,737
Oadby and Wigston 107,720 269,299
Oldham 793,085 1,982,713
Oxford 459,192 1,147,979
Pembrokeshire 431,609 1,079,023
Pendle 211,209 528,023
Peterborough 671,924 1,679,810
Plymouth 812,410 2,031,024
Portsmouth 793,153 1,982,883
Powys 585,499 1,463,746
Preston 395,962 989,905
Reading 668,150 1,670,376
Redbridge 1,598,219 3,995,547
Redcar and Cleveland 489,617 1,224,042
Redditch 161,745 404,362
Reigate and Banstead 340,034 850,086
Rhondda, Cynon, Taff 666,323 1,665,808
Ribble Valley 63,325 158,313
Richmond upon Thames 502,604 1,256,511
Richmondshire 147,327 368,316
Rochdale 702,642 1,756,605
Rochford 171,318 428,294
Rossendale 127,811 319,528
Rother 271,118 677,795
Rotherham 765,828 1,914,571
Rugby 204,660 511,650
Runnymede 191,799 479,497
Rushcliffe 149,569 373,924
Rushmoor 292,051 730,127
Rutland 42,774 106,935
Ryedale 230,160 575,400
Salford 991,896 2,479,739
Sandwell 1,279,033 3,197,583
Scarborough 325,267 813,168
Sedgemoor 345,998 864,994
Sefton 925,029 2,312,572
Selby 127,364 318,410
Sevenoaks 238,106 595,264
Sheffield 1,353,200 3,383,001
Shropshire 546,034 1,365,086
Slough 858,616 2,146,539
Solihull 439,526 1,098,815
Somerset West and Taunton 452,759 1,131,898
South Cambridgeshire 184,054 460,135
South Derbyshire 156,990 392,475
South Gloucestershire 462,554 1,156,386
South Hams 173,097 432,741
South Holland 159,737 399,343
South Kesteven 289,933 724,831
South Lakeland 133,426 333,564
South Norfolk 205,583 513,958
South Northamptonshire 97,107 242,766
South Oxfordshire 235,908 589,769
South Ribble 180,287 450,717
South Somerset 315,793 789,482
South Staffordshire 151,916 379,791
South Tyneside 571,292 1,428,230
Southampton 822,494 2,056,235
Southend-on-Sea 746,322 1,865,806
Southwark 1,352,728 3,381,821
Spelthorne 343,844 859,610
St Albans 256,884 642,210
St. Helens 615,363 1,538,407
Stafford 172,454 431,136
Staffordshire Moorlands 121,024 302,561
Stevenage 250,549 626,373
Stockport 514,426 1,286,064
Stockton-on-Tees 564,669 1,411,672
Stoke-on-Trent 738,322 1,845,804
Stratford-on-Avon 215,461 538,653
Stroud 98,410 246,026
Sunderland 498,548 1,246,370
Surrey Heath 135,130 337,826
Sutton 637,287 1,593,218
Swale 480,245 1,200,612
Swansea 635,429 1,588,574
Swindon 549,407 1,373,517
Tameside 735,356 1,838,389
Tamworth 182,433 456,083
Tandridge 190,960 477,399
Teignbridge 314,681 786,701
Telford and Wrekin 618,017 1,545,043
Tendring 579,037 1,447,592
Test Valley 206,050 515,125
Tewkesbury 142,189 355,473
Thanet 646,951 1,617,378
The Vale of Glamorgan 283,494 708,734
Three Rivers 220,091 550,226
Thurrock 653,645 1,634,113
Tonbridge and Malling 267,941 669,852
Torbay 625,048 1,562,620
Torfaen 341,523 853,807
Torridge 150,629 376,571
Tower Hamlets 1,927,869 4,819,673
Trafford 543,352 1,358,380
Tunbridge Wells 219,883 549,708
Uttlesford 118,042 295,104
Vale of White Horse 224,870 562,176
Wakefield 979,593 2,448,982
Walsall 988,560 2,471,401
Waltham Forest 1,370,057 3,425,142
Wandsworth 1,310,781 3,276,953
Warrington 417,947 1,044,868
Warwick 197,719 494,299
Watford 358,308 895,771
Waverley 193,279 483,199
Wealden 304,462 761,154
Wellingborough 181,455 453,638
Welwyn Hatfield 311,424 778,560
West Berkshire 302,292 755,731
West Devon 176,587 441,467
West Lancashire 268,487 671,217
West Lindsey 217,575 543,937
West Oxfordshire 176,523 441,309
West Suffolk 300,531 751,328
Westminster 1,465,760 3,664,400
Wigan 784,691 1,961,726
Wiltshire 527,284 1,318,211
Winchester 173,021 432,553
Windsor and Maidenhead 295,295 738,237
Wirral 1,102,976 2,757,441
Woking 212,685 531,712
Wokingham 239,158 597,896
Wolverhampton 978,378 2,445,944
Worcester 215,132 537,831
Worthing 318,126 795,315
Wrexham 418,771 1,046,926
Wychavon 193,195 482,986
Wyre 245,996 614,989
Wyre Forest 221,071 552,678
York 297,923 744,807
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