S6/2025: Discretionary Housing Payment government contribution for Welsh local authorities for the financial year ending March 2027
Updated 6 January 2026
Applies to England, Scotland and Wales
© Crown copyright 2026
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Housing Benefit Circular
Department for Work and Pensions
Caxton House, Tothill Street, London SW1H 9NA
Subsidy Circular
Who should read
All Housing Benefit (HB) colleagues and wider if appropriate.
Action
For information.
Subject
Discretionary Housing Payment government contribution for Welsh local authorities for the financial year ending March 2027.
Guidance Manual
The information in this circular does not affect the content of the HB Guidance Manual.
Queries
If you have any queries about the technical content of this circular, contact contact lawelfare.lafunding@dwp.gov.uk.
If you have any queries about the distribution of this circular, contact lawelfare.correspondence@dwp.gov.uk.
Crown Copyright 2025.
Recipients may freely reproduce this circular.
Introduction
1. Discretionary Housing Payment (DHP) funding is available for those entitled to Housing Benefit or the Housing Element of Universal Credit who require further financial assistance with housing costs.
2. This circular provides details of the government contribution and overall expenditure limit for DHPs for the financial year ending (FYE) March 2027.
Funding
3. DHP funding for Wales for the FYE March 2027 is confirmed at £6.5 million. This is consistent with the total funding provided to local authorities (LAs) in the FYE March 2026. From the FYE March 2027, DHPs in England will be incorporated into the Crisis and Resilience Fund (CRF).
4. Welsh LAs will receive the same allocation level as they received in the FYE March 2026. This was considered the fairest approach given broader economic pressures.
5. The individual allocations shown in Annex A are the full government contributions for each LA from the £6.5 million DHP fund for the FYE March 2027.
6. Any unspent funds from the FYE March 2026 cannot be carried over to subsequent years.
Expenditure limit
7. In addition to the central government contribution, Welsh LAs are able to top up DHP funding using their own funds. From the FYE March 2027, there will be no limit set to the top up amount. This is in line with plans for housing support within the CRF in England.
DHP Welsh LA allocations for the FYE 2027
| LA | Total (£6.5 million) DHP allocation for the FYE March 2027 |
|---|---|
| Blaenau Gwent | £140,170 |
| Bridgend | £258,312 |
| Caerphilly | £339,277 |
| Cardiff | £781,533 |
| Carmarthenshire | £268,324 |
| Ceredigion | £275,132 |
| Conwy | £176,335 |
| Denbighshire | £171,145 |
| Flintshire | £205,365 |
| Gwynedd | £650,017 |
| Isle Of Anglesey | £123,008 |
| Merthyr Tydfil | £144,200 |
| Monmouthshire | £119,074 |
| Neath Port Talbot | £291,401 |
| Newport | £380,372 |
| Pembrokeshire | £198,191 |
| Powys | £527,613 |
| Rhondda, Cynon, Taff | £404,038 |
| Swansea | £395,685 |
| Torfaen | £189,926 |
| Vale Of Glamorgan | £194,041 |
| Wrexham | £226,072 |