Image demonstrating Budget set to support tenants suffering financial hardship

Budget set to support tenants suffering financial hardship

Extra funding is being proposed in the Council’s forthcoming budget to support tenants who may be struggling the most financially. 
 
Each year the Council receives a Government grant to make Discretionary Housing Payments (DHP) to tenants within Northumberland. In 2021-22 the Council’s allocation was just over £500,000.  
 
While confirmation of the 2022-23 allocation has not yet been received, it is expected to be of a similar value. The Council is now pledging to match the Government’s allocation to help those who are suffering. 
 
In line with Government guidance the County Council is proposing to increase Council house rents by 4.1% for 2022-23.  North Tyneside, Gateshead and Newcastle have already approved a 4.1% increase and other local councils and larger housing associations within Northumberland are proposing to do similar.  
 
Unlike the Council and registered housing associations, rent levels within the private sector are not regulated in the same manner, but it is hoped that they continue to reflect the Local Housing Allowance, to minimise any shortfall between the weekly rent and amount that can be claimed in Housing Benefit or Universal Credit. 
 
The financial support for tenants who need help with their housing costs usually cover rent but can also include help with deposits or other lump sum costs associated with a housing need such as removal costs.  
 
Council Leader Glen Sanderson said: “We know that the proposed increase in rents, if agreed, along with other cost of living increases will in some circumstances create a financial hardship for some of our most vulnerable residents and we want to do all we can to help those who need it most. 
 
While the amount we can contribute towards these costs is limited by the Government, we’re proposing that a sum of money equivalent to our DHP allocation is set aside from the current year’s revenue budget underspend and added to the Government’s DHP allocation, so any resident experiencing hardship as a result of a rent increase can apply for help with their rental costs.” 
 
In the case of Council tenants, any award will be credited to their rent account. In the case of private and housing association tenants the award will be paid by the existing method used to pay their housing benefit. The award may on occasion be paid direct to the housing association or private landlord. 
 
All applications will be assessed in line with the Council’s Discretionary Housing Payments Policy. 
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