£81,000 of grants to help with rent in Shropshire have not been spent

Shropshire Council says that not enough people reached the criteria for payments under the discretionary housing grant. But some councillors have said that the scheme was poorly advertised.

In 2013/14, Shropshire's Discretionary Housing Grant allocation was £277,475. Of this £216,628 – 78 per cent – was spent with £60,847 returned to the Department of Work and Pensions. During the year 1,655 applications were made for help of which 823 were awarded at an average of £20.43 per week. In 2014/15, Shropshire's allocation was increased to £383,819. But present predictions are that only £302,322 will be given out to needy family's by March 31, leaving £81,497 to be returned.

Councillor Roger Evans, leader of the Liberal Democrat group at Shropshire Council, said the situation was "deplorable" and added that in June 2014 he called for an urgent revision to the authority's policy.

But Councillor Mike Owen, Shropshire Council's cabinet member for resources, said the policy was being looked at by a task and finish group in light of the concerns raised.

Councillor Evans said: "This grant is and was meant to help those affected by the recent changes in the benefits system, to help those in need to cope with shortfalls in rent. To help our vulnerable local residents.

"A report published yesterday shows that the policy was not being changed, so again cash is to be returned. We have also been told that no alterations are to be made until a further consultation is carried out.

"The cabinet could alter the policy and so use this extra £81,000 to help our local residents, those who need it now. When asked why council is going to return money back to the Government the only answer was silence.

"The discretionary housing grant was and has been very poorly advertised by the Shropshire Council. As a result almost a quarter of it has had to be returned. At a time when many families, especially those on low incomes, in the county, are struggling this is deplorable."

The returning of the grant has also been criticised by Ruyton-XI-Towns parish councillor Colin Case. "I don't understand all the reasons – maybe not enough claimants or maybe the qualification criteria exclude many residents.

"Either way, this is surely outrageous – the money was intended for the less affluent in our communities and it is being returned."

Councillor Owen said: "We're beginning to see increased demand on the discretionary housing payment funding as welfare reforms take shape.

"As a result, while some money will be returned to the Government, we expect to spend significantly more this year than last."We're also mindful that further benefit changes later this year have the potential to increase demand on this fund still further."

"A cross-party task & finish group was set up in December 2013 to consider Shropshire's approach to DHP, and whether this can be improved both to meet the needs of tenants and ensure that the allocation made available to Shropshire is maximised.

"As a result of the group's recommendations, Shropshire Council will be consulting on a new policy for future delivery of this scheme and we encourage people to submit their comments as part of this consultation.

"During the resulting period of consultation the task and finish group will be reconvened to examine the proposals in light of concerns raised."