Scottish Discretionary Housing Payment: guidance manual

Section 3: Funding

12. Scottish Government funding arrangements

12.1 LAs are informed of their annual funding allocations by letter. At present Scottish Ministers wish to see the removal of the spare room subsidy and benefit cap mitigated as far as possible. Levels of funding for these purposes will be decided in consultation with the Scottish Fiscal Commission and delivered according to methodology developed with the joint COSLA/Scottish Government Settlement and Distribution Group. This will require the return of spending data to the Scottish Government at year-end and may involve a balancing payment after year-end.

12.2 For purposes other than removal of the spare room subsidy and benefit cap, a fixed amount will be allocated, to be spent at LA’s discretion within the DHP scheme.

12.3 LAs can use their own funds to top up their government contribution as they see fit.

12.4 Any unspent DHP funding from the government contribution is returned to the Scottish Government at the end of the financial year. This may take the form of a reduced balancing payment after year-end, if that is what is agreed with LA Leaders via the Settlement and Distribution Group. In some circumstances it may also be agreed between Scottish Ministers and LA Leaders that some DHP funding may be retained or “rolled-over” at the end of the year.

12.5 The Scottish Government will provide funding for the administration of the scheme to help meet LAs costs.