Government funding for Discretionary Housing Payments (DHPs) for the tax year 2015 to 2016 will be £125 million
Funding for 2014 to 2015 was £165 million, which means a reduction of £40 million this year.
DHPs have been used to pay those who have fallen victim to the bedroom tax. A recent law case, which is to be appealed to the Supreme Court, concerning the bedroom tax in relation to the discrimination of disabled people failed because it was argued that DHPs were available to alleviate hardship.
Such a severe cut in funding would appear to undermine that argument.
For more information see HB Circular S1/2015.