Support for families at risk of homelessness

5 Nov 2026 11:34 AM

£2 million funding boost for housing payment scheme.

A scheme helping low-income households avoid homelessness will receive an additional £2 million this year.

The Discretionary Housing Payment scheme provides direct financial support to low-income households struggling with housing costs and helps people to retain their tenancy in the rented sector.

The additional funding takes this year's investment in the scheme to a record £117 million. This will help an estimated 100,000 households in Scotland sustain their tenancies. The scheme is the main way the Scottish Government mitigates the impacts of the UK Government’s ‘bedroom tax’ and benefit cap.

Cabinet Secretary for Social Justice and Housing Shirley-Anne Somerville said:

“Our Discretionary Housing Payments are a vital lifeline to families at risk of losing their home and help protect people from the UK Government’s damaging bedroom tax and benefit cap policies.

“Our scheme is delivering and providing direct support to low-income households – helping to reduce poverty, safeguard tenancies and prevent homelessness. In Scotland, we offer a level of support not available elsewhere in the UK, and our different approach is working.

“However, the UK Government’s decision to freeze the support given to private renters at 2024 levels means people are struggling to pay their housing costs – this is driving homelessness and putting families at serious risk. I am extremely disappointed the Chancellor chose not to use his Budget to end the freeze and give households the breathing space they desperately need.”