UK Government offers to transfer power over housing payment cap
2 May 2014 03:55 PM
Offer demonstrates UK
Government's commitment to taking a pragmatic approach to
devolution.
The UK Government has offered to
transfer the power to set the cap on Discretionary Housing Payments (DHP) in
Scotland, the Scotland Office Minister David Mundell announced
today.
The announcement demonstrates
the UK Government’s commitment to taking a pragmatic approach to
devolution and to engaging intensely with local authorities in
Scotland.
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If the Scottish Government
chooses to accept this offer, it will have the flexibility to pass on more
funding from its existing block grant to local authorities. It is up to the
Scottish Government and local authorities how they choose to allocate their
money.
In a letter to the Deputy First
Minister, Mr Mundell offered to transfer the power to the Scottish Government
through a Section 63 Order which will require the agreement of the UK and
Scottish Governments before being approved by both the UK and Scottish
Parliaments.
DHPs can be used by local
authorities across Great Britain to provide additional funding for people in
receipt of housing benefit who need extra support. At present each local
authority must operate within a formula-based spending cap set by the
Department for Work and Pensions. The proposal from the UK Government would
mean that the Scottish Government would have the power to set the DHP cap for
Scottish local authorities in future.
Mr Mundell
said:
I have completed a programme of
visits to all Scottish local authorities and believe that transferring this
power to the Scottish Government is the correct thing to do. The UK Government
believes in taking a pragmatic approach to devolution and we believe in a
United Kingdom that gives Scotland the best of both worlds. I hope that
officials from both governments will now be able to take this
forward.
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