CEREDIGION Labour Party has challenged Ceredigion Council to explain why it has underspent the money allocated by the UK government to help the most vulnerable, including those in the Tivyside area.

Discretionary Housing Payments are funded by Westminster and are designed to assist those people who are in the greatest need pay their housing costs.

The Department for Work and Pensions allocation for Discretionary Housing Payments to Ceredigion County Council in 2016/17 was £246,478.

At the end of the financial year the Council had spent £235,452, had payments of £1,624 committed, leaving £9,402 unused. The amount of the underspend could have been far higher if Ceredigion Labour Party had not intervened, after discovering that in January 2017 that Ceredigion’s underspend was the second highest in Wales at £103,172.

Cymru Shelter has this week revealed that Ceredigion Council was one five Welsh Councils who were responsible for 75 per cent of the underspend.

Dinah Mulholland, the Labour Party candidate in the recent General Election, said: “The Labour Party has been pressing Ceredigion Council on the issue of the underspend, and so is very disappointed that Cymru Shelter have found that the Council is actually returning money to Whitehall.

“I have been made aware of people in Ceredigion on the verge of homelessness who have not been told about this fund, and others whose applications for it have been turned down. They must be feeling outraged today that money that could have helped them has been returned to Whitehall.

“The ‘discretionary’ aspect of this fund, as applied by Ceredigion, needs to be scrutinized. Councils have a duty of care and vulnerable residents need support and not judgement.

“Grenfell has taught us that councils all across the UK need to change their attitudes and procedures to protect their residents. The council should commit to making sure that the scheme is publicised more fully.”

Councillor Dafydd Edwards, Ceredigion cabinet member for finance and housing,said: “Making good use of the Discretionary Housing Payment fund is crucial to ensure the most needy, eligible applicants benefit from the scheme.

“Ceredigion County Council is proud of the proactive work undertaken by its housing options team and housing benefit team to minimise homelessness. Our proactive work has been a success in reducing homelessness which is evidenced by the reduction in applications in DHP over a two year period.

“In 2015-16 Ceredigion received 934 applications for DHP and contributed £15,590 of its own funds to top up its DHP allocation. In 2016-17 it received 704 applications, resulting in an underspend. This in essence reinforces the good work teams undertake in reducing and avoiding homelessness.

“The Council has been administering DHPs since 2001 and apart from 2016/17 has consistently spent its full allocation of DHP and regularly topped up the fund with its own funds.”