A councillor has hit out at the government’s decision to cut a vital budget used to prevent families from becoming homeless.

Maidstone Borough Council has had £20,000 shaved off the amount it receives in Discretionary Housing Payments this financial year.

In 2018/19 the authority spent 99% of its £320,000 allocation. That figure has now gone down to £302,510.

These funds are given out by local authorities to people who qualify for either Housing Benefit or the housing element of the new Universal Credit and are struggling with housing costs. Last year, 336 payments were made to claimants in Maidstone.

Councillor Derek Mortimer, chairman of the communities, housing and environment committee, said: “We still have a housing crisis. We are doing good work and homeless numbers are coming down but we need the money to protect our vulnerable residents.

“Why on earth would the government want to take money away from this fund?

“We seem to get penalised for doing a good job.”

Since the fund’s introduction in 2013, the borough council’s spend has increased by 42% and it has proven to be a successful resource for preventing homelessness.

If the council spends more than its government allocation it will have to dip into its own funds to help those in need.

A Department for Work and Pensions spokesman said: “The allocation of this funding ensures a fair distribution across local authority areas, and is reviewed each year based on need.”

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