A THINK tank is calling for extra support to help people struggling with rent in the pandemic after Cheshire councils paid out more than £1 million last year.

Figures from the Department for Work and Pensions show that Cheshire West and Chester Council paid out £685,600 in discretionary housing payments in the year to March 2020, while Cheshire East Council paid out £457,700.

The payments are given to people who qualify for housing benefit, or the housing element of Universal Credit, and who are struggling with housing costs.

But leading think tank Resolution Foundation is warning more action will be needed to help struggling renters – with more than 20,000 people across both Cheshire boroughs now claiming unemployment benefit following a sharp rise during the pandemic.

Karl Handscomb, senior economist at the Resolution Foundation, said: “The current crisis has pushed three-quarters of a million employees out of work, increased the number of households impacted by the benefit cap, and seen more private renters falling into arrears.

"All of these factors will have in turn increased demand for discretionary housing payments.

“The increased demand is likely to remain elevated while the crisis is still with us, highlighting both the need for the welcome additional housing support announced in March, and for more action to support renters struggling to pay for their homes.”

The Government announced in May it would hand more money to councils for discretionary housing payments due to 'affordability pressures' in the rental market.

In 2020-21, CWAC is set to receive £781,000, while CEC will receive £614,000.

Of the total amount spent by CWAC last year, £286,000 went to helping people who were in difficulties because of welfare reforms, including £169,500 for people struggling with the 'bedroom tax'.

Meanwhile, CEC handed out £381,700 to people struggling with welfare reform, including £183,400 for people struggling with the 'bedroom tax'.

In total, 1,036 payments were made to claimants in Cheshire West during the year averaging £662 apiece – and 1,377 in Cheshire East, averaging £332 apiece.

A DWP spokesman said: “We have provided over £1 billion in discretionary housing payment funding since 2011, enabling local authorities to support households that need additional help.

“Funding is allocated in consultation with local authority bodies based on local pressures and payments are intended as transitional while longer term solutions are found.

“In addition, this year we have increased local housing allowance rates, including the shared accommodation element, benefitting over 1 million households by £600 a year on average.”