Swindon Borough Council paid out £442,000 last year to help people struggling with housing costs because of welfare reforms.

A leading think tank has warned more action will be needed to help struggling renters, as hundreds of thousands fewer people are employed across the country since the start of the coronavirus pandemic.

Department for Work & Pensions figures show the council paid £483,900 in Discretionary Housing Payments to claimants in the year to March.

Of that, £442,300 went to helping people who were in difficulties because of reforms in the welfare system.

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.

The Government sets DHP funding for local authorities each year, with councils having to dip into their own funds if demand exceeds their allocation.

Councils across England and Wales paid out £132 million in 2019-20 – but 24 authorities did not supply figures, meaning the total could be higher.

Last year, the council exceeded its government allocation by nine per cent or £41,000.

In May, the government announced funding for councils across the two countries would increase by £40 million in 2020-21, to £179.5 million, citing “affordability pressures” in the rental market.

The council is set to receive £549,000, an increase of 24 per cent on last year.

Karl Handscomb, senior economist at the Resolution Foundation think tank, 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.”

In Swindon, the benefit cap alone led to £93,100 of payouts last year.

The cap, which was introduced in 2013, limits the total amount of benefits a person can receive to £13,400 per year, or £20,000 for a couple or single parent.

A further £156,800 went to people affected by the so-called bedroom tax, which reduces housing benefits for people with a spare bedroom, and £192,300 because of other welfare reforms, or a combination of the bedroom tax and benefit cap.