Council Benefits Waste Criticised

4.58.00pm UTC (GMT +0000) Wed 7th Dec 2005

Shock new figures show that Manchester City Council has returned nearly £125,000 to the Government from a funding pot set up to help vulnerable people and prevent homelessness.

The funding is administered by the Council's Housing Benefit department, to help vulnerable people needing more help to meet housing costs on top of any benefit they receive.

The figures, obtained by Manchester Liberal Democrat Housing Spokesperson Councillor Paul Shannon, show that in the last two financial years the Council returned £124,965 to the Department for Work & Pensions from the discretionary housing payments fund.

Cllr Shannon said:

"Sending this much-needed emergency money back to the Government could mean tenants building up unnecessary arrears and ultimately becoming homeless."

"Failing to use all of this money is incompetent. Giving back £125,000 to the Government is even worse!" said Cllr Shannon. "The Council need to try harder to make sure that benefit officials are made aware of this extra funding, so that in future none is given back to the Government."

As a Housing Association Board Member, Councillor Paul Shannon has seen the misery caused by tenants building up rent arrears.

"If the Council don't even spend the money we are given by the Government, how can we make the case for more?" he added. "This Labour Council shouldn't neglect basic services such as running an efficient Housing Benefit department."

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