Nuneaton and Bedworth Borough Council is failing in its duty to help local people, according to local MP Marcus Jones, who has discovered that the Borough Council are returning over £120,000 of funding back to central Government.

The Borough Council confirmed in May that only 38% of its Discretionary Housing Payment allocation from central Government had been spent on helping local people. The Discretionary Housing Payment scheme covers shortfalls between rental liability and the payment of Housing Benefit, the additional funding provided to local Councils by central Government to ensure that money existed to help people who had a shortfall following the introduction of welfare reforms.

Nuneaton and Bedworth Borough Council was allocated £196,127 by the Government in 2013/14 and £221,057 in 2014/15 – an increase of £24,930, based on the projected level of the support it would need. The Council faced criticism having opted to spend slightly over one third of its allocation in the last financial year, despite repeatedly attacking the Government for reducing its funding.

The news that £121,442, that was ringfenced to support people affected by welfare reforms, has been returned to the Treasury has been met with dismay by the town’s MP. He is now seeking urgent answers from the Council Leader and has urged the Council to review its criteria.

Commenting, Marcus said: “I fully accept that some people have faced challenges as a result of welfare reforms, and that is why I am very pleased that more people than ever are now in employment, which is the best means to lift people out of poverty. However, I am disappointed in the uncaring nature of the local Labour controlled Council. In recognising that for some people the changes would be difficult, the Government rightly provided funding to the Borough Council to ensure that money was available to help those who need it.

“Despite the fact that the local Council spent so little of its allocation, the Government increased funding for Nuneaton to ensure that as many people as possible receive help and assistance.

“It was absolutely staggering that the Council spent only 38% of its £196k allocation last year, but it is nothing short of outrageous for the Council to return so much money to the Treasury, leaving some local people in difficulty. For a Council that has committed so much time and energy in attacking central Government for reducing its funding - when it won’t spend the money it is given to help some of my constituents – is absolutely appalling.

“I would urge local people who are in receipt of housing benefit, if they are struggling to make ends meet, to contact the Borough Council and to ask if the Discretionary Housing Payment is relevant to their circumstances. For some people, it will be the vital help and support they need.

“The Borough Council must get it right in this financial year as the Government has increased its funding. I will be keeping close tabs on how this money is spent this year.”