South Hams District Council has defended its use of discretionary housing funds following claims that it overspent its Government allocation by almost 30 per cent.

New figures published by the Department for Work and Pensions revealed the council spent £121,146 on Discretionary Housing Payments (DHPs) in the year to March, despite receiving only £93,848 from the Government a difference of more than £27,000.

Housing charity Shelter described DHPs as a “meagre top-up” and said the payments are not enough to prevent families from being pushed into homelessness.

But Councillor Nicky Hopwood, South Hams District Council’s Executive Member for Cost of Living, said the claim that the council had overspent was “completely misleading”.

She said: “We did not overspend. We topped up the budget with our own funds, following government guidance. This approach means we can continue to support those in need without going over our financial limits.”

Councils are permitted to increase their DHP budget to up to two and a half times the original Government allocation using their own money.

Cllr Hopwood added: “This flexibility is crucial in addressing the housing needs of our community effectively.”

The council said it chose to use additional resources to help local residents facing hardship, and that doing so was both lawful and encouraged under current DWP rules.

The DHP scheme is designed to help people receiving Housing Benefit or Universal Credit who are struggling with housing costs, including those affected by welfare reforms such as the spare room subsidy.

South Hams District Council said it would continue to use all available options to protect vulnerable households and ensure residents can stay in their homes during a period of rising rents and limited affordable housing supply.