THE number of housing benefit recipients in Monmouthshire facing hardship has increased fourfold in the last two years, according to findings.

In a performance report by Monmouthshire County Council, which will be discussed further tomorrow (Thursday) at a joint special meeting of adults and strong communities selects, government welfare reforms have caused a significant increase in applicants claiming discretionary housing payments (DHP).

The payments can be paid in addition to any housing benefit award to cover housing costs such as rent deposits, although heating costs and council tax liability are excluded.

Of the 694 applications received to date – a slight increase compared to this time last year – 673 have been successful, with 21 tenants taking in a lodger to help meet rent expenses.

The average level of DHP awarded in 2014/15 is £10.73 per week and the findings show that since 2010/11 the amount of awards paid to those facing hardship has increased from £33,059 to £117,738 (including commitments to the end of financial year of £29,545), with last year reaching £148,165.

It is thought three key measures included in the welfare reforms have resulted in more people on benefits applying for the short-term payment to make up the shortfall while looking for a long-term solution such as finding work.

The introduction of the 'bedroom tax' currently affects 611 households whose reductions vary between £9 and £25 per week. The benefit cap, introduced last September, currently affects 18 households with losses of £50 per week.

The limitations on private sector rents has seen general restrictions on the benchmark rents for all households reduced and single claimants under 35 receive a maximum level equal to the rate for a shared room at £52.50 per week.

Council members will review the report and suggest amendments to the current policy approach (if appropriate).

The council's cash limit for 2014/15 is £319,328, of which £127,731 is given by central government in a grant and £191,597 falls to the authority to fund. The budget was increased by £60,000 to reflect this potential cost to the authority, taking the annual budget to £161,538, should the authority spend to this limit this would result in a £30,000 overspend.

Indications suggest this overspend will not arise, any unspent funding, up to the Department for Work and Pensions (DWP) level, must be returned by the council.