People on benefits whose payments have been delayed are missing out on much-needed cash from the council.

Richmond Council no longer helps people whose benefits have been delayed through its local assistance scheme, which has a Government-set budget of £331,000.

At almost half the way through the financial year, the council had dished out £56,000, leaving a projected underspend of £150,000.

But the council said the money would be spent to help people who are in fuel poverty as energy prices rocket.

Cabinet member for finance Councillor Geoffrey Samuel said: “Every penny of that money will go to helping people who are in fuel poverty and I am proud that we as a council can help people at a time when energy prices are going up so much.

“I am delighted that the council can step in to help them.”

He defended the council’s decision not to give cash to people whose benefits were delayed.

He said: “The criteria for spending the money was agreed after a widespread consultation with many charitable organisations and housing association and so we have drawn up the scheme with local people.”

Richmond's charity food bank is on course to feed 1,500 people in crisis in its first year of operation.

Liberal Democrat leader of the opposition Councillor Stephen Knight visited the foodbank last week.

He said: “I pay tribute to the work of Richmond foodbank in helping to feed so many residents in crisis, but it is a scandal that so many people are in such need in the first place.

“I was told that one of the most common reasons people need help is due to delays in benefit payments.”

He called for the council to change the rules of the council’s local assistance scheme so it could help those whose benefits have been delayed, rather than see the money unspent.

Councils took responsibility from the Department for Work and Pensions to help people in need from April, when the previous crisis loans scheme was scrapped and councils set up their own local assistance schemes.