A simple two-phase model for non-stoichiometric palladium hydride (PdH_x, 0<or=x<or=1) is described. This model is applied within the cluster-Bethe formalism. Local densities of states, charge densities, total energy and heat of formation are calculated, and the results are compared with the authors' previous one-phase theory and with experiment. The two-phase model gives results which are closer to experimental findings than those of the one-phase theory, especially for lower values of x(x<0.5).