Discretionary Housing Payments

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Throughout the governments Welfare Reform in respect of Housing Benefit, there has been repeated reference by the government to Discretionary Housing Payments as a safeguard for those affected by: -

 

• Housing Benefit reductions in private sector
  
• the extension of shared room rate in private sector
  
• the introduction of the under occupation reduction for social tenants
  

I thought it might be helpful to provide some basic information about Discretionary Housing Payments (DHPs).

 

Since 2001, each Council has had a discretion to offer extra assistance to those in receipt of: -

 

• HB who require additional financial assistance to meet their rent costs.
  
• CTB who require additional financial assistance to meet their council tax costs.
  

The amount that a Council can spend is set by the DWP and varies by Council and by year. details of Council's funding limits for 2013/14 can be found at http://www.dwp.gov.uk/docs/s1-2013.pdf

 

Please note that with effect from 1 April 2013, DHPs will no longer be payable to assist with Council Tax costs. It will solely be for help with rent costs, and will be available to those in receipt of HB or Universal Credit.

 

If you are not receiving HB/UC, you will not be eligible for a DHP.

 

If your HB/UC meets your full rental costs, you will not be eligible for a DHP.

 

DHPs are not part of the normal Housing Benefit or Council Tax Benefit schemes. As the name suggests, any payments are made at the Council's discretion.

 

The DWP guidance advises that DHPs should not be used as a way to get round the application of any standard HB restrictions or the government's Welfare Reform.

 

There are no rules that give anyone a right to a payment, but the Council may be able to pay you Discretionary Housing Payments if they believe that you need extra financial support.

 

Normally to be awarded a DHP, you would need to have unusual or extreme circumstances which are causing hardship or mean that you're at risk of becoming homeless.

 

Situations where DHPs may be payable include: -

 

• Foster carers who require additional rooms not allowed for in HB
  
• Disabled people living in significantly adapted properties
  
• People who are unable to pay the shortfall between rent and HB due to other unusual circumstances
  

DHPs cannot be paid to meet service charges that don't count for Housing Benefit - things like charges for water, heating or meals.

 

As there is only a limited amount of money available to pay DHPs, most awards would only be paid for short periods of time to allow the person to make alternative arrangements to meet their rent costs.

 

I am aware that there is currently information being circulated through social network sites advising that anybody affected by the 'bedroom tax' can have the shortfall met by DHPs. This information is simply not true. The amount of money that the DWP have allowed for DHPs is a fraction of the reduction in HB caused by the 'bedroom tax'. So most applicants would be unsuccessful.

Edited March 8, 2013 by citizenB

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DHPs are only available to those who rent their homes and receive housing benefit