Discretionary Housing Payments

What are Housing Payments?

Housing Payments are funded by the Crisis and Resilience Fund which is grant funding provided to Local Authorities from the UK Government. 

Housing Payments can provide financial support towards housing costs and are paid by the Local Authority when they are satisfied that an applicant requires further financial assistance. 

The Council’s funding for Housing Payments is limited. The payments are discretionary and can only be granted when certain criteria and eligibility are met.

What are the criteria for a Housing Payment?

These payments can be made to claimants who are entitled to either:  

• Housing Benefit, or
• Universal Credit with housing costs towards rental liability. This includes Shared Ownership properties which carry a rental liability. 

And require support with (but not limited to):

• rent deposits and rent in advance  
• lump sum costs associated with a housing need such as removal costs  
• reductions in Housing Benefit or Universal Credit Housing Costs where the benefit cap has been applied   
• reductions in Housing Benefit or Universal Credit Housing Costs for under-occupation in the social rented sector   
• reductions in Housing Benefit or Universal Credit Housing Costs as a result of Local Housing Allowance restrictions
• rent officer restrictions such as local reference rent or shared room rate  

Housing payments funding may be used for shortfalls between housing support and actual rent.

Claimants must be able to evidence that they require further assistance with housing costs. 

What types of shortfall can a Discretionary Housing Payment cover?

The various types of shortfalls that a DHP can cover include (but not limited to):

• Reductions in Housing Benefit or Universal Credit where the benefit cap has been applied;
• Reductions in Housing Benefit or Universal Credit following the removal of spare room subsidy for tenants of Registered Social Landlords;
• Reductions in Housing Benefit or Universal Credit as a result of local housing allowance restrictions;
• Rent officer restrictions such as local reference rent or shared room rate;
• Non-dependant deductions in HB, or housing cost contributions in Universal Credit;
• Rent shortfalls to prevent a household becoming homeless whilst the housing authority explores alternative options;
• Reductions due to income tapers;
• Rent deposits or advance payments for a change of address, where the customer is yet to move and is entitled to Housing Benefit or the housing element of Universal Credit at the current address;
• Help with a lump sum cost associated with moving home, where the customer is yet to move and is entitled to Housing Benefit or the housing element of Universal Credit at the current address;

What types of shortfall cannot be covered?

There are certain elements of a claimant’s rent that cannot be included in housing costs for the purposes of a Discretionary Housing Payment.

These include:

• ineligible service charges
• increases in rent due to outstanding rent arrears
• certain sanctions and reductions in benefit.

How long will a Discretionary Housing Payment be granted for?

Awards are discretionary and can only be for a short period of time to enable the customer to seek further help or advice or, in some cases, alternative accommodation.
 

How much Housing Payment will be awarded?

Awards are discretionary and each application for a Discretionary Housing Payment will be looked at individually. However, the level of the award must not exceed the weekly or monthly eligible rent on the home.

The Customer’s overall financial and personal circumstances will be taken into consideration.
 

How will the Housing Payment be paid?

An award of Housing Payment will be paid within the normal payment of Housing Benefit.

If the customer is receiving Universal Credit, then bank details must be provided so that a payment can be made to the customer’s bank account.
 

How do I claim a Housing Payment?

You should complete the online Discretionary Housing Payment claim form .

Please give as much information as possible about your circumstances and why you need additional help with your housing costs.

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