Discretionary Housing Payment – A Guide to Additional Housing Support

Discretionary Housing Payment: What It Is and How to Apply

For tenants who find that their housing benefit or Universal Credit (housing element) does not fully cover their rent or housing-related costs, Discretionary Housing Payments (DHPs) can provide much-needed financial assistance. Administered by local councils, these payments are designed to help people facing financial hardship by offering additional support for housing costs. However, DHPs are not guaranteed, and understanding how to apply and meet eligibility requirements is crucial for those seeking this extra help.

What Is a Discretionary Housing Payment?

A Discretionary Housing Payment is a payment provided by local councils in the UK to help tenants with housing costs that are not fully covered by their normal benefit entitlements, such as Housing Benefit or the housing costs element of Universal Credit. These payments are discretionary, meaning local authorities have the power to decide whether or not to grant them, based on individual circumstances.

DHPs are designed to cover various shortfalls or temporary financial issues. They can be used for:

• Rent shortfalls: If your benefit does not cover the full cost of your rent.
• Deposits or rent in advance: If you need help securing a new property.
• Moving costs: Financial assistance with costs associated with moving to a more affordable property.
• Housing adaptations: If you need to make your home more accessible due to a disability.

Unlike standard housing benefits, Discretionary Housing Payments are not guaranteed and are subject to the availability of council funding. Each local authority operates its own system for assessing applications, and the amount and duration of a DHP can vary based on individual cases.

Who Is Eligible for a Discretionary Housing Payment?

To be eligible for a Discretionary Housing Payment, you must be in receipt of Housing Benefit or the housing costs element of Universal Credit. If you are not already receiving one of these benefits, you will not qualify for a DHP.

Eligibility is also determined based on the following factors:

• Financial hardship: Applicants must demonstrate that they are struggling to meet their housing costs despite receiving benefits.
• Exceptional circumstances: DHPs are often awarded when tenants face unusual or difficult situations, such as sudden loss of income, illness, or the risk of eviction.
• Inability to cover rent shortfalls: If your housing benefit or Universal Credit does not fully cover your rent, this could strengthen your case for a DHP.
• Short-term assistance: DHPs are usually awarded as a temporary measure. They are not intended as long-term solutions to housing benefit shortfalls.

Local councils will also take into account the size of the property and whether the applicant could realistically move to a more affordable home.

How to Apply for a Discretionary Housing Payment

To apply for a Discretionary Housing Payment, you must contact your local council and complete an application form. Most councils provide these forms online, and the process typically involves the following steps:

1. Complete the application form: Provide detailed information about your financial circumstances, income, and housing costs. You will need to explain why your benefits do not cover your rent and how a DHP would help you.

2. Submit evidence: You may be required to submit supporting documents, such as bank statements, proof of rent payments, and letters from your landlord.

3. Assessment: The council will assess your application, considering factors such as your overall financial situation, housing needs, and whether the shortfall is temporary or ongoing.

4. Outcome: You will receive a decision from the council, outlining whether your application was successful, how much you will receive, and for how long the payment will last.

5. Renewal or Extension: If your situation does not improve and you need continued support, you can reapply for a DHP when the initial payment period ends. However, this is at the discretion of the council and may depend on the availability of funds.

What Can Discretionary Housing Payments Cover?

DHPs are meant to cover housing-related expenses that benefit payments do not fully address. Here are some examples of what DHPs may be used for:

• Rent shortfalls: This includes shortfalls caused by rent increases, benefit caps, or changes in income.
• Rent arrears: While not typically used for this purpose, in some cases, DHPs can help clear rent arrears if they risk leading to eviction.
• Deposits and rent in advance: If you need to move to a new home and cannot afford the deposit or rent in advance, a DHP may assist with these upfront costs.
• Housing costs due to a disability: For tenants needing to make disability-related adaptations to their homes, DHPs can sometimes cover these costs.
• Bedroom tax mitigation: DHPs can help those affected by the Spare Room Subsidy (commonly known as the bedroom tax), especially in cases where moving to a smaller property is not feasible.

How Fraser Bond Can Assist You

At Fraser Bond, we understand the complexities of navigating housing costs, benefits, and additional financial support options like Discretionary Housing Payments. Our property experts are here to help you with:

• Guidance on DHP applications: We can assist you in understanding the application process, ensuring that you provide all necessary information to strengthen your case.
• Advice on rental properties: If you're struggling to cover your current rent, we can help you explore more affordable housing options or negotiate better terms with landlords.
• Property search: If you need to relocate to a property with lower rent, Fraser Bond can help you find suitable housing that meets your budget and personal requirements.
• Legal and financial advice: We work closely with legal and financial advisors who can provide expert assistance on managing rent arrears, eviction risks, and housing benefit shortfalls.

Conclusion

Discretionary Housing Payments can provide valuable support for tenants facing housing-related financial difficulties. However, the application process can be complex, and eligibility is based on a number of factors. By understanding how to apply and what DHPs can cover, tenants can better manage their housing costs and avoid eviction or financial hardship.

For personalised guidance on your housing situation or help in finding affordable properties, Fraser Bond is here to assist. Contact us today to learn more about how we can support you in securing the right financial and housing solutions.