Discretionary Housing Payment: what it is and how to apply

If your housing benefit or Universal Credit housing cost element does not fully cover your rent, you may be able to apply for a Discretionary Housing Payment (DHP) from your local council. You will find out what a DHP is, who can apply, and what to do if your application is refused.

What is a Discretionary Housing Payment?

A Discretionary Housing Payment is a payment made by your local council to help with housing costs when your housing benefit or Universal Credit housing cost element does not cover all of your rent. The council has a budget for DHPs each year, and it decides how to allocate that budget based on applications it receives.

DHPs are not a legal entitlement, the council has discretion about whether to award them and in what amount. However, the council must have a policy for how it makes decisions, and that policy must be fair and reasonable.

Who can apply for a DHP?

You can apply if:

• You receive Universal Credit with a housing costs element, or
• You receive Housing Benefit, and
• You have a shortfall between your benefit and your rent

Common situations where people apply for DHPs include:

• A gap between the Local Housing Allowance (LHA) rate and the actual rent you pay
• A reduction in benefit because of the bedroom tax (spare room subsidy)
• A benefit cap reducing the housing support you receive
• A loss or reduction in benefit while an appeal is pending

Can a DHP cover other housing costs?

In some cases, yes. DHPs can sometimes be used to help with:

• A deposit or rent in advance when moving to a new property
• Moving costs if you need to move to a more affordable home

Speak to your local council about what they will consider.

How do I apply for a DHP?

Each council has its own application form and process. You can usually find the form on your council's website or ask at the housing benefit office.

When you apply, it helps to:

• Explain your circumstances clearly, why there is a shortfall, what you have tried to do to reduce costs, what impact the shortfall is having on you and your family
• Provide supporting evidence, bank statements, letters from your landlord, medical evidence if relevant
• Explain any vulnerability, if you have a health condition, disability, or caring responsibilities, this can be relevant

What happens if my application is refused?

If your application is refused, or you are awarded less than you asked for, you can ask the council to review its decision. There is no formal appeal to a tribunal, the review is an internal process, but the council must reconsider fairly.

If you think the council has applied its policy incorrectly or treated you unfairly, you can complain through the council's complaints process or to the Local Government and Social Care Ombudsman.

Is a DHP a long-term solution?

DHPs are generally intended as short-term help while you sort out a longer-term solution, for example, while you look for a more affordable property, or while a benefit dispute is resolved. Most councils will not award an open-ended DHP indefinitely.

If your housing costs are consistently unaffordable, it is worth taking advice about your options, including whether you might qualify for social housing, whether there is a more affordable private property in the area, or whether your benefit entitlement is being calculated correctly.

Does a rent shortfall affect my housing disrepair rights?

No. Your landlord's duty to maintain the property in repair applies regardless of whether you are in rent arrears or have a benefit shortfall. A landlord cannot use a rent shortfall as a reason to avoid carrying out legally required repairs.

When should I contact Support for Tenants?

We help tenants in privately rented homes with housing disrepair claims. If there is disrepair in your home that your landlord has not fixed, call us regardless of your benefit situation.

Call us on 0800 030 4669. No upfront cost. You only pay if you win, and the fee comes out of the compensation, not your pocket. If you don't win, you pay nothing.

Sources

• Discretionary Financial Assistance Regulations 2001 (legislation.gov.uk)

Related articles

• Local Housing Allowance shortfall, what to do when your benefit does not cover your rent