Discretionary Housing Payments

Introduction

From 1 April 2026, DHPs will be replaced by the Housing Payment strand of the CRF. 

The Crisis and Resilience Fund (CRF) has been made available to councils in England to support low-income households. This funding covers the period of 1 April 2026 to 31 March 2029 inclusive and includes specified funding for housing support.

A Housing Payment may be awarded when it is considered that a claimant requires further financial assistance towards housing costs and is in receipt of either Housing Benefit (HB) or Universal Credit (UC) with housing costs towards rental liability.  ‘Housing costs’ are not defined, allowing the council broad discretion for interpretation. In general, ‘housing costs’ refer to the rent you have to pay, as well as:

• rent in advance
• rental deposits
• other lump sum costs associated with a housing need, such as removal costs

Background

Housing Payments are not payments of benefit. They are payments made at the Council’s discretion. They are made in addition to Housing Benefit or Housing Costs within Universal Credit, and do not form part of it. The legislation gives Local Authorities broad discretion in awarding Housing Payments but ordinary principles of decision making must be followed to ensure that we are acting fairly, reasonably and consistently.

Housing Payments will be made to alleviate the position of people experiencing financial hardship.

• a customer does not have a statutory right to receive an award.
• the amount that can be paid out by a council in any financial year is restricted by the Government.
• To be eligible to be considered for a Housing Payment a customer must be entitled to Housing Benefit or Housing Costs within Universal Credit and require extra help to meet their housing costs.

Housing costs may include rental liability, rent in advance payments, deposits, other lump sum costs associated with a housing need such as removal costs.

The council will consider making a Housing Payment to customers who can demonstrate a need for further financial assistance with their housing costs. All applications will be treated on their individual merits and decision making will be fair, equal and consistent.

The council will seek to:

• Prevent homelessness.
• Alleviate hardship and safeguard tenancies.
• Help with the prevention of immediate eviction.
• Reduce the need and use of temporary accommodation for homeless households.
• Support moves to sustainable tenancies.
• Support vulnerable tenants in the community.
• Support vulnerable young people in the transition to adult life.
• Support people into employment and sustain people in employment.
• Keep families together.
• Support people through difficult life events.

Housing Payments may be used for:

• Rent shortfalls because of Local Housing Allowance restrictions.
• Reductions in HB or UC where the benefit cap has been applied
• Reductions in HB or UC for under-occupation in the social rented sector.
• Rent arrears in order to prevent homelessness.
• Rent shortfalls because of non-dependent deductions.
• Rent deposit or rent in advance for a property that the customer is yet to move into if they are already entitled to HB or UC Housing Costs at their present home.
• Removals or storage costs where moving home is essential – eg moving out of temporary or unsuitable accommodation

Housing Payments cannot be used to reduce council tax liability. If you need help with your council tax, please apply to the council for Council Tax Support.

Housing Payment decisions will be made in accordance with the principles of good decision making and decision makers will act fairly, reasonably, and consistently. The level of award may cover all or part of a shortfall or assist with the cost of starting or retaining a tenancy.

Claiming Housing Payments

The regulations specify that there must be a claim for Housing Payments to the council before the Local Authority can consider making an award.

A claim can be accepted from the person entitled to Housing Benefit or Universal Credit or from someone acting on their behalf where appropriate.

The application form is on the council’s website.

• The Council will accept a claim electronically
• On request or in appropriate circumstances, the Council will assist the claimant with completion of an electronic or telephone application form
• Additional information may be required to support a claim including evidence of rent arrears, bank statements and household income
• On receipt of an application the Council may contact the customer by telephone to discuss the claim further
• It is in the customer's interest to provide as much information as possible to support their claim. Where a customer cannot or does not provide additional information to support their claim, the Council will make a decision based on the information it has available.

Housing Payment award

In deciding whether to award a DHP, the Council will take into account:

• a shortfall between HB or UC Housing Costs and rental liability
• any steps taken by the customer to reduce his or her rental liability
• the financial and medical circumstances (including ill health and disabilities) of the customer or their household
• the income and outgoings of the customer and their household
• any savings or capital that might be held by the customer or their household
• the level of indebtedness of the customer and his or her family
• any exceptional circumstances
• the potential consequences of not making an award including the potential for the customer to become homeless and the possible impact on other agencies and Council services
• the probable consequences of rent arrears for the customer or family members, especially if any of them are vulnerable by reason of age, sickness or disability
• the cost and availability of suitable alternative accommodation within the city.
• any other relevant information brought to the attention of the Council.

Period of award

• The length of an award is discretionary and the Council will consider the individual circumstances of each case
• Awards will not normally span financial years, although you can re-apply if your circumstances are such that you still need financial support
• The Council will consider any reasonable request for backdating an award
• The customer will be notified of the period of the award
• The minimum period for an award  is one week.

Amount of award

The amount awarded will be based on the individual circumstances, however where the award is to meet a shortfall, the level of Housing Payment must not exceed the weekly or monthly eligible rent for the customer’s accommodation. For lump sum payments, such as Bonds or Rent in Advance this limit does not apply.

Payment

The Council will decide the most appropriate person to pay based upon the circumstances of each case. This could include paying:

• the customer
• a partner
• an appointee
• a landlord (or an agent of the landlord)
• a third party

Housing Payment awards will normally be paid directly into a bank account by electronic transfer (BACS).

Notification

The Council will notify the customer of the outcome of their application. Where the application is unsuccessful, the Council will set out the reasons why this decision was made and explain the right of review. Where the application is successful, the council will advise:

• the amount of Housing Payment awarded
• the period of the award
• the method of payment
• the requirement to report a change in circumstances

Changes of circumstances

Many changes of circumstances which affect a customer’s HB or UC Housing Costs entitlement may also affect their  award. The Council will use such information to review the level of the award.

Customers should tell the Council of any changes to their circumstances which may affect their award, including changes that may have no impact on their HB or UC Housing Costs award.

The right to a review

Housing Payments are not payments of HB / UC Housing Costs and are not subject to the statutory appeals mechanism. The Council acknowledges that customers may be dissatisfied with a Housing Payment decision in certain circumstances including:

• refusal to award a Housing Payment
• decision to award a reduced amount of Housing Payment
• decision not to backdate a Housing Payment.Where a customer is dissatisfied with a DHP decision they may request that the decision be reviewed.

Where a customer disagrees with a Housing Payment decision they should contact the Council within a calendar month of the decision and request that the decision be reviewed.

• The original decision will be reviewed by another officer
• The customer will be informed of the outcome of the review

 Where, after review, the customer remains dissatisfied they may contact the Local Government Ombudsman.

Overpayments

The Council will consider recovery of a Housing Payment if it is decided that the award has been overpaid as a result of:

• a misrepresentation or failure to disclose a material fact by the claimant; or
• an error was made when the application was determined.

A Housing Payment cannot be recovered from ongoing HB or UC, and there are no provisions to recover from other prescribed benefits.

Fraud

The Council is committed to the prevention and detection of fraud and the protection of public funds. Cases of suspected fraud will be investigated by counter fraud officers and this may result in criminal proceedings being instigated.