Discretionary Housing Payment Policy

Housing Benefit & Universal Credit

Discretionary Housing Payments Policy

Contents

Background……………………………………………………………………………. 1

Deciding whether to award a DHP…………………………………………………… 3

What types of shortfalls can DHP cover………………………………………. 4

What DHPs cannot cover……………………………………………………….. 4

The level of DHP…………………………………………………………………. 5

Rent deposits & rent in advance………………………………………………...5

DHPs and two homes……………………………………………………………. 7

Claiming a DHP…………………………………………………………………………...7

Administering DHPs…………………………………………………………….………8

Authorised decision makers…………………………………………………….. 8

Period of Award…………………………………………………………………...8

The amount of DHP awarded…………………………………………………… 9

A quick step guide for assessing DWPs………………………………………. 10

The effect of an award…………………………………………………………… 10

Changes of Circumstance………………………………………………………. 10

Method of payment………………………………………………………………. 11

Notification………………………………………………………………………… 11

Overpayments……………………………………………………………………..12

Dispute Procedure……………………………………………………………….. 12

Fraud………………………………………………………………………………. 13

Assurance Arrangements…………………………………………………………….. 13

DHP Claim Form…………………………………………………………………. 13

Monitoring arrangements……………………………………………………….. 13

Appendix A: Good practice Guide……………………………………………………15

Section 1: Support for customers affected by the benefit cap………………..15

Section 2: Support for customers affected by the size criteria……………….18

Significantly adapted accommodation……………………………. 19

Section 3: Support for customers affected by LHA restrictions………………21

Section 4: Considering DHP strategy to take account of increased

demand………………………………………………………………..22

Appendix B: What DHPs cannot cover……………………………………………....23

Dated: 1

September 2001

Updated: June 2006

Updated: April 2008

Updated October 2011

Updated October 2012

Updated March 2013

Updated May 2016

Updated Oct 2018

London Borough of Havering

POLICY FOR THE AWARD OF DISCRETIONARY HOUSING

PAYMENTS FROM APRIL 2013

BACKGROUND

1.0 From 2 July 2001, a new scheme was introduced which granted Councils new

powers to make Discretionary Housing Payments(DHP) to top up the Housing

Benefit and Council Tax Benefits Statutory Schemes. The legislation

governing DHP’s can be found in The Discretionary Financial Assistance

Regulations 2001 (S1 001 / 1167). (DFA Regulations). From 1 April 2013

with the introduction of the local Council Tax Support scheme, DHPs are only

available as a top up for HB. Please see the combined Council Tax

Discretionary Reduction and Local Council Tax Support Scheme Hardship

policies for hardship payments for CTS.

1.1 The main features of this scheme are detailed as follows:

• a claimant does not have a statutory right to a payment

• the amount that can be paid by an Authority in any financial year is cash-

limited by the Secretary of State. As such, within any financial year,

applications paid will be on a first come, first served basis subject to meeting

the criteria. Should the pot run out, the payment will have to be delayed to the

following year.

• the operation of the scheme is for Council’s to determine apart from in a few

specific areas.

• It is completely separate to the Statutory Housing Benefit Scheme apart from

the fact that HB must be in payment and the weekly DHP amount awarded

must not exceed the maximum HB that could be awarded in the case.

1.2 Subsequent amendments to the Discretionary Financial Assistance

Regulations ensure the scheme covers the introduction of Universal Credit

and the abolition of Council Tax Benefit from April 2013.

1.3 In addition, a good practice guide is included at Appendix A advising how

DHPs can be used to provide support to customers affected by some of the

key welfare reforms, including:

• the benefit cap

• removal of the spare room subsidy in social rented sector

• changes to Local Housing Allowance (LHA) rates, including the 4 year freeze

THE COUNCIL’S POLICY

Purpose

2.0 The purpose of this policy is to specify how the scheme will be operated by

this Council and to indicate the factors that will be considered when deciding

if a DHP can be made. The Council has a duty to treat all claimants fairly,

reasonably & consistently when administering the scheme.

Deciding whether to award DHP-

2.1 Before you make an award you must be satisfied that the claimant is entitled

to :

Housing Benefit (HB): or

Universal Credit (UC); and

Has a rental liability; and requires further financial assistance with housing

costs.

What types of shortfalls can DHPs cover?

2.2 The various types of shortfalls that a DHP can cover include ( but are not

limited to:

• reductions in HB or UC where the benefit cap has been applied;

• reductions in HB or UC due to the maximum rent (social sector) size criteria;

• rent officer restrictions such as local reference rent or shared accommodation

rate

• reductions in HB or UC as a result of LHA restrictions;

• rent shortfall to prevent a household becoming homeless whilst the housing

authority explores alternative options;

• non-dependant deductions;

• income tapers

• any other policy change that limits the amount of HB payable, eg removal of

family premium

Example

Harry has to move from his bed-sit in central London as his HB no longer meets his

rent.

His only income is from a part-time job with his Net pay amounting to £100 per

week. With the assistance of his LA he finds a bed-sit in another borough within the

LHA rate with a rent of £101 per week.

He now has bus fares of £20 per week instead of being able to walk to work. This

leaves him struggling to pay his rent and meet his day- to-day living expenses.

He discusses his problems with the Citizens Advice Bureau and they suggest he

claims a DHP. One of the LAs objectives is to use DHPs to help people maintain

their employment and it will consider disregarding fares to work in deciding on the

amount of a DHP.

The LA awards a DHP of £13 which is the difference between his HB award and

what the award would be if additionally the fares were included in the disregard.

What DHPs cannot cover (for further detail see Appendix B)

2.3 There are certain elements of a customer’s rent that cannot be included in

housing costs for the purposes of a DHP because the regulations exclude

them.

Excluded elements are:

• ineligible service charges

• increases in rent due to outstanding rent arrears

• certain sanctions and reductions in benefit.

• HB that is suspended

• Shortfalls caused by overpayment recovery

2.4 A customer who is receiving local council tax support only, with no rental

liability (e.g. an owner occupier) is not eligible to apply for a DHP.

The level of a DHP

3.0 If the purpose of the DHP is to meet a shortfall it is entirely up to the Local

Authority how much of the shortfall is met. However, in the case of a shortfall

the level of the DHP must not exceed

o the weekly eligible rent in the case of an HB claimant

o the amount calculated in accordance with Schedule 4 of the UC

regulations(i the value stated for housing costs on a UC award notice)

3.1 Eligible rent means all the payments specified in Regulation 12(1) of the

Housing Benefit Regulations 2006 or the Housing Benefit (Persons who have

attained the qualifying age for state pension credit) Regulations 2006 except

those specified in Regulation 12(3)(b)(i) to (iii) of those regulations, ie

deductions in respect of certain specified service charges.

3.2 Following the introduction of UC, LAs will have to consider claims from

customers who are not receiving HB. Customers receiving UC will not receive

a specific amount towards housing costs therefore we will decide on the

amount of DHP to award, providing it does not exceed the weekly eligible

rent.

3.3 For lump sum payments such as deposits or rent in advance this limit does

not apply subject to having regard to the overall DHP budget.

Payment cycles

4.0 The Local Authority decides the frequency of payments. Payments to meet

shortfalls can be made at the same frequency as the HB or UC payment.

Income and other resources

4.1 The Local authority decides how you treat any income or other resources for

the purposes of deciding whether to award a DHP.

For example, we can decide to disregard income from disability related

benefits as they are intended to be used to help pay for the extra costs of

disability. However, we will also bear in mind that such money might be

committed to other liabilities for which the money was intended, such as

Motability schemes, provision of care etc.

4.2 We will also take account of unavoidable costs that the customer may have

such as fares to work. This may include, for example, people who have had to

move as a result of changes in the Local Housing Allowance rates and, as a

result, are now incurring higher travelling costs.

Rent deposits and rent in advance

5.0 DHPs can be made for a rent deposit or rent in advance schemes for a

property that the claimant is yet to move into if they are already entitled to HB

or UC at their present home.

The Local Authority should be satisfied that:

o the property is affordable for the tenant; and

o the tenant has a valid reason to move; and

o the deposit or rent in advance is reasonable

5.1 Using DHPs for this purpose may be particularly appropriate to help existing

customers move to alternative accommodation where their award of HB has

been restricted following one of the welfare reforms. It may also be

appropriate to consider using DHPs for this purpose where the LA rent

deposit scheme is limited or exhausted.

5.2 The regulations are wide enough to permit this on the basis of a customer’s

entitlement to one of the eligible benefits at their current home. The

regulations do not say that the housing costs to which the DHP relates have

to be housing costs relating to the property for which the benefit has been

awarded.

5.3 Although Regulation 4 of the regulations places a limit on the DHP award so

that it does not exceed the weekly eligible rent on the customer’s home, the

limit only applies where the award is calculated as a weekly sum, for

example, to meet a shortfall.

5.4 In a case where we are awarding a DHP for rent in advance or a deposit, the

weekly limit does not apply as you are awarding a lump sum to meet an

immediate housing need.

5.5 When awarding a DHP for a deposit, the Local Authority can include

information about landlords legal obligations to protect any deposit paid in a

Government approved tenancy deposit protection scheme. Compliance with

this requirement will help reduce the need for future help with deposits. See

link: Deposit Protection schemes for private tenants for further information.

5.6 When making a DHP to assist the customer with securing a new tenancy

consideration should be given to making the payment to the landlord rather

than the customer.

5.7 As a lump sum payment for rent in advance is not made in respect of a

period, we do not have to be satisfied that the customer is entitled to HB or

UC other than at the point you make the award.

5.8 If the rent in advance is for a property outside of our area this does not

prevent us from making a payment as the customer is currently in receipt of

HB or UC in our LA area.

5.9 Before awarding a DHP for rent in advance or a deposit it should be

established with the customer whether they:

• are due to have a deposit or rent in advance in respect of their existing

tenancy returned to them

• have received assistance from the LA through a rent deposit guarantee

scheme or similar.

5.10 Once a DHP has been made to the customer for rent in advance or a deposit

and used for that purpose legislation does not provide for it to be refunded.

DHPs and two homes

6.0 The regulations permit a person to have help through DHPs with rent due on

a property they have moved into when treated as temporarily absent from

their home, for example because of domestic violence.

6.1 In this case, if the customer is treated as liable for rent on both properties,

and in both cases there is a shortfall, they could have DHPs in respect of both

properties subject to the weekly limit on each property.

6.2 The regulations do not say that DHPs can only be paid in respect of one

property; they just limit the amount that can be paid when the DHP does

relate to rent on a person’s home.

6.3 If the customer is only treated as liable for payments on one dwelling but is

having to pay rent on two, for example they are temporarily absent from their

normal dwelling to stay near a child receiving treatment in hospital, a weekly

DHP could be made to assist with the temporary accommodation up to the

level of the weekly eligible rent in the dwelling from which they are temporarily

absent.

Claiming a DHP

7.0 A claim for a DHP must be made on a claim form approved and issued

without charge by the Council

7.1 A claim for a DHP may be made initially in writing, verbally or electronically.

The Council will issue the applicant with its DHP application form for

completion. For the claim to proceed the applicant must return the form to the

Council within one calendar month of its issue.

7.2 All applications for a DHP must be made by the benefit claimant of HB/UC

and in the case of a married or unmarried couple as decided for statutory

HB/UC purposes must be made jointly.

7.3 The Council may request any reasonable evidence in support of an

application for a DHP. The Council will make such requests in writing or

electronically. The applicant should provide the evidence within one calendar

month. Evidence and information provided to decide the HB/UC claim may

be taken into account.

7.4 If a customer is in receipt of UC, you will not necessarily hold details of the

customer’s income or rental liability. However, data sharing powers

introduced on 2 July 2012 provide a gateway for LA’s to obtain relevant

information from DWP to assess claims for DHPs.

7.5 Customers will be advised to seek advice and assistance from the Citizens

Advice Bureau, Welfare Rights Agencies and our own Customer Services in

order to help gain evidence to support their claim.

7.6 If the applicant does not provide the required evidence, within a reasonable

amount of time the application will be treated as defective. As a guide four

weeks would seem a reasonable amount of time, though give consideration to

the fact that some customers are the very vulnerable and may need longer or

help getting the information.

7.7 The Council may in any circumstances verify any information or evidence

provided by the claimant(s) by contacting third parties, other organisations

and the claimant(s).

7.8 Reports or applications from the Homeless Person’s Unit supporting a

customer’s claim for a DHP may be provided. Customers claiming Housing

Benefit through the Homeless persons unit are by nature, vulnerable and

would have been interviewed by a Homeless Advise Officer.

Administering DHPS:

Authorised Decision Makers

8.0 All applications will be passed to the Quality Assurance & Appeals Officer for

consideration.

8.1 Recommendations will be checked by a Benefit Supervisor/Exchequer

Controls Manager before being authorised by the Benefits

Manager/Exchequer Controls Manager.

8.2 Delegated powers for authorisation will be given to the Exchequer Controls

Manager within the section also.

Period of award

9.0 The Council will decide the length of time for which a DHP will be awarded if a

payment can be made under this scheme.

9.1 The minimum period for which the Council will award a DHP is one day.

9.2 There is no time limit to the length of time over which DHP may be made.

However, a DHP award will normally be paid for between 3 to 6 months.

However, in exceptional circumstances, a long term or indefinite award can

be considered eg if property has been significantly adapted or there are

particular medical conditions to consider.

9.3 The Council may award a DHP for a shorter period depending on the

circumstances of the case. This may for example be to assist someone whilst

they find alternative accommodation.

9.4 The Council will consider any reasonable request for backdating an award of

DHP. All such requests should be in writing and clearly give the reasons why

the application was not made at an earlier time. The Council reserves its

discretion not to make backdated awards of DHP, but in any case will not

make awards where:

a) the underlying conditions for an award are not met; and

b) the application was made more than 6 months after the period for

which it is made.

9.5 Any delay in deciding the award of HB/UC under the statutory scheme will be

taken into account and in the event that the Council has failed to decide such

a claim within the DHP 6 month time limit so as to grant HB/UC the

backdating time limit will be waived and the claimant will have one calendar

month from the date of the Statutory HB/UC claim being decided in which to

make a claim for a DHP

The amount of DHP awarded

10.0 The award of a DHP will be the exception rather than the normality. The

Council will consider whether to award a DHP and the amount of any such

award. It will take into account:

• the amount of Housing Benefit or Universal Credit in payment;

• the liability of the applicant to pay rent, net of any deductions specified by

Regulation 3 of the Discretionary Financial Regulations 2001;

• Steps taken by the claimant to reduce their rental liability

• the circumstances surrounding the application;

• the financial and social health/medical circumstances of the applicant, their

partner and any dependants and any other occupants of the applicant’s

home;

• the income and “essential” expenditure of the applicant, their partner and any

dependants or other occupants of the applicant’s home;

• any savings or capital that might be held by the applicant or their family or

could be made available to the applicant or their family;

• the availability and any steps taken by the claimant(s) to obtain extra income

or to reduce expenditure of the applicant or their family;

• the level of indebtedness of the applicant(s) and their family;

• the exceptional nature of the claimant(s) and their families circumstances

• whether there have been any previous awards of DHP; and if so

a) the number, length and dates of those awards; and

b) what action the applicant has taken to reduce the need for a DHP;

• Reasons for moving from previous address

• If the customer has children the following questions may help:

• Where do the children attend School – Do they have to travel? Are there

particular reasons for attending their School i.e. religious etc.

• Do you receive any help from the Father/mother of the children? i.e. help with

food , clothing or pocket money for children.

10.1 In order to help make a decision or collect appropriate information

consideration to interviewing or visiting (where necessary) each DHP claimant

should be made.

10.2 Consideration will also be given to the impact any award of DHP will have on

the Council’s budgets and its ability to make further awards of DHP to others

within the financial year and the impact the non-award of a DHP will have on

the applicant and other DHP’s.

The Local authority will also consider the amount of money available to the

Council to spend on this scheme, within the cash limits specified by the

Secretary of State. The Council will take into account expenditure and

estimated committed expenditure.

10.3 The award of DHP at one time does not guarantee that a further award will be

made at a later date even if the claimant’ circumstances remain the same.

The Council cannot fetter its discretion in making one decision on a claim with

regard to a later claim by the same claimant(s).

10.4 The amount of any DHP award will be decided by the Council taking into

account the above matters and limited to the statutory limits imposed by DFA

Regs. The Council may decide not to award anything or any amount up to

the maximum allowed under the DFA Regs.

A quick step by step Guide for assessing DHPS

11.0 If application is for Housing Benefit consider a redetermination. This can be

done whilst writing out and waiting for further evidence.

11.1 Has customer provided you with all the relevant information to substantiate

their application? E.g. medical certificates

Look for any other means of Benefit entitled to the customer e.g. Are we

making a higher Non Dependant deduction? Or is the applicable amount

lower than customers assessed income.

11.2 If not recommending payment refusal letter can be sent though reasons not to

be paying need to be clearly indicated.

11.3 If recommending a discretionary payment, complete the proforma, giving

detailed reasons and supporting documentation why it should be awarded. In

awarding DHP regard should be given to the effect it will have as indicated

earlier in this policy. (A record of applications authorised is available in the

office as examples.)

11.4 Discretionary notifications will be produced through Academy and will be

edited by the Quality & Assurance Team to indicate why it was agreed.

The effect of an award

12.0 In making any award consideration will be given to achieving the following:

Encouraging / sustaining a return to work

Safeguarding the home

Helping customers to help themselves

Keeping families together and the vulnerable in the community

Help during temporary crises or events

Changes of Circumstances

13.1 Applicants for DHP must be in receipt of Housing Benefit or Universal Credit.

Therefore remain under a general requirement to inform us of changes in

their circumstances that might affect their claim for HB/UC.

13.2 The Council’s policy will be that a change in the applicant’s circumstances will

not affect the level of their DHP providing:

• they retain entitlement to Housing Benefit or Universal Credit;

• the level of their Housing Benefit or Universal Credit, plus the DHP does not

exceed their liability to pay rent, less the deductions specified in Regulation 3

of the Discretionary Financial Regulations 2001;

• the change of circumstance was specifically defined as being critical to the

award of the DHP in the notification of the award to the claimant(s). The

Council may specify charges in circumstances that will need to be notified to

the Council as it is considered that the amount or need for a DHP will change

on such an event. In these cases the Council may revise the DHP award.

Method of Payment

14.0 We will decide to whom to make payment of the DHP based upon the

circumstances of each case. This could include:

• the applicant;

• their partner;

• an appointee;

• their landlord (or an agent of the landlord); or

• any third party to whom it might be appropriate to make payment.

14.1 We will pay any award of DHP by the most appropriate means available in

each case. This could include payment:

• with Housing Benefit via BACs

• by cheque

• by crediting the applicant’s rent account;

• by offsetting the DHP against any other liability the applicant or partner has to

the Council to reduce indebtedness and reduce their expenditure.

14.2 The DHP will be paid along with the award of Housing Benefit. For example, if

the customer is paid Housing Benefit in arrears, any DHP will be paid at the

same frequency.

Notification

15.0 We will inform applicants of the outcome of the application within 14 days of

making a decision about their DHP claim. We will notify:

Those whose application is unsuccessful:

• the reasons why we have decided not to award a DHP

Those whose application is successful:

• the weekly amount of DHP awarded;

• the period of the award;

• how, when and to whom the award will be paid;

• a summary of the reasons for the award;

• any requirement to notify us of changes in circumstances that could affect the

DHP award.

All applicants:

• a reminder of the requirement to notify the council of changes in

circumstances;

• the dispute procedure

Overpayments

16.0 The Council will seek to recover any DHP if we decide that payment has been

made as a result of misrepresentation or failure to disclose a material fact and

also if an error has been made when the claim was determined.

16.1 Recovery of the overpaid DHP will be sought from the applicant and/or their

partner, regardless of how and to whom the DHP was paid. We will do this by

invoicing the claimant and/or partner.

16.2 DHPs cannot be recovered from on-going HB or UC. There is also no

provision for recovery of overpaid DHPs from other prescribed benefits.

Dispute Procedures

17.0 DHP's are not payments of Housing or Universal credit and are therefore not

subject to the statutory benefits appeals mechanism where appeals are

decided by the Tribunal Service which is an independent statutory body.

Disputes will therefore be decided by the Council.

17.1 Therefore we will operate the following policy for dealing with disputes about

DHP’s.

17.2 An applicant (or their appointee or agent) who would like an explanation of a

DHP decision, may request one in writing within one calendar month of

notification of the DHP award.

17.3 An applicant (or their appointee or agent) who disagrees with a DHP decision

may dispute the decision.

17.4 Any such dispute may be made in writing or electronically, but must be made

within one calendar month of the written decision about the DHP being issued

to the applicant. Officers will explain the DHP decision verbally to the

applicant by telephone by interview or in writing and seek to resolve

disagreement. Where this cannot be achieved Officers will formally review

the decision.

17.5 The Officers will reconsider the award of any DHP that has been disputed and

notify the applicant of the outcome of the review. A review will be suspended

if we need more information from a claimant until the information is received.

17.6 In the event that following an internal review of a decision, the Officers decide

that the original decision should not be revised, there is no further appeal. If

the customer has a complaint about the way that the Council has acted with

their application, they will be advised of the corporate complaints procedure,

including the Local Ombudsman. This will be set out in the decision letter.

Fraud

18.0 The Council is committed to the fight against fraud in all its forms. Any

applicant who tries to fraudulently claim a DHP by falsely declaring their

circumstances, providing a false statement or evidence in support of their

application, will have committed an offence under the Theft Act 1968.

18.1 Any cases where the Council suspects that this has occurred, will be

investigated and subject to the actions available within the Council’s Anti

Fraud policy. This may lead to our commencing criminal proceedings against

suspected fraudsters.

Assurance Arrangements

DHP Claim form

19.0 The Discretionary Housing Payments (Grants) Order 2001 requires LAs to

submit details of DHP expenditure to DWP Housing delivery Division. Three

forms must be submitted each year, an initial estimate by 1 April of the

preceding year, a mid-year estimate by 1 Sept and a final by 30 April of the

following year

19.1 The DHP claim and estimate forms contain a LA certificate which must be

signed by the Responsible Finance Officer (section 151 of the Local

Government Act 1972 or section 95 of the Local Government (Scotland) Act

1973. Due to the increase in DHP funding highlighted in the table below, and

following discussions with the National Audit Office, the Department has

strengthened its assurance arrangements by including additional

requirements in the local authority certificate.

19.2 In addition to providing details of DHP expenditure, the Responsible Finance

Officer must certify that all entries on the claim form are accurate and

expenditure has been made in accordance with this guidance and the

regulations governing DHPs.

Monitoring Arrangements

20.2 As a result of the increased funding DWP are required to monitor how DHPs

are being used to support customers affected by the welfare reforms. In

addition to the annual DHP claim form, LAs are asked to continue to provide

supplementary data on a voluntary basis in October & May.

20.3 Following a successful application for DHPs, LA’s are asked to record

whether the claimant has been affected by one of the following:

i) benefit cap

ii) removal of spare room subsidy in social rented sector

iii) LHA restrictions

iv) Combination of reforms

v) None of above

20.4 The following outcomes by value of payments are also recorded- To help

• secure and move to alternative accommodation (eg rent deposit)

• with short-term rental costs until claimant is able to secure & move to

alternative accommodation

• with short term rental costs while the claimant seeks employment

• with on-going rental costs for a disabled person/s in adapted accommodation

• with on- going rental costs for a foster carer

• with short-term rental costs for any other reason

Appendix A- Good Practice Guide

Section 1: Support for customers affected by the benefit cap

Background to the benefit cap

1.0 From April 2013, the total award of household benefit payments for working-

age claimants has been subject to cap. For the purposes of applying the

benefit cap we define a household as a claimant, their partner and any

children they are responsible for and who live with them.

1.1 The cap can be applied by LAs through HB payments. When a household’s

total benefit entitlement exceeds the cap the LA will reduce the level of HB by

the excess amount. A de minimus amount of £0.50 will be paid when the

reduction of the excess would otherwise remove all payments of HB.

1.2 Where UC is in payment the cap is applied through UC, starting with all new

claims for UC including those migrated from existing benefits.

1.3 Total entitlement to benefit payments has been capped at £500 per week for

couples and lone parent households. The level of entitlement for single adults

is capped at £350 per week.

1.4 For those claiming UC the cap will be applied for the assessment period,

which will be monthly. The direct monthly equivalent limits are £2167 for

couple and lone parent households and £1517 for single households.

Changes in 2016/17

From November 2016 total entitlement to benefit payments will be capped at

• £23,000 in London & £20,000 in rest of country for couples & lone

parents.

• £15,410 & £13,400 respectively for single childless households

Exemptions

1.5 There are some exemptions from the cap among benefit recipients. The

benefit cap is intended to increase work incentives, therefore we will exempt

households that are considered to be “in-work.” Claimants in receipt of HB will

be considered in-work and be exempt from the benefit cap if they are entitled

to Working Tax Credit.

1.6 Claimants on UC will be considered to be in-work if they earn more than the

prescribed earnings threshold.

1.7 We will also exempt households where someone is in receipt of:

• Attendance Allowance;

• Industrial Injuries Benefit (and equivalent payments made as part of a War

Disablement Pension or the Armed Forces Compensation Scheme/Armed

Forces Compensation Scheme);

• Employment and Support Allowance with a support component. For those

on UC this will be limited capability for work and work-related activity;

• Disability Living Allowance or its replacement Personal Independence

Payment;

• Where a person is not receiving Disability Living Allowance, Attendance

Allowance or a War Disablement Pension because they are in hospital or

a care home, the exceptions will continue to apply

• War widows and widowers will also be exempt.

1.8 There is a grace period of 39 weeks (9 months in UC) for those claimants

who have been in work for the previous 12 months and find that their

circumstances have changed because their job has ended. This will allow

people time to find alternative employment or consider other options to avoid

the impacts of the cap.

1.9 HB paid to households in specified accommodation is disregarded from the

benefit cap calculation. The disregard applies to benefit cap cases under HB

& UC. So although not exempt, by not including HB in the calculation the

majority of cases will not be affected

Support for those subject to the benefit cap

1.10 The Government is providing additional funding for DHPs to support

claimants affected by the benefit cap, who cannot to move immediately into

work or more affordable accommodation or to help manage families move

into more appropriate accommodation.

1.11 It is specifically aimed at a number of groups who are likely to be particularly

affected by the benefit cap. These include (but are not limited to):

• Those in supported, exempt or temporary accommodation;

• Individuals or families fleeing domestic violence;

• Those with kinship care responsibilites;

• Individuals or families who cannot move immediately for reasons of health,

education or child protection

• Individuals entitled to CA or to UC including the help for carers

• Households moving to, or having difficulty finding more appropriate

accommodation

• Those with dual liability for housing costs

• Women within 11weeks of the expected week of childbirth

• Households with a child aged 9 months or under.

1.12 There will be a number of ways that claimants affected by the cap may re-act

to having their HB reduced by the benefit cap. The intention is that the

majority will move into work and so become exempt from the cap. Some may

choose to move whilst others may consider other means by which they might

be able to meet any short fall such as trying to negotiate a reduction in their

rent or meeting the shortfall from other income or capital.

1.13 Those who are affected by the cap will have access to and receive support

from Jobcentre Plus and the Work Programme to help them find work. People

in receipt of working tax credit will be exempt from the cap.

1.14 DHPs can make an important contribution to managing the transition for

various customers whilst they make the necessary changes to adapt to the

application of the benefit cap. The allocation of this funding reflects the

varying impact of this measure on different LA areas.

1.15 The following examples show how DHPs can be used to assist those affected

by the benefit cap.

Example

Mr and Mrs Smith rent a 3 bedroom property at £340.00 per week. They have two

children and receive the following benefits:

Jobseekers Allowance: £114.85, Child Tax Credit: £116.83, Child benefit: £34.40

Housing Benefit: £340.00 Total welfare benefits: £606.08

The benefit cap for Mr and Mrs Smith is £500.00 per week; therefore, their award of

housing benefit is reduced to £233.92 per week (reduction of £106.08).

Mr Smith has been unemployed for one year and has found it difficult to find

employment in his usual vocation; he is currently attending his local Work

Programme provider for support to find work.

In addition, Mr & Mrs Smiths oldest child is 15 years old and in the process of

completing her GCSEs. Mr & Mrs Smith have found a cheaper property that would

take them below the benefit cap in another area but it would mean their oldest child

would have to move schools. They believe this would have a negative impact on

their childs education. You may decide to award a weekly DHP of up to £106.08 until

Mr Mrs Smith move into work or their eldest child completes the GCSEs.

Example

Ms Martin has 2 children and is receiving HB for temporary accommodation where

she has been living for 3 months waiting for a permanent move.

In addition to Job Seekers Allowance, Child Benefit & Child Tax credits, Ms Martin is

receiving higher than average HB as a result of the cost of rent for temporary

accommodation. So Cap applies.

Ms Martin is struggling to move into work as she does not have any qualifications or

work experience. She is participating on the Work Programme to develop her skills

and try to find work.

You may decide to award a DHP until permanent accommodation can be found for

Ms Martin or she is able to move into work so she no longer has the benefit cap

applied.

Example Mr Benn is Universal Credit for himself, his partner and four children. Mr

Benn is currently appealing the decision that he doesn’t have limited capability for

work and work-related activity. As no one in the household meets the criteria for an

exemption the benefit cap will be applied.

Mr Benn does not want to adapt his circumstances to avoid the benefit cap until he

is notified of the decision from his appeal. You may decide to award a DHP until Mr

Benn’s appeal is heard and decided.

Section 2: Support for customers affected by removal of the spare room

subsidy

Background

2.0 From April 2013 working-age claimants living in the social rented sector may

face a reduction to their eligible rent if they are under-occupying their

property. The level of under-occupation is determined by the LHA size criteria

(the Shared Accommodation Rate is not applicable, however).

2.1 The rates of reduction to the eligible rent for those affected by this measure

are:

• 14% where there is under-occupancy by 1 bedroom; and

• 25% where there is under-occupation by 2 or more bedrooms

2.2 We expect that most claimants affected by this measure will find ways of

making up the shortfall themselves, in order to remain in their existing home.

2.3 LAs are encouraged to continue engaging with affected claimants to identify

effective ways of mitigating the effects of any reduction in entitlement

Support for disabled people living in significantly adapted accommodation

2.4 Additional funds continue to support disabled people living in significantly

adapted accommodation. In specially adapted accommodation. it may be

more cost effective not to move. LAs should identify such groups and invite

an application for DHP.

Example

Mr and Mrs Thom rent a four bedroom house from a registered housing provider.

They have two children, a girl of 7 and a boy of 5. They receive Housing Benefit to

cover the full rent of £90 per week.

Under the new size limit rules they are considered to be under-occupying the house

by two bedrooms as the children would be expected to share a room because they

are both under ten years old. As they are under-occupying by two bedrooms a 25%

reduction of £22.50 would be applied to the eligible rent meaning they would now

receive Housing Benefit of £67.50 per week.

Mrs Thom is in a wheelchair and significant adaptations have been made to the

property to make it more accessible. If the family moved to a different property that

property would then need to be adapted at considerable expense. You may

therefore decide to award a DHP of £22.50 per week to enable the family to remain

in their current adapted house.

2.9 Significantly Adapted Accommodation: There are two questions for

consideration:

• What is our definition / interpretation of “adaptation”?

• What is our definition / interpretation of "significant"?

2.10 There is some case law to help us with the word "adapt". This is not in

connection with DHP but in relation to Housing Benefit being paid on two

homes where a tenant has been delayed in moving into their new home due

to the property being adapted to meet disablement needs. (It is still relevant

though and can be used.)

2.11 Basically the Commissioner concluded that “adapting” a building should be

interpreted as “altering the fabric or structure of the building in order to meet a

disablement need (including such matters as the provision of fixed handrails,

raised lavatories or widened doors)"

Therefore, so long as the fabric / structure of the building has been adapted

we are half way there. The next question we must ask ourselves is how

"significant" has the adaption been?

"Fixed handrails" and "raised lavatories" are not significant as these could be

temporary by nature and removed / added reasonably easily somewhere

else.

Widening door ways for the use of a wheel chair for example together with a

ramp is not so temporary. I would imagine other adaptations would have

occurred too for example the installation of a shower room. This would lend

itself to the property being termed as significantly adapted.

2.12 If adaptations have been made to enable a wheel chair to be used around the

house it is likely the customer is receiving Council Tax Disabled Relief and

this may prove as further evidence for awarding DHP.

2.13 As a refresher the current qualifying criteria to receive Council Tax Disabled

Relief is:

• There is an additional bathroom or kitchen required for the needs of the

disabled person, (I'm not sure this fully meets the significantly adapted criteria

unless the additional bathroom or kitchen has been adapted?) or

• There is a room, other than mentioned above, used mainly by and adapted

for the disabled person, or

• A wheelchair is used in the property by the disabled person

Where Disabled Relief has been granted a Visiting Officer has been to see the

customer for verification.

2.14 Where tenants have adapted their homes to meet disablement needs in most

cases they would have received a grant and proof of this grant together with a

list of the adaptations made will also provide useful evidence in any such

claim for DHP.

2.15 If we can agree that a property has been significantly adapted then how long

do we pay DHP for in these instances as in most cases the tenant’s condition

may not improve?

2.16 The cost to re house them, make good the adaptations before carrying out

adaptations on a new home is surely greater than awarding DHP indefinitely?

Generally the DHP will not be paid for more than 6 months and sometimes

less. That said customers can make a new application at the end of their DHP

award and in some instances we can consider paying for a longer period.

Other Circumstances in which to consider DHP awards:

2.17 Support for disabled children or non- deps who need an additional bedroom

for an overnight carer. Only claimants or their partners are exempt so DHP

may need to be considered in these circumstances.

2.18 Support for approved or prospective adoptive parents

Example

Ms Roberts rents a 3 bedroom flat from her LA. She already has one daughter of her

own aged 7. She is matched with her adoptive child, a 5 year old girl, and the child

moves into the third bedroom. Under size criteria rules, the family is considered to

be under occupying the home by one bedroom as the children are both under 10

years old and expected to share a room.

However, social workers have made it clear that this particular adopted child must

have own room due to early life experiences. DHP should be considered in order to

support the adoption process.

2.19 Support for approved or prospective foster carers. Size criteria rules only

allow foster carers to have one extra bedroom. DHP can assist if additional

rooms are required given that Fostering Services advise child 3+ should have

own room.

2.20 Support for disabled children. Changed legislation allows extra bedroom for a

severely disabled child eligible for middle or highest rates of DLA care. DHP

can be considered where middle/high rate DLA not in payment

20.21 In cases where a child is not entitled to DLA care (middle or higher) but

claimant advises child unable to share, a DHP could be considered.

Section 3: Support for customers affected by LHA restrictions

Background to the changes to LHA rates

3.0 Since April 2011, the calculation of LHA rates has been revised and these

changes are likely to result in an increase in demand for DHPs, particularly as

any protection measures come to an end. The changes are as follows:

• The five bedroom LHA has been removed so that the maximum rate is

for

a four bedroom property;

• Absolute caps for each property size have been introduced as follows:

£250 for a one bedroom property

£290 for a two bedroom property

£340 for a three bedroom property

£400 for a four bedroom property

• LHA rates are now set at the 30th percentile rather than the median.

3.1 Customers in receipt of HB on 31 March 2011 were not affected by these

changes straight away. The new rates will normally apply from the

anniversary of their claim but they could have up to a further nine months’

protection from a reduction in their LHA rate.

3.2 Although the period of transitional protection may have provided existing

customers with time to look for alternative accommodation, once their LHA

rate reduces, some customers may still require assistance beyond the period

of protection.

3.3 In addition to these changes, from April 2013, LHA rates will be uprated

annually in line with the Consumer Price Index inflation (CPI), instead of being

set every month in line with market rents (Retail Price Index – (RPI).

3.4 As part of the preparation for this measure, LHA rates will be frozen at the

April 2012 rates until the first uprating takes place in April 2013. The precise

impact of this measure depends on the choice of accommodation made by

LHA recipients and whether landlords decide to restrict their rent increases in

line with LHA rates, but it could mean some customers have a greater

shortfall between their LHA and their rent.

Support for those subject to LHA restrictions

3.5 The Government has provided an additional £40 million to the DHP budget for

2013/14, aimed at enabling local authorities to provide additional support to

claimants who have been impacted by the changes to LHA

Example

Harry has to move from his bed-sit in central London as his housing benefit no

longer meets his rent. His only income is from a part-time job with his net pay

amounting to £100 per week.

With the assistance of his local authority he finds a bed-sit in another borough within

the LHA rate with a rent of £101 per week. He now has bus fares of £20 per week

instead of being able to walk to work. This leaves him struggling to pay his rent and

meet his day- to-day living expenses.

He discusses his problems with the Citizen’s Advice Bureau and they suggest he

claims a DHP. One of the LA’s objectives is to use DHPs to help people maintain

their employment and it will consider disregarding fares to work in deciding on the

amount of a DHP.

The LA awards a DHP of £13 which is the difference between his HB award and

what the award would be if the fares to work were included in the disregard.

Actual

Hypothetical HB

Calc

DHP award

Eligible Rent

£101.00

Personal

Allowance

£67.50

Less net earnings

£95.00 (£5

disregard)

£75.00 (£5

disregard plus £20

bus fares)

Difference

£27.50

£7.50

Apply 65% taper

£17.78

£4.88

HB award

£83.22

£96.12

£13.00

Section 4: Considering the DHP strategy to take account of increased demand

4.0 Given the numbers of people affected by the changes, awarding DHPs to

meet all shortfalls is not going to be a viable option. You will need to consider

how best to target the funding within your priority groups, whilst remembering

that each case must be considered on its own individual merits.

4.1 Some groups you may want to assist to stay in their home are, for example:

• Families with children at a critical point in their education;

• Young people leaving local authority care;

• Foster carers, including those between placements:

foster children are not included in the HB assessment but neither is the

income from foster allowances. The Government greatly values the work

done by foster carers. Whilst some carers may be able to make up the

shortfall using some of their allowance, or by other means, you may want

to consider supporting foster carers who are deemed to be under-

occupying their accommodation because they have rooms required by

foster children, or being kept available for future placements. Local

authorities should bear in mind that foster carers should not be out of

pocket because of their foster caring role.

• People going through the approval process to become foster carers who

may need to show that they have a spare room to be approved. If a DHP

was paid on this basis it would be up to the claimant to inform the LA of

any change of circumstances if, for example, they were not subsequently

approved.

• Families with kinship care arrangements. Children who go into the care of

family and friends are often extremely vulnerable and will usually benefit

from the stability of remaining in a familiar area and continuing to attend

their local school;

• Families with a child temporarily in care but who is expected to return

home. What constitutes temporary will be at your discretion

• Families with a social services intervention, for example highly dependent

adults, children at risk or involvement in a family intervention project;

• People who have had to flee domestic violence or have moved because of

the threat of violence in another area;

• Where someone in the household is expecting a baby (including those

currently in shared accommodation or subject to an under-occupation

reduction);

• ex-homeless people being supported to settle in the community;

• people with health or medical problems who need access to local medical

services or support that might not be available elsewhere;

• people with disabilities who need, or have had, significant adaptations

made to their property, or where they are living in a property particularly

suited to their needs.

• where the claimant or someone in their household has a disability which

requires them to have a larger property than would usually be the case for

the size of their household due to, for example, a medical condition or

where a child has a particular disability that might mean they are unable to

share a bedroom;

• people with disabilities who receive informal care and support in their

current neighbourhood from family and friends which would not be

available in a new area. In this respect you may also consider families who

have a child with a disability who rely heavily on local support networks

• households with disabled children who require an overnight carer;

• the elderly frail who have lived in the area for a long time and would find it

difficult to establish support networks in a new area;

• people who need to live near their jobs because they work unsocial hours

or split shifts; or where moving home may mean living in an area where

public transport would be inadequate to enable them to sustain their

current job.

Appendix B: What DHPS cannot cover

1.0 These are the elements of a person’s rent, and shortfalls in benefit that

cannot be met by a DHP under the legislation.

1.1 Ineligible charges: service charges that are not eligible for HB cannot be

covered by a DHP. These are as specified in Schedule 1 to the Housing

Benefit Regulations 2006 and Schedule 1 to the Housing Benefit (Persons

who have attained the qualifying age for state pension credit) Regulations

2006. Nor can DHPs cover charges for water, sewerage, and environmental

services – as defined and calculated under the HB provisions.

1.2 Increases in rent due to outstanding rent arrears: Regulation 11(3) of the

Housing Benefit Regulations 2006 and Regulation 11(2) of the Housing

Benefit (Persons who have attained the qualifying age for state pension

credit) Regulations 2006 refer. This refers to those cases where a customer’s

rent is increased on account of outstanding arrears which are owed by the

customer in respect of their current or former property.

1.3 Sanctions and reductions in benefit: DHPs cannot meet these because to

do so would undermine the effectiveness of the sanctions or reduction in

benefit. These are:

• any reduction in Income Support (IS) or income-based Jobseeker’s

Allowance (JSA(IB)) due to a Reduced Benefit Direction (RBD) for

failure to comply with the Child Support Agency in arranging

maintenance. The RBD is a reduction in benefit of 40% of the personal

allowance and only applies to IS or JSA(IB)

• any reduction in benefit as a result of non-attendance at a work-

focused interview. This applies both where the person’s HB/CTB is

reduced and when any other benefit that the person is receiving, such

as IS is subject to a sanction

• any reduction or loss of benefit due to a JSA employment sanction.

JSA is not payable for the period of sanction if they have contributed

towards their unemployed status, for example, by leaving employment

voluntarily or failing to attend a prescribed training scheme. In such

cases, it may be possible for a reduced rate of JSA to be paid under

the JSA hardship provisions.

• any reduction in benefit due to a JSA sanction for 16/17 year olds – for

certain young people who receive JSA under a Severe Hardship

Direction. JSA is not payable for the period of the sanction if they have

contributed towards their unemployed status, for example, by leaving

unemployment voluntarily or failing to attend a prescribed training

scheme, or any restriction in benefit due to a breach of a community

service order

1.4 Benefit suspensions: HB can be suspended either because there is a

general doubt about entitlement or because a customer has failed to supply

information pertinent to their claim. In such cases, it would not be permissible

to pay DHPs instead. One of the intentions of the suspension provisions is to

act as a lever to ensure that the customer takes the necessary steps to

provide the authority with the necessary information/evidence - paying DHPs

could reduce the effectiveness of this lever.

1.5 Rent, when the person is getting council tax support but not HB or help

with housing costs in UC: in other words, when a person is only getting

local council tax support, you should not take into account any financial

assistance that they may require with their council tax, when considering the

award of a DHP.

1.6 Shortfalls caused by HB overpayment recovery: when recovery of an HB

overpayment is taking place, such shortfalls should not be considered for a DHP.