Harlow Discretionary Housing Payments (DHP) Policy
The regulations covering DHP’s are the Discretionary Financial Assistance
Regulations 2001. The regulations are supplemented with a DWP DHP Guidance
manual which have informed this policy and will support it
DHP’s provide customers with further financial assistance in addition to any welfare
benefits, when a local authority (LA) considers that help with housing costs is
required. The Department of Work & Pensions contribute an amount of DHP to each
LA, which can then be topped up by the LA.
Housing costs are not defined in the regulations, but in general housing costs means
rental liability. However, housing costs can be interpreted more widely to include:
Rent in advance
Deposits
Other lump sum costs associated with a housing need such as removal costs
Following the abolition of council tax benefit from 1
st
April 2013, DHP’s can no longer
be made towards council tax liability.
Further Financial assistance is not defined in law. The level of award may cover all or
part of a shortfall in rent or assist with the cost of taking up a tenancy.
Purpose of the DHP award
The objective of an award of DHP is to:
Support tenancy sustainment and homelessness prevention
Alleviate poverty
Encourage and sustain people in employment
Assisting people who are long term unemployed to return to work
Safeguard residents in their home
Assist those who are helping themselves
Support domestic violence victims who are trying to move to a place of safety
Support the vulnerable or the elderly in the community
Support young people in the transition to adult life
Keep families together
Help claimants through personal crises and difficult events
Provide tenants with time to re-assess their situation and find a long term
solution.
Provide tenants with time to obtain professional money advice.
Where possible to provide some transitional protection so that claimants are
not substantially worse off due to ongoing Welfare Reform.
Promote good educational outcomes for children and young people
DHP and The Benefit Cap
From April 2013, the total award for household benefit payments for working age
claimants will be capped. The cap will be £500 per week for couples and lone
parents, and £350 per week for single people. The benefit cap is intended to increase
work incentives. Those in receipt of housing benefit (HB) will be considered to be in
work and exempt from the benefit cap if they are entitled to working tax credit. There
are other exemptions for those in receipt of certain other welfare benefits.
The DHP funding is intended to provide short term temporary relief to families who
may face a variety of challenges while preparing for work, or to move to more
appropriate accommodation if unable to do so.
DHP is specifically aimed at a number of groups who are likely to be particularly
affected, including:
Those in supported, exempt or temporary accommodation;
Individuals or families fleeing domestic violence
Those with kinship care responsibilities
Individuals or families who cannot move / start work immediately for reasons
of health, education or child protection
Households moving to more appropriate accommodation
DHP and Under Occupancy / Size Criteria
From April 2013 working age claimants in the social rented sector may face a
reduction in their eligible rent for HB if they are under-occupying their property. The
level of under-occupation is determined by the Local Housing Allowance (LHA) size
criteria, (the shared accommodation rate does not apply in the social rented sector).
The reduction in eligible rent will be
14% where there is under-occupation by 1 bedroom, and
25% where there is under-occupation by 2 bedrooms or more
DHP is intended for those affected by this measure who are unlikely to be able to
meet the shortfall and for whom moving to a smaller property may be inappropriate. It
is aimed specifically at two groups –
Disabled people living in significantly adapted accommodation – including any
adaptations made for disabled children, and
Foster carers, with two or more placements, whose HB is reduced because of
a bedroom being used by, or kept free for, foster children. (NB the rules for
under-occupancy in the social & private sector now allow for one additional
bedroom for a foster child or children living with an approved foster carer.)
For claimants living in specifically adapted accommodation, it will sometimes be more
cost-effective to enable tenants to live in their current accommodation rather than
moving them to smaller accommodation which then needs to be adapted.
Following a court of appeal judgement those whose children who are said to be
unable to share a bedroom because of severe disabilities will be entitled to an extra
bedroom. In these circumstances DHP may not be necessary and further information
will be requested.
The DHP funding is intended to provide short term temporary relief to families who
may face a variety of challenges which prevent them from being able to move
immediately or to help families move into more appropriate accommodation.
DHP and LHA reforms
Since April 2011 the calculation of LHA rates has been revised, and those in receipt
of HB at 31
st
March 2011 were afforded transitional protection. As the protection ends
some claimants may still require assistance beyond the period of protection. In
addition to the changes, LHA rates were frozen at April 2012 rates, and will be
uprated annually in line with the Consumer Price Index (CPI) with effect from April
2013.
What types of shortfalls can DHP’s cover?
Rent restriction cases. This is to allow claimants time to find cheaper
accommodation and prevent homelessness. The Council must still be satisfied
that the individual needs financial assistance. In these instances, help will
normally be awarded for a reasonable period of time to allow the individual to
find alternative accommodation, negotiate a lower rent with their landlord or
budget to meet the shortfall. After that time the claimant will normally have to
meet the cost of the shortfall in their rent themselves. If they have not found
anywhere else to live the Council may extend the award of DHP based on
their circumstances, evidence of efforts to move, available budget and
information from key stakeholders. Claimants will be notified in advance of this
happening.
NOTE claimants that come under the LHA scheme have the ability to
determine the LHA rate applicable for their needs prior to accepting a tenancy,
and should be aware of its affordability.
Shortfall in rent due to a non dependant deduction being taken.
Shortfall in rent due to income tapers that are set by central government.
Claimant / claimant’s dependants receiving medical care or expenses incurred
because of a medical condition. We will consider the claimant’s
circumstances and extra cost he/she has to pay because of the condition.
The onus is on the claimant to provide evidence from health professionals,
social workers and any other professional bodies; The Council will not seek it.
Joint custody/access/restricted access for visiting children.
Claimants affected by the social sector size criteria and who are living in a
substantially adapted property which has been adjusted to meet the needs of
their / their children’s’ disability.
Claimants affected by the social sector size criteria but who are foster carers
with two or more placements and are fostering or are keeping more than one
room spare between placements.
Rent Deposits/Moving Costs for claimants that will be financially better off
moving to a more affordable property. (Please see Rent Deposit/Moving costs
guide below)
Awards can be made for starting work or changing job and there is an
increase in essential work related expenditure. Awards can also be made if
the claimant has had to move and as a result now incurs greater work
expenses.
Short term shortfalls due to the shared room restriction being applied to those
under the age of 35.
To alleviate accommodation size restrictions when the claimant or their
partner is 6 or more months pregnant and a new child would mean that the
revised HB award would reasonably meet the contracted rent.
Rent shortfall to prevent a household becoming homeless whilst the housing
authority explores alternative options.
Reductions in HB or UC as a result of local housing allowance restrictions
Shared room rent restrictions for single claimants under 35 who’s 13 week
protection has expired
DHP and Rent Deposits/ Moving Costs/ Two homes
Claims can be made for rent deposits or rent in advance if you need to move home.
In order to qualify for a DHP for rent deposits and/or moving costs (excluding rent in
advance) you need to prove that moving to another address will result in a more
affordable level of rent or it will be beneficial to the household in line with the
objectives of the award of DHP.
DHP can be awarded on two homes when someone is treated as temporarily absent
from their main home, for example because of domestic violence. If the claimant is
treated as liable for rent on both properties, and in both cases there is a shortfall,
they could have DHP in respect of both properties, subject to the weekly limit on
each property.
In some cases we reserve the right to pay the rent deposit direct to the landlord. In
these cases evidence of tenancy take-up will be sought as well as agreement with
the landlord for accepting the rent deposit. It should be noted that consideration will
be given to the HB rules regarding payment on two homes before DHP is considered.
What DHPs cannot cover
DHPs cannot be paid in the following circumstances:
To cover service charges, hot water/heating charges, water rates or other non-
housing costs that may be included in the rent as set out in the tenancy
agreement.
Increases to cover rent arrears, which are not eligible for HB
Awards will not be made where hardship has been created by the acceptance
of an Administrative Penalty or the recovery by deduction of an overpayment
in cases of proven fraud as it negates the punishment.
Reduction in any benefit as a result of Jobseeker’s Allowance sanctions, Child
Support Agency sanctions or sanctions following certain benefit related
offences.
Who can claim?
Claimants can be considered for DHP if:
they are already receiving HB, or
Universal Credit (UC), and
they have a rental liability, and
they need further financial assistance with their housing costs, and
the HB award is less than the rent liability, (where the award is made to fund a
shortfall in rent)
Claimants will not be considered for DHP if:
They get the same amount of HB as the actual rent used when calculating the
award
They have received adequate notice of a change in legalisation which would
entitle them to a lower entitlement to HB UNLESS the claimant can prove that
they have attempted to change their circumstances or can prove that they
have personal circumstances that have hindered their ability to handle their
shortfall.
Making A Claim
All claimants should complete the same Harlow Council application form to ensure
consistency. Only the information contained within the form will be considered and
therefore it is essential that applications are completed fully and supporting evidence
supplied. Once the form is received we may contact the claimant for further
information.
Application forms can be obtained from www.harlow.gov.uk/benefits
or from
Contact Harlow
Civic Centre
Harlow
Essex CM20 1WG
Email: [email protected]
Tel: 01279 446655
For more detailed information regarding DHP, contact the Revenues & Benefits
Department:
Email: [email protected]
Tel: 01279 446633
Where the claim is made due to financial hardship, current details and proof of all
outstanding debts and essential expenditure must be supplied with the DHP claim
form. If a new award is applied for, fresh details must be supplied. A new award is
not an extension of a previous award made and will therefore be considered afresh;
progress of debt repayment will however be reviewed and if the debt is increasing
DHP support may be withdrawn.
If the rent has been restricted as a privately rented property is too expensive or
overly large, once an initial award of DHP is made, proof of attempts to renegotiate or
move must be supplied with any further requests at the same property.
DHP decision
The decision will be made by a panel of 3 staff, including one senior officer.
NOTE: the members of staff cannot have a vested interest (related or by service
provision).
There are several possible outcomes of a DHP application:
DHP is refused
DHP is awarded in full
DHP is awarded in part i.e. less DHP paid than requested or paid for a shorter
period
Further information is required and will be requested from the claimant /
claimant’s representative.
Notification details
Harlow Council will notify the claimant of the decision. If awarded, the notification will
specify:
Period of the DHP award
Weekly amount of DHP
The right of the claimant to ask for a review of the award and the time and
manner of doing so
The right of the LA to amend, suspend or cancel a DHP when deemed
necessary or appropriate.
Advance claims
Claims can be made up to 1 calendar month in advance of the anticipated award
date. If the DHP budget has expired the claimants request may be refused and they
will be advised to reapply one month before the commencement of the next budget.
Start dates
The start date of the DHP payment will normally be the Monday following the date
the written request was received. If a claim is received at the same time as an HB
claim the start date of the DHP can be matched to the start of the HB.
Backdating
A DHP payment can be backdated if the claimant can prove continuous good cause
for the delay in making the DHP claim e.g. if they were in hospital etc. Payment can
be made from an earlier date if it is considered reasonable given the circumstances
of the case i.e. if benefit is backdated then the DHP award may be awarded from the
earlier date.
Length of award
Awards can be made to:
the end of the financial year
tie in with an expected change in circumstances, e.g. a baby’s expected due
date.
a date considered reasonable given the circumstances of the case.
the date of the next rent review or referral.
the end date of the benefit entitlement.
When considering a DHP claim it should be taken into account that the DHP scheme
should in most cases be seen as a short-term award. Claimants must be made
aware that they must seek advice with regard to their housing needs and ways to
manage financially in the long term. DHP cannot be paid indefinitely.
Payments
DHPs can be paid:
To the claimant
To the claimant’s landlord
DHP should normally be paid to the person who receives the benefit payments. For
example, if the HB is paid to the claimant, then the DHP will be paid to the claimant
as well. However, where it is considered that it is not reasonable to pay the claimant
directly, payment can be made to another payee as long as that person is also a
‘person affected’ by the benefit decision. For example, if HB is normally paid to the
claimant, payment can be made to the landlord if it is considered reasonable to do so
(both the landlord and claimant are a ‘person affected’ by the HB decision).
DHP for council tenants will be paid along with their HB.
DHP payments should mirror the payment frequency cycle used to pay claimants HB.
Change in circumstance
Claimants must report, in writing, any change in circumstance that might affect the
amount of DHP they get. Examples of these changes include:
If they change address (or room if claimant occupies a room only)
If they leave their home temporarily
If their income changes
If the household make up changes
Overpayments
The Council may seek recovery of an overpaid DHP in certain circumstances such
as:
Misrepresentation or failure to disclose a material fact, fraudulently or
otherwise
An error made when the claim was determined
Failure to report a change in circumstances
Reviews
There is no formal appeals process against a DHP decision in the event of disputes.
In the case of dispute, and if requested by the claimant / their representative, the
original decision will be reviewed by a senior member of staff in the Revenues &
Benefits department who was not party to the original decision.
Once the review has been completed, the officer will write to the claimant informing
them of the decision within 10 days. The claimant has no further right of appeal
against this decision. However, claimants may still seek a Judicial Review of a Local
Authority’s decision.
Appendix A
Guidelines for awarding a DHP
Each case that meets the overall scheme objectives will be considered on its merits.
The following guidelines should be used to assess each case:
Is the claimant in receipt of all welfare benefits that are available to them?
Are there any pre-existing HB protections that could apply instead of an award
of a DHP?
Are there any other fund/funding schemes available via Benevolent funds or
charitable organisations that would be appropriate to use instead of a DHP?
Has the customer been adversely affected by the April 2013 welfare benefit
changes? If so are they considering the options available to them?
Does the claimant have the opportunity to increase their income?
Is the customer seeking / or has the customer accepted assistance from the
Council or a third party to manage finances and accepted the ceasing of non
essential expenditure?
Are there any social or health problems currently being faced by the claimant
and/or their family? Do they prevent claimant moving house? Do they affect
the type of housing available to the claimant? Do they cause the claimant
extra financial costs?
Are there young children of an educational age living in the property? The
award of the DHP should be made to tie in with the academic school year to
ensure that children are not displaced from their school environment wherever
possible.
Does an individual or child within the family have particular problems e.g.
special needs which are likely to cause the family to have higher costs e.g.
travelling to hospital appointments or special dietary requirements?
Is there a pregnancy within the family? If so consider giving them time to move
by awarding DHP up to 3 months either side of the birth or longer if the case
warrants it. Consider what has brought about the shortfall, is it due to rent
being restricted because the property is larger than the household needs? Will
this be resolved when the baby is born?
Is there any other member of the household who could provide financial
assistance?
Does the claimant have any disregarded income? If the claimant is working, is
it reasonable to expect them to use their disregarded income towards their
shortfall (not other forms of disregarded income e.g. Disability Living
Allowance)
Is there danger of eviction and homelessness? Liaise with the Housing
Options team to ensure joint working.
Are there any savings or capital held by the household that could be used to
assist?
Are there any other priority debts that the claimant has incurred?
What is likely to happen to the family if a DHP is not awarded?
Consider that the regulations concerning payment on 2 Homes could help to
cover a period of notice needed if the claimant must move in order to avoid a
need to extend the DHP award. (Ensure that the claimant has moved into the
new property for that rule to be applied.)
Is there evidence that the customer is finding it difficult to find a new property
to move to? Liaise with the Housing Options team to ensure joint working.
Is it clear that the claimant cannot afford to live in the property or due to the
upcoming changes with size criteria in social sector/benefit cap will not be able
to afford to live in the property? Are smaller or less expensive properties
available?
Have they considered moving to a more affordable property? If so will they
benefit from having moving costs/rent deposit paid for the new property?
The Council will not normally make any allowance for the following:
Any loss resulting from the claimant’s failure or delay in claiming any income
to which they are entitled
Any debt arising from an overpayment of HB classified as fraud
Any debt, which, in the opinion of the Council arises from the financial
imprudence of the claimant.
