Discretionary Housing Payment Policy 2022-23

1.1 Primary Legislation: The Child Support, Pensions and Social Security Act 2000; Welfare Reform Act 2012

1.2 Regulations: Discretionary Financial Assistance Regulations 2001; Universal Credit Regulations 2013

2.1 This policy applies to all applications for Discretionary Housing Payments (DHP). The DHP scheme is funded through an annual Department for Work & Pensions (DWP) cash limited grant. DHPs provide claimants with further financial assistance, in addition to any welfare benefits, when a Local Authority (LA) considers that additional help with housing costs is required.

2.2  For a DHP to be considered the claimant must be:

• entitled to Housing Benefit or Universal Credit with housing costs
• have a rental liability
• require further assistance with housing costs

DHP awards can only be made for a period when housing benefit or the housing costs element of Universal Credit has been awarded and cannot duplicate any housing benefit or costs paid to the claimant but not used for the intended use.

2.3 Housing costs are not defined in the regulations and this gives the Council a broad discretion to interpret the term as they wish. In general, housing costs means rental liability. However, housing costs can be interpreted more widely to include:

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

2.4 The main features of the scheme are:

• the administration of the scheme is determined by the Revenues and Benefits Service, working in collaboration with other Stockton-on-Tees Borough Council services
• the scheme is of a discretionary nature; a claimant has no statutory right to payment
• the total amount an Authority can pay out in any financial year is cash limited by the Secretary of State
• DHPs are not payments of Housing Benefit or Universal Credit or Universal Credit with housing costs

3.1 Shortfalls that DHP can cover:

• restrictions between the actual rent and the eligible rent for Housing Benefit purposes or Universal Credit with housing costs such as Local Reference Rents (LRR), Single Room Rent (SRR) size criteria or when the Local Housing Allowance (LHA) does not meet the rent charged
• non-dependant deductions
• income tapers
• rent deposits and rent in advance: a DHP can be awarded for a rent deposit or rent in advance for a property that the claimant has yet to move into if they are already entitled to Housing Benefit or Universal Credit with housing costs for their present home
• rent shortfalls to prevent a household becoming homeless whilst the alternative options are explored

This list is not exhaustive.

3.2 In addition to the above DHP can be used to provide support to claimants affected by some of the key welfare reforms including:

• reductions in Housing Benefit or Universal Credit with housing costs where the Benefit Cap has been applied
• reductions in Housing Benefit or Universal Credit with housing costs for under-occupation in the social rented sector

3.3 DHP cannot be used for help with:

• ineligible service charges
• increases in rent due to arrears
• shortfalls in Council Tax Support
• certain sanctions and reductions in benefit
• overpayments of Housing Benefit or Universal Credit
• Mortgage Interest Payments
• housing costs that have already been met by past payment of housing benefits

4.1 The aim of the policy is to ensure that the funding is used in the most appropriate way to provide additional financial assistance to the most vulnerable customers, who without it are likely to experience financial hardship, increased levels of unmanageable debt, homelessness, and an inability to secure or retain the appropriate type of accommodation for their specific needs. The policy also aims to keep families together and support family access.

4.2 Each case will be treated strictly on its merits and all claimants will be treated equally and fairly when the scheme is administered.

4.3 The Council is committed to working with the local voluntary sector, social landlords and other interested parties to maximise entitlement to all available state benefits and other support that may be available and this will be reflected in the administration of the DHP scheme.

4.4 This policy is not intended to rigidly define the circumstances in which an award will be made. To do so would make the policy too inflexible and may prevent payments being made where there are exceptional or unusual circumstances. Payments are expected to be made to meet current needs rather than past debts.

5.1 Since its inception, DHP funding has been used primarily to make short term awards to ease transitions and to give claimants time to seek resolution of their difficulties.

5.2 Many people have difficulty paying their rent. Among these are:

• those whose benefit is restricted because their rent is considered too high
• those whose benefit is restricted because their home is considered too large under the government's size criteria
• those whose benefit is reduced by deductions for non-dependants who may not contribute adequately to cover those deductions
• those whose benefit is reduced by the taper for excess income
• those who for all sorts of reasons have other calls on their income (additional expenses or outstanding debts) which they prioritise ahead of rent
• those who have general difficulty managing the income they have, including those subject to the household benefit cap
• those who are returning to work after a long period of unemployment who have difficulty in managing finances during the transition from benefit to a stable in-work income when the continuing level of net earnings is known and any Universal Credit entitlement is secured

5.3 Any claimant who has a shortfall between the amount of Housing Benefit or Universal Credit awarded and the rent charged is able to make a claim for DHP. Given the number of people who are affected by Welfare Reforms, awarding DHP to meet all shortfalls will not be possible. Careful consideration will be made to determining how best to target the funding within priority groups, whilst ensuring that each case is considered on its own individual merits.

6.1 When considering applications for DHP it is usual to make a detailed assessment of the personal circumstances of the claimant and family including consideration of income, expenditure and the level of indebtedness. There is a "fast track " process for DHP for situations that require immediate attention or priority groups. Fast track applicants will be expected to provide supporting documentation at a later date as per usual DHP application.

Foster carers

Foster children are not included in the Housing Benefit or Universal Credit assessment but neither is the income from fostering allowances intended to help towards the costs of caring for the child. One additional bedroom can be awarded under the size criteria for foster parents who have been approved for fostering or have had a foster child or children placed within the last 12 months. However a number of foster parents have more than one room available for foster children and may require DHPs to cover the cost of the additional room. If DHPs were not made it is unlikely that social sector residents could afford to become, or remain foster carers. Where necessary and appropriate DHPs will be made to both local authority and private foster carers under "fast track" rules. Applications will also be considered from foster carers in private rented accommodation, but consideration will be given to the reasonableness of the rent charged. Similar rules apply in respect of prospective adoptive parents.

Care Leavers

A Care Leaver is defined as somebody under the age of 25, whom Stockton-on-Tees Borough Council looked after up to the point that they left care. The legal definition of a care leaver is someone who has been looked after for at least 13 weeks since the age of 14, and includes at least one day after the age of 16. Where necessary and appropriate a DHP will be made available under 'fast track' rule to care leavers up to 21 years old (or up to 25 years old if in education or training) where additional support is needed to increase the long term sustainability of their accommodation.

Other examples

• people who have had to flee domestic abuse or have moved because of the threat of violence in another area
• vulnerable residents who are being supported by Council services such as adults services, children's services, housing and homelessness solutions

A number of claimants will be affected by benefit reductions for a short period of time until a predictable change in circumstances occurs such as a birthday, when housing costs will become affordable.

For example:

• a child who is a member of the household reaches the age of 16 within the 12 months following the date of the DHP application and the number of bedrooms which would be allowed under the size criteria at that time would match the number of bedrooms in the property
• a child who is a member of the household reaches the age of 10 within the 12 months following the date of the DHP application and the number of bedrooms which would be allowed under the size criteria at that time would match the number of bedrooms in the property
• a member of the household is expecting a child and the number of bedrooms which would be allowed under the size criteria following the term of the pregnancy would match the number of bedrooms in the property
• in the social rented sector a DHP will be paid for up to one year where the claimant or partner will reach the qualifying age for state pension credit within the 12 months following the date of the DHP application and will therefore be exempt from the under occupation legislation
• in the private rented sector a DHP will be paid for up to one year, where the claimant reaches the age of 35 years within 12 months of the date of the DHP application and would then be eligible for the one bedroom LHA rate

A number of severely disabled people live in properties which have been significantly adapted to meet specific disablement needs will face unaffordable reductions in benefit entitlement under the under-occupation rules in the social rented sector. It would be unreasonable to expect the claimant to move to alternative accommodation when significant amounts of public funding have been paid to adapt a property specifically for their needs. The adaptations may need to be carried out again in the new property and further expenditure incurred to restore the old property to its original form.

DHP will be considered where:

• the property is occupied by a person in receipt of the middle or higher rate of DLA or the Daily Living Component of Personal Independence Payment, or an Armed Forces Independence Payment
• the property is significantly or structurally adapted in order to meet the disability needs of that person

Significantly adapted would include multiple higher value adaptations. High value adaptations would include a stairlift, walk in shower, wet room, a kitchen re-arrangement or enlargement, specially designed or modified units, modified gas or electric supply, ceiling hoists, widening doorways, provision of adapted room for someone with challenging behaviour, closomat toilet. Structural adaptations would include extensions or through floor lifts. Applications will also be considered from disabled people in adapted private rented accommodation, but consideration will be given to the reasonableness of the rent charged.

9.1 Awards of DHP will focus on enabling people to secure or retain and pay for appropriate and sustainable accommodation through temporary difficulties or in anomalous circumstances not addressed by the benefit system. This is in order to reduce the risk of homelessness and help support the stability of families and communities. DHP's should not seek to undermine the purpose and nature of the Housing Benefit or Universal Credit scheme, nor support irresponsible behaviour, nor can they assist in situations so common that a consistent approach to such payments would involve expenditure above the maximum permissible.

9.2 It is expected that payments would be made in unusual or extreme circumstances where additional help will have a significant effect in alleviating hardship, reducing the risk of homelessness or alleviating difficulties that may be experienced in the transition from long term benefit dependence into work, for example:

• circumstances unusual or exceptional among claimants in that tenure
• costs that are beyond their control and do not arise through the actions or failures of others
• housing choices which are forced on or required by the claimant because of urgency, care needs or significant health requirements
• extreme and temporary situations which make it difficult to move in the short term or where decisions had to be made in an emergency
• imminent loss of the home where meeting some or all of the current shortfall between the benefit and eligible rent will prevent the claimant from becoming homeless
• to mitigate or delay the most severe effects of the household benefit cap where families are co-operating with agencies and other solutions are not practical in the short term

9.3 Applications to prevent eviction due to arrears will in the first instance be referred to the Councils Homelessness Team to undertake a homelessness prevention assessment.

10.1 The key criteria for targeting DHP support are that the claim falls within one of the priority groups detailed in the table below:-

10.2 In addition the following criteria will also apply:

The claimant cannot afford to meet the shortfall between benefit and rent.

An assessment of income and outgoings will be carried out for all DHP applications, and assistance provided only where the claimant has insufficient income to meet all or part of the shortfall. Consideration will be given to any disability benefits clearly intended to be used for care and mobility costs and any special needs or health conditions that may impact on the claimant's financial requirements.

Applicants will be signposted or referred to agencies to assist, such as, with dealing with debt, money management, work preparation, smoking cessation. Examples include Money Advice & Pensions Service, Northumbria Water Discount Scheme, Stockton Employment Hub.

Failure to engage with services that will assist the applicant in managing their shortfall may result in a refusal.

If there is insufficient income solely because of debt, it is unlikely that additional support will be provided. 

And

The claimant is unable to take action to improve his or her situation or is taking all reasonable steps to do so.

In order to qualify for a DHP payment applicants will be expected to engage with support providers, other support that may be available and not commit themselves to further unaffordable debt.

And

It is unreasonable to expect the claimant or family to move.

This will take into account personal circumstances and may include factors such as:

• additional bedrooms are required over and above the size criteria requirements
• local support networks
• critical points in children's education
• short term support requirement, until circumstances change

Or

• the DHP application would assist the claimant to move to more suitable accommodation

These will usually be lump sum applications to assist with a bond or rent in advance, for example, to facilitate a move. 

10.3 The Revenues & Benefits Service will consider making a DHP to all claimants who meet the qualifying criteria set out in this policy. All applications will be treated on their individual merits.

11.1 All DHP applications must be made online. Support to make a claim is available in the Customer Service Centres.

11.2 The Council may request any reasonable evidence in support of an application for a DHP. The claimant will be asked to provide the evidence within 7 working days of such a request, although this will be extended in appropriate circumstances. Sufficient evidence will need to be obtained to enable the decision maker to compare income against expenses to identify where there is a shortfall.

11.3 The Council reserves the right to verify any information or evidence provided by the claimant in appropriate circumstances.

12.1 The start date of an award will normally be:

i. the Monday after the written claim form for a DHP is received or initial request made

Or

ii. the date on which entitlement to Housing Benefit or Universal Credit commenced whichever is the most appropriate

13.1 Unlike Housing Benefit or Universal Credit, there are no rules on backdating, but the Council will act consistently. Any reasonable request for backdating an award of a DHP will be considered but such consideration will usually be limited to the current financial year. Backdating cannot cover ineligible service charges.

14.1 In deciding whether to award a DHP the following will be taken into account:

• any steps taken by the claimant to reduce expenditure, for example, by trying to negotiate a reduction in gross rent
• expenditure is reasonable in comparison to income
• the impact of Central Government's Welfare Reforms
• compliance with reasonable requests to engage with others including your landlord to improve circumstances
• the financial and medical circumstances of the claimant and all members of the claimant's household
• any savings or capital available to the claimant and all the members of  the claimant's household
• the level of debt owed by the claimant and all of the claimant's household
• any exceptional circumstances of the claimant and all of the claimant's household
• the amount available in the DHP  fund at the time of the application
• the possible impact of not making an award, for example, pressure on provision of accommodation for the homeless
• any other special circumstances

14.2 When awarding a DHP to assist with securing a new tenancy, the following factors will be considered:

• the authority will include information about the legal obligations for landlords 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
• establishing if the customer is due to have a deposit in respect of their exiting tenancy returned to them
• making payment to the landlord rather than the customer

14.3 On receipt of all required information a decision will be made within 10 working days.

15.1 An award of a Discretionary Housing Payment will be revised where the claimant's circumstances have materially changed. It is the responsibility of the claimant to report any change of circumstances that may affect their award of DHP. Overpayments of DHP for not reporting a change of circumstances may be recovered.

16.1 The Council will decide the most appropriate person to pay based upon the circumstances of each case. This could include paying in no particular order:

• the claimant
• their partner
• an appointee
• their landlord (or an agent of the landlord)
• any third party to whom it might be most appropriate to make payment

16.2 The Council will pay an award of DHP by the most appropriate means available in each case such as:

• by electronic transfer - BACS for example

16.3 Payment frequency: 

• normally 4 weekly in arrears
• there may be situations where other arrangements are put in place

17.1 Once a decision is made, the claimant will be notified in writing. The notification will be sent by email or post.

17.2 Where the application is unsuccessful, the notification will include:

• the reason for the decision
• the right to ask for a review
• how to ask for a review
• the agency you have been referred or signposted to if appropriate
• there is no right of appeal

17.3 Where the application is successful, the notification will include:

• the weekly amount of the award
• the period of the award
• whether it will be paid in arrears or in advance
• the payment method, date of payment and the payee
• the need to report changes in circumstances
• the agency the claimant has been referred or signposted to if appropriate

18.1 DHP are not payments of Housing Benefit or Universal Credit Housing Costs and are not subject to any statutory appeals mechanism. Stockton-on-Tees Borough Council has an appropriate review process.

18.2 Any request for a review will be subject to the following policy:

• the claimant (or the claimant's appointee or agent) who disagrees with a decision about a DHP may dispute the decision
• disputes will be considered where they are received by the Revenues and Benefits Service in writing within one calendar month of the written decision being issued to the claimant
• disputes will be considered by the Review Officer and the outcome notified in writing
• where it is considered more appropriate the customer will be offered an explanation by telephone or interview in order to resolve the matter, if no resolution is found, reconsideration by the Review Officer will take place

19.1 Where a request for payments has been refused, it is not expected that repeat requests will be considered unless the customer can demonstrate that their situation has worsened significantly or a substantial period of time has elapsed.

20.1 The Revenues and Benefits Service will seek to recover any DHP found to be overpaid. The method of recovery will generally be by invoice. Generally any overpayments caused by official error will be treated as not recoverable. Overpayments will be notified in writing and have a right of review.

21.1 The Council recognises the importance of publicising DHP arrangements especially in the current environment.

Steps taken will include:

• offering advice on DHP where relevant when customers contact benefits staff to query entitlement
• identify and assist affected customers and work with partners to raise awareness and encourage take up
• having up to date information on the Council's website and service directories
• work actively with relevant partners to ensure that alternative advice and action is considered as necessary, for example, referral to Housing Options, signpost for debt or benefit advice, SWAN network and Stockton Information Directory
• proactive consideration of potential entitlement to DHP

22.1 The Benefits Service is committed to prevention and detection of fraud. Where false statements or false evidence is used to obtain payment by way of the DHP scheme then an offence may have been committed. Where fraud is suspected, the matter will be investigated appropriately and this may lead to criminal proceedings being instigated. The Benefits Service has a duty to protect public funds we handle, and so may use information given to prevent and detect fraud and may give some information to other organisations where the law allows.

23.1 Careful scrutiny and financial management of the DHP Fund will ensure that funds are available throughout the year to support DHP claimants where appropriate.