Understanding Discretionary Housing Payments (DHP) in the UK

Discretionary Housing Payments (DHP) are a vital form of financial support provided by local councils in the UK to help individuals who are struggling to cover their housing costs. 

This scheme is designed to assist people who are facing a shortfall in their rent, whether due to changes in benefits or personal circumstances. 

Unlike regular housing benefits, DHPs are not an automatic entitlement, but can be claimed under specific conditions. 

For those in financial hardship, understanding how DHPs work, who qualifies, and how to apply can make all the difference in securing housing stability.

This article will explore what Discretionary Housing Payments are, who is eligible, and how you can apply for support through various channels. 

We’ll also highlight important resources, including government guidance and external links, to ensure that readers have a comprehensive understanding of this important financial assistance.

What are Discretionary Housing Payments (DHP)?

Discretionary Housing Payments (DHP) are financial grants provided by local councils to help individuals meet the shortfall between their rent and the housing benefit or Universal Credit they receive.

These payments are not guaranteed and are only given at the discretion of the local council. 

Councils have a set amount of funding each year and can decide who gets the support based on individual needs.

The purpose of DHPs is to help those who are struggling to cover their housing costs due to circumstances such as a reduction in benefits, rent increases, or personal financial difficulties. 

These payments are typically short-term and designed to act as a temporary solution while individuals work toward more permanent financial stability.

Individuals seeking DHP assistance must be able to demonstrate why they need help and how it would alleviate their financial hardship.

Unlike regular housing benefits, the application process for DHP is often more involved and may require supporting documentation to substantiate the need for financial aid.

Who is eligible for Discretionary Housing Payments?

Eligibility for DHP is generally determined by the local council, and each authority may have slightly different criteria. 

However, to qualify, applicants must already be receiving either housing benefit or Universal Credit that includes a housing element. 

In addition, applicants must demonstrate that they are in financial hardship and unable to meet the shortfall in their rent with their current benefits.

The reasons for applying can vary, but common scenarios include:

• A significant rent increase or under-occupation penalty (such as the bedroom tax)
• A reduction in housing benefit or Universal Credit payments
• Unforeseen financial difficulties such as illness or unemployment
• Delays in receiving benefits or other income
• Temporary difficulty, for example, due to family crisis or loss of income

Although eligibility is determined by local authorities, some councils may prioritize certain groups, such as families with children, individuals with disabilities, or those facing homelessness.

How Discretionary Housing Payments help with housing costs

Discretionary Housing Payments are designed to help with a range of housing-related costs. This includes helping with rent shortfalls, covering arrears, and, in some cases, paying for things like removal costs or deposits for a new home.

The amount of assistance you can receive depends on the severity of your situation, the funding available within the local council, and whether you can prove a need for support.

The payments can either be one-off grants or ongoing support, depending on your circumstances.

For example, if you have a temporary reduction in your housing benefit, the council might provide DHP assistance to cover the difference until your benefits are adjusted. 

Similarly, if you are at risk of homelessness due to arrears or benefit changes, DHP can provide essential financial relief to help you maintain your tenancy.

In some cases, DHP can also assist in covering rent costs while you wait for a permanent solution, such as moving to more affordable accommodation or securing a better financial arrangement.

How to apply for Discretionary Housing Payments

Applying for DHP is relatively straightforward, though the process may vary slightly between different local councils.

To apply for a DHP, you must first check if your local council offers the payment and what their application procedure involves.

Many councils have an online application form, while others may require a paper application or an in-person visit.

The steps to applying generally include:

1. Contacting Your Local Council: Visit your council’s website or contact their housing department to inquire about their DHP scheme. Many councils provide an online application form, but if not, you can typically apply by phone or mail.
2. Completing the Application: The application will ask for personal details, your financial situation, your rent amount, and the reasons why you need a DHP. You may be asked to provide evidence of your housing benefit or Universal Credit payments, details of your rent agreement, and any other supporting documents that show why you are facing a housing crisis.
3. Providing Supporting Evidence: Councils require applicants to provide supporting documentation, which can include recent bank statements, evidence of rent arrears, proof of job loss, or any other documentation that shows your financial hardship. This helps the council assess your need for support accurately.
4. Awaiting a Decision: After submitting your application, the council will assess your case and decide whether to approve or deny the DHP. This process may take a few weeks, so it is crucial to apply early and not wait until you’re in immediate financial trouble.
5. Receiving the Payment: If your application is approved, the DHP will either be paid directly to your landlord or to you, depending on the council’s policies. The payment amount and duration will vary, and the council may offer you advice on how to manage your finances going forward.

For more detailed information on how to apply for Discretionary Housing Payments, refer to Gov.uk’s official page.

Key considerations when applying for Discretionary Housing Payments

While applying for a DHP is an essential step in securing financial support, there are several factors to keep in mind. These factors can impact the success of your application or the amount of assistance you receive.

1. The Availability of Funds: Each council is allocated a specific budget for DHPs each year. Once that budget is exhausted, councils may not be able to approve further claims. It is important to apply early in the financial year or when the need arises, as some councils prioritize certain groups or situations.
2. Temporary Relief: DHP is typically designed as a short-term solution, not a long-term one. Homeowners and tenants should not rely on these payments indefinitely. If you are granted DHP, it is important to plan for the future and seek more permanent financial solutions, such as finding affordable housing or applying for other forms of assistance.
3. Local Council Policies: Different councils may have slightly different policies regarding who is eligible and how much support they can offer. Some councils might be more flexible than others in terms of what they consider a valid reason for applying for DHP. Researching your local council’s specific criteria will help you submit a stronger application.

What if my application for Discretionary Housing Payments is denied?

If your application for DHP is denied, you still have options. First, contact the local council to find out why your application was unsuccessful.

Councils may be able to reconsider your case if you provide additional evidence or clarify any misunderstandings.

You may also consider appealing the decision if you believe the council did not adequately assess your case. 

Appeal processes vary by council, so you should check with your local authority for details. 

Additionally, if your situation remains urgent, you may be able to apply for other forms of financial assistance, such as Universal Credit hardship payments or other emergency support schemes.

Key resources and support services for Discretionary Housing Payments

There are several useful resources available to guide individuals through the process of applying for DHPs and provide additional support:

• Shelter: Discretionary Housing Payments Guide – Provides detailed advice on DHPs, eligibility, and how to apply.
• Gov.uk: Claiming Discretionary Housing Payments – Official government guidance on claiming DHPs, including eligibility criteria and the application process.
• Turn2us: How to Claim a Discretionary Housing Payment – Offers practical advice and resources for those applying for DHPs, including a step-by-step guide.

FAQ section

• What are Discretionary Housing Payments (DHP)?

Discretionary Housing Payments are additional financial support provided by local councils to help individuals with housing costs that are not fully covered by housing benefits or Universal Credit.

• Who is eligible to receive DHP?

Eligibility typically requires you to be already receiving housing benefit or Universal Credit. Local councils will assess your specific circumstances to determine if you qualify.

• How can I apply for DHP?

Applications can be made through your local council, either online or via paper forms. You will need to provide supporting documentation and explain why you need financial assistance.

• How much support can I get through DHP?

The amount you can receive depends on your circumstances and the available budget in your local council. DHPs are often temporary and designed to provide short-term relief.

• What happens if my DHP application is denied?

If your application is denied, you can appeal the decision or provide additional evidence to your local council. Other support options may also be available.

Discretionary Housing Payments are an essential safety net for many individuals facing financial hardship in the UK.

While they offer short-term relief for those struggling with housing costs, it’s crucial to understand the application process, eligibility, and the support available.

By applying early and ensuring that you provide the necessary evidence, you increase your chances of receiving the support you need to stay in your home.