Discretionary Housing Payments

I live in London and the LHA for my area is to be drastically reduced.

When I started renting this flat my LA subsidised my rent with a discretionary housing payment

Does anyone know if these payments are still available to make up the shortfall of my actual rent and the LHA?

I cannot work

Coolie
«1345

Comments

  • viktory
    viktory Posts: 7,635 Forumite
    They are a temporary, short term measure so if your LA is to be reduced and you cannot pay the rent you'll have to move.
  • Kimitatsu
    Kimitatsu Posts: 3,889 Forumite
    1,000 Posts Combo Breaker
    The discretionary payment is governed by the fair rents officer who will decide if your property is a reasonable amount for the area in which you live and your accomodation needs.

    There are more details here as to what they can be paid for:

    http://england.shelter.org.uk/get_advice/paying_for_a_home/housing_benefit_and_local_housing_allowance/discretionary_housing_payments

    Bear in mind that many of these government cuts are not due to come into force for at least 6 months and there will be a phasing in period otherwise councils will have a huge tidal flow of people needing affordable housing!
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  • mitchaa
    mitchaa Posts: 4,487 Forumite
    The discretionary housing payment budget is being increased by 400%! :)

    Is it?

    Have you just made that up or can you link us to something to substantiate?

    Anyway, surely discretionary is perhaps a month or 2's help?
  • Kimitatsu
    Kimitatsu Posts: 3,889 Forumite
    1,000 Posts Combo Breaker
    mitchaa wrote: »
    Is it?

    Have you just made that up or can you link us to something to substantiate?

    Anyway, surely discretionary is perhaps a month or 2's help?

    Nope not necessarily, I have had a case where someone has been on DHP for years. If the decision is made to award DHP then it stays for the lifetime of that tenancy, it is only revoked if the award for HB is taken away or the tenant moves to a new tenancy. To be fair though it does vary from council to council.

    THis back in June though:
    One area is to see payouts increased - the discretionary housing payments' budget for hardship cases will be increased by £40m.

    As has been said though these reforms will not start to take place until April 2011.
    Free/impartial debt advice: Consumer Credit Counselling Service (CCCS) | National Debtline | Find your local CAB
  • lacoole
    lacoole Posts: 26 Forumite
    Tenth Anniversary Combo Breaker
    viktory wrote: »
    They are a temporary, short term measure so if your LA is to be reduced and you cannot pay the rent you'll have to move.


    I was on DHP for six years previous to LHA being introduced Seem to remember having to do without for a week to change over to LHA

    Good news about the 40m extra for DHP

    No way I am moving from this place Its so convienient

    Looks like LA's will be inundated with requests for DHP

    Trick is to not panic move then tie them up for ages with appeals etc.

    They would only have to rehouse me anyway as I would be homeless if my rent does not get paid


    Thanx for info
    coolie
  • dmg24
    dmg24 Posts: 33,920 Forumite
    10,000 Posts
    lacoole wrote: »
    I was on DHP for six years previous to LHA being introduced Seem to remember having to do without for a week to change over to LHA

    Good news about the 40m extra for DHP

    No way I am moving from this place Its so convienient

    Looks like LA's will be inundated with requests for DHP

    Trick is to not panic move then tie them up for ages with appeals etc.

    They would only have to rehouse me anyway as I would be homeless if my rent does not get paid


    Thanx for info
    coolie

    Where is it that you live in London coolie?

    There is no obligation to rehouse adults, and even if they do give you somewhere it could be a hostel/ B&B etc.

    As you are aware of the decrease in entitlement, and the fact that the DHP funds are going to be massively oversubscribed, why not take the initiative and try to find somewhere cheaper now, before the rush starts?
    Gone ... or have I?
  • Jowo_2
    Jowo_2 Posts: 8,308 Forumite
    The discretionary housing payment budget is being increased by 400%! :)

    I understand, too, that there going to be a significant increase in the supply of it, but what is the increase in demand for it? Knowing one without the other is meaningless.
  • Jowo_2
    Jowo_2 Posts: 8,308 Forumite
    edited 22 October 2010 at 1:27PM
    lacoole wrote: »
    ..
    They would only have to rehouse me anyway as I would be homeless if my rent does not get paid

    Are you on Incapacity or Disability related benefits or state pension, for example? What is the current difference between your LHA and your rent and what will the future difference be?

    Make sure that you verify this casual assumption with a housing expert from Shelter. For all you know, it could simply boil down to the local authority helping you to find a private rental property in a cheaper London borough, guaranteeing the deposit, for example.

    A local council is not always obliged to provide assistance, sometimes they are permitted to just provide advice. It depends on how they are obliged to treat at homelessness application, if the person is considered in priority need.

    Also, if the landlord confirms that notice has been served to the tenant because they are in arrears, then the tenant can be deemed to have made themselves intentionally homeless by the council This is premised on the tenant not paying rent when they could have so I don't know how it stands for the many LHA claimants whose income reduces, if there's an expectation that they must move to a property that they can afford and are held responsible if they choose to stay in a property that is too expensive for them.

    In the meantime, here's a handy overview from Shelter about the future LHA changes which doesn't seem as optimistic as your interpretation

    "This change is most likely to affect people who are renting properties in expensive areas like central London, where rents are likely to be much higher than these caps. It is likely that many people will have to move to more affordable properties, or even to a cheaper area, to avoid falling into rent arrears.

    If you are renting a property with a weekly amount above these levels, your housing benefit will be reduced on the anniversary of your claim or if your household circumstances change. If your current rent is above the proposed caps you should seek advice about how you could make up any shortfall, whether you may need to move to a more affordable home, or how to negotiate with your landlord to see if they will agree a cheaper rent.

    Regrettably, for some people, moving to a more affordable property may be the only way to ensure that your rent is affordable in the long term. This may even involve moving to a cheaper area. If your circumstances mean that it is likely to be difficult for you to find somewhere suitable (for example if you need wheelchair access), you may need to allow as much time as possible for this. A lot of people are likely to have to move once the changes are implemented, so there is likely to be less choice by then.

    Unfortunately, many private tenants will struggle financially as a result of the proposed changes. It could be difficult to make up the shortfall between the reduced amount of housing benefit you receive, and the rent you have to pay. Some households will fall into rent arrears.
    If you are in this situation, you will need to take action to avoid the risk of eviction. It may be possible to:
    • Try talking to your landlord to see if they will consider reducing the rent on your property.
    • Apply for a discretionary housing payment to help make up the shortfall."
    http://england.shelter.org.uk/get_advice/paying_for_a_home/housing_benefit_and_local_housing_allowance/future_changes_to_local_housing_allowance
  • lacoole
    lacoole Posts: 26 Forumite
    Tenth Anniversary Combo Breaker
    dmg24 wrote: »
    Where is it that you live in London coolie?

    There is no obligation to rehouse adults, and even if they do give you somewhere it could be a hostel/ B&B etc.

    As you are aware of the decrease in entitlement, and the fact that the DHP funds are going to be massively oversubscribed, why not take the initiative and try to find somewhere cheaper now, before the rush starts?

    I live in Camden

    No way I am moving

    I am not worried as I know I will get the DHP

    With LA's Its like waiting to see who will blink first You must be persistent They always crack I have found

    Coolie
  • elmer
    elmer Posts: 935 Forumite
    Part of the Furniture 500 Posts Photogenic
    edited 22 October 2010 at 1:33PM
    We have run out of all our DHP till next April, and therefore even deserving cases will not be receiving it, so please dont count on it.

    Elmer
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