Housing Benefit, DHP and change in entitlement

925dancer

I've tried having a little look into this myself but am not clear.

At the moment I receive the shared rate of HB and a DHP top up whilst waiting for a PIP claim (currently undergoing mandatory reconsideration). If I'm awarded the care element then my HB goes up to the 1 bedroom rate, weight off my shoulders and I can breathe for a while.

So far so good, all will be well in my world.

However, I recall seeing somewhere that those who received a DHP to cover the BT who were subsequently found to have had it applied incorrectly receive the difference in HB, it is not offset against the DHP. So in effect are paid twice.

Would this apply to myself in a slightly different scenario I appreciate.

It's been seven months plus so far waiting for my PIP claim to be sorted out so I have been receiving the DHP for that time but it may be that I should technically have been receiving the full 1 bed rate for that period.

I'm in no way expecting it, I'll be happy just to keep a roof over my head, just curious as I was surprised it wasn't automatically offset against the DHP in BT cases.

Thanks all!

pmlindyloo

Read this:

http://www.stockton.gov.uk/documents/envhous/housingbenefit/dhppolicy2013.pdf

Scroll down to overpayment of DHP.

925dancer

Ah ha, there we go. Thought it would be a bit odd for it not to be offset.

BP1987

I assume as you have stated that you get the shared accomodation rate that you are renting from a private landlord?

If your renting from a private landlord the 'Bedroom Tax' wont affect you. You're under the LHA rent scheme therefore it does not apply.

cattermole

It is to do with recovery of DHP which applies to both private and social housing.

DHP will be offset against any subsequent back dating of an award unless it is deemed an "official" error which in this case it is not an error it is a delay because of PIP taking so long.

The bedroom tax loophole for tenants since 1996 continuously is an official error in law. But an official error could also occur within LHA and DHP.

925dancer

I assume as you have stated that you get the shared accomodation rate that you are renting from a private landlord?

If your renting from a private landlord the 'Bedroom Tax' wont affect you. You're under the LHA rent scheme therefore it does not apply.

As Cattermole points out, nothing to do with bedroom tax, this is solely about a DHP which can be awarded to either a social or private tenant. I had just seen information about DHPs and refunds in relation to the BT and so wondered about my situation with a DHP for a different purpose.

It is to do with recovery of DHP which applies to both private and social housing.

DHP will be offset against any subsequent back dating of an award unless it is deemed an "official" error which in this case it is not an error it is a delay because of PIP taking so long.

The bedroom tax loophole for tenants since 1996 continuously is an official error in law. But an official error could also occur within LHA and DHP.

Thanks, that makes sense too.

What is interesting on my reading up is that they can't recover it through normal HB payments so will have to pay me the backdated monies then invoice me for the DHP, bonkers! I'm more than happy to pay it back as it were but the convoluted administering of this process is not only a waste of resources and time but also open to abuse, I could just run off into the sunset and spend the money then they would have to start recovery processes where I might only pay back a nominal amount in installments due to being on benefits.

Ah it's a funny old system.

pmlindyloo

To be fair I have not come across many cases where DHP has been awarded to someone who is awaiting a decision for PIP to allow them the one bed rate rather than the shared rate.

In the grand scheme of things I do not believe that the DHP is often claimed back.

Not sure if these statistics are available!

Mr_F_Dorsetty

A DHP is surely a Discretionary Housing Payment which is only paid to people who have a property with more bedrooms than deemed necessary for their use. But then because the house has significant alterations for their disability they receive a DHP.

What has a DHP got to do with a PIP claim? Where's the causal link between the two? How can a DHP be paid on a 1 bed property? It makes zero sense to me.

DHP's and housing benefit run in parallel, they do not share the same path and neither have anything to do with PIP which is a non-means tested benefit.

Just all sounds very odd to me.

pmlindyloo

Mr_F_Dorsetty wrote: »

A DHP is surely a Discretionary Housing Payment which is only paid to people who have a property with more bedrooms than deemed necessary for their use. But then because the house has significant alterations for their disability they receive a DHP.

What has a DHP got to do with a PIP claim? Where's the causal link between the two? How can a DHP be paid on a 1 bed property? It makes zero sense to me.

DHP's and housing benefit run in parallel, they do not share the same path and neither have anything to do with PIP which is a non-means tested benefit.

Just all sounds very odd to me.

Actually councils have a far greater freedom to use DHP than you would imagine.

See here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/184207/discretionary-housing-payments-guide.pdf

As you can see it is a guide.

Obviously we do not know the OP's exact circumstances but it would have been looked at in detail before the award was made.

925dancer

Actually, there is a causal link between PIP and housing benefit. An award of care changes my entitlement from that of the shared rate to the one bedroom rate.

When I moved into the property I was able to afford it without any financial assistance as I was working and studying. I have had to stop both of those. I am in a fixed term tenancy, which is one reason an award of a DHP could be used, there are many other reasons factored in too, primarily due to the nature of why I'm unwell. I had to supply a lot of information and evidence in order to be made an award which is currently being reviewed on a monthly basis.

DHPs were not exclusively brought in to mitigate the impact of the bedroom tax, they just became far more well known about. They've been used for a very long time in the private rented sector.

Anyone else want to judge me and make ill informed comments on something they don't really know much about?

cattermole

Quite 925 Dancer DHP's are nothing more to do with the Bedroom Tax than they are for LHA, both sectors have equal access to DHP and in fact the majority of LHA particularly in London is going to fund the shortfall in private rentals. DHP existed long before the BT was even thought about!! and it was solely for the use of the private rented sector.

The rules around recovery are covered by other regulations. Fluffy did post a link about it on one of the threads.

In fact DHP's original purpose is exactly for situations like yours which were deemed temporary. I.e. you are only entitled to the shared room rate under LHA and need the payment for a one bedroom which you get if you are disabled, which you can't get until you get your PIP award. Crazy that it is taking so long for a PIP award to come through in the system!!

It is actually the biggest argument against funding long term gaps for rent in the Bedroom Tax by DHP because it was purely designed originally for short term emergencies and shortfalls.

This is covered in case law but was ignored by the recent judgement on Disability cases and the bedroom tax, but we won't go there as it will lead to a long debate