Under what circumstances would councils pay DHP (Discretionary housing payment) 8 February at 4:06PM in Benefits & tax credits 9 replies 370 views

seatbeltnoob

I'm privately renting through UC. I am very fortunate in that the place is within LHA amounts.

I am looking to move to a different place due to landlord needing to sell up. Everything else is at least £300 over the LHA amount.

The way the UC system is set up, that £300 shortfall qould require claimants to earn an additional £666 to cover the increase in the rent. 666 after taper is £300.

This seems really unfair, if the claimants rent is above the LHA, they really should allow you to earn that amount without the UC credit being tapered for that difference between LHA amount and actual rent.

I was wondering whether Discretionary housing payment will cover this or is it only for extreme circumstances?

Brie

I thought DHA was only for extreme circumstances like paying a one off of a deposit or very temporarily paying something as someone's earnings had dropped due to an accident.  I may be wrong.

seatbeltnoob

I am not sure how they work out the 30% lowest percentile to come up with a LHA. I'm filtering the cheapest properties I can find across all the sites, you go further and further out to rural area and then check the LHa and they're still much lower than the rent advertised.

Literally none that are at LHA and 30% of properties are supposed to fall under LHA.

elmer

In Scotland a DHP top up for UC claimants is normally paid, Im not sure if you will get the full amount paid now as councils are given a set amount for the year in April, and may be running out soon

fatbelly

https://england.shelter.org.uk/housing_advice/benefits/discretionary_housing_payments_dhp

calcotti

seatbeltnoob said:

I am not sure how they work out the 30% lowest percentile to come up with a LHA.

I don’t think the LHA matches that anymore - it’s been fixed for a few years and no increase will be applied in April. From memory it was originally based on 50% percentile.

Different local authorities will have different policies and ‘generosity’ will vary. At the name implies the decision is at the discretion of the local authority.

nicx83

Part of the problem with dhp is that local authorities have a set pot available to spend once spent that’s the end of dhp. With the gap between rent and lha rates growing it’s very easy for it to run out. 

Dhp is supposed to be a short term fix while trying to increase hours or improve situation. Most will be unlikely to award if you move into a more expensive property without good reason. 

No one should rely on dhp as a long term solution but more and more need it to be due to the awful decision of freezing lha rates 

Spoonie_Turtle

calcotti said:

seatbeltnoob said:

I am not sure how they work out the 30% lowest percentile to come up with a LHA.

I don’t think the LHA matches that anymore - it’s been fixed for a few years and no increase will be applied in April. From memory it was originally based on 50% percentile.

IIRC it was raised back up (!!) to 30% in early 2020, but frozen again since then.

@seatbeltnoob Presumably it's based on all rents in the area, not just what's available - chances are the homes with cheapest rented are all already occupied.

calcotti

Spoonie_Turtle said:

IIRC it was raised back up (!!) to 30% in early 2020, but frozen again since then..

That’s what I thought (but was 50th percentile when introduced by Labour in 2008 but cut to 30th percentile in 2011 by the Coalition government).

NedS

Each local council will likely have their own set of rules, so all you can do is contact your council who will look to see if they can support you through discretionary housing payments. Our local authority apply a sliding scale over a period of time whereby any support is gradually withdrawn. As others mention, they have a pot and when it's gone, it's gone. They are however keen to help those they can.