Discretionary Housing Payments: A comprehensive guide

An introduction to Discretionary Housing Payments (DHPs)

If you are struggling to pay your rent, you can apply to your local council for a Discretionary Housing Payment (DHP). These payments can help you meet a shortfall in housing costs. As the name implies, your local housing authority has discretion over payments. They are not a right.

What are DHPs?

Discretionary Housing Payments (DHPs) are a form of financial support for rent payments. A DHP can make up a shortfall between Housing Benefit, or the housing element of Universal Credit, and the cost of your monthly rent. It is up to your local council to decide how much and for how long you need a DHP.

Who qualifies for DHPs?

If you rent privately and your benefits do not match your rent, you can apply for a Discretionary Housing Payment (DHP).

DHP funding is available in England and Wales. DHPs are also available in Northern Ireland and Scotland.

You may be able to get a DHP if:

• You rent privately and the Local Housing Allowance (LHA) in your area is set at less than your rent.
• Your Housing Benefit has been reduced because you have a spare bedroom – the so-called bedroom tax.
• Your Housing Benefit has been reduced because you have non-dependent adults living with you.

What is the Local Housing Allowance (LHA)?

Local Housing Allowance (LHA) rates are used to calculate Housing Benefit for tenants renting from private landlords. They are based on rent prices from local letting agents, landlords, tenants. This is gathered from what is called a Broad Rental Market Area (BRMA).

LHAs are meant to show officials how much rent people like you, with the same number of bedrooms or household needs, are paying.

In April 2024 a four-year freeze on the allowance came to end. The freeze had meant LHA rates had not increased to take account of inflation and an increase in rents.

You can search for your LHA rate online.

How to apply for a DHP

Each council has a different application process.

1. Contact your local council to apply. Find your local council online.
2. Apply online using your council’s website.
3. Your council will look at your circumstances and decide whether to grant you a DHP, how much to pay you and for how long.

What documents are required for a DHP application?

When you apply for a DHP you will need to provide details of your income, plus your National Insurance number and all the benefits you are receiving.

You will need to provide:

Situations and expenses DHPs can cover

DHPs are used to cover rent and housing costs if your benefits no longer cover them. For example:

1. Your rent was put up by £50 a month four months ago and, because your benefit stayed the same, you now owe your landlord £200.
2. Your benefit was reduced by £100 a month because a non-dependent adult came to live with you. That was six months ago, and you now owe £600.

In both cases you can apply for a DHP. Remember, it is discretionary, so you may not get help at all.

If you cannot pay your rent

If you are experiencing a rent shortfall because your rent is increasing, or your benefits have been reduced, then you can apply for an ongoing DHP.

Rent increases due to arrears

If you owe rent because your benefits were reduced and/or your rent is increasing, then you can apply for a DHP.

Note: you cannot apply for a DHP to cover rent arrears if your benefit was enough to cover your rent when you went into arrears. You may be able to apply for a single DHP to pay off the arrears.

Help with rental deposits and moving costs

A Discretionary Housing Payment can be used as a deposit to secure a new property, plus any rent you may need to pay in advance. It can also cover removal costs. Some councils offer additional help. This includes the rent deposit guarantee scheme to help with the one-off costs of moving. Find your local council.

Using a DHP to help pay your mortgage

A DHP will not normally be given to cover a mortgage shortfall. This only happens in unusual cases.

How to get your DHP application approved

Before you apply for a DHP you will need to be claiming the housing costs element of Universal Credit. You will also need to tell your local authority:

• Why you are unable to meet the cost of your rent, along with how much you owe
• How you are at risk of homelessness because you cannot pay your rent or housing costs
• The cause of the problem – if you must pay the bedroom tax or your benefits do not cover your full rent

How much DHP could you get and when are they paid?

Each case is different and will depend on your local authority and its DHP criteria. You might get enough to cover the difference between your benefits and your full rent. But you might get extra help that is not enough to meet the full cost of your shortfall.

DHPs can be paid weekly, fortnightly, monthly or as a lump sum, and they can also be backdated.

How long are DHPs paid for?

DHPs are paid out of council budgets. These are set every year. That means you can get ongoing help but only for a year at most. You can reapply for a Discretionary Housing Payment if it stops but you still need help with rent.

What can I do if the council refuses my DHP application?

You may be able to get other help with your housing costs, such as local grants and charities. We have listed some below. If your circumstances change you may be able to re-apply for a DHP.

You can ask your local council to look at your application if you feel they have not acted fairly. You may need to supply additional information, such as an income and expenditure sheet, or medical information, such as if you need an extra room to accommodate the needs of a disabled member of your household.

What a DHP can and cannot cover

You need to be claiming benefits to apply for Discretionary Housing Payments.

You can get a DHP if:

• You are claiming Housing Benefit or the housing costs element of Universal Credit
• Your benefits no longer meet the cost of your rent
• You need to move out of your home and you cannot afford a rental deposit

You cannot get a DHP if:

• You are in rent arrears but were claiming enough benefit to meet your monthly payments
• If you rent has increased because of your arrears
• You need to pay for furniture or household items

DHPs and housing benefit

Discretionary Housing Payments (DHPs) are for people claiming Housing Benefit or Universal Credit.

Housing Benefit and Universal Credit are regular payments to help with ongoing costs while DHPs are awarded at the discretion of your local authority.

What is the difference between a DHP and Universal Credit/Housing Benefit?

Money for DHPs is awarded from a limited budget that is set each April. This is why it can only be paid for a limited amount of time.

Can I appeal a DHP decision?

DHPs are not benefit payments so there is no formal appeal process. If you disagree with your local authority’s decision you should request a review in writing. Most councils will have a time limit to reply, which may be a month or longer after the original decision is made.

In some cases, you may be able to request a judicial review via the Local Government and Social Care ombudsman.

Extra help with housing

You may be able to get extra help with benefits and Council Tax. Check whether you are eligible for Council Tax support, also known as a Council Tax reduction. Make sure you claim all the benefits you are entitled to using our BenefitGlance tool. There may be additional housing help via grants in your local area, but you will need to speak to your local council.

Other help and advice is available via Shelter UK, MoneyHelper and Citizens Advice.