Discretionary Housing Payments
Read on to find out more about Discretionary Housing Payments and how they may help to top up your Housing and/or Council Tax Benefit if you are suffering from financial hardship.
Payment Policy and Procedure
Making an application
What are Discretionary Housing Payments?
We can award a Discretionary Housing Payment (DHP) where someone needs extra help with their ‘housing costs’. DHPs are not Housing or Council Tax Benefit, but you must be in receipt of one or both of these benefits to be able to claim.
We can consider awarding a DHP if there is a gap between the amount of rent or Council Tax you have to pay and the amount of Housing Benefit and Council Tax Benefit you receive. In certain cases, the difference between the Housing Benefit we pay and the rent you are being charged may be because there are certain parts of your rent, known as service charges, which Housing Benefit cannot cover. If this is the case, we cannot award a DHP for those amounts.
DHPs can be awarded to top up Housing or Council Tax Benefit, but the total amount cannot be more than your rent liability for Housing Benefit, or the amount of Council Tax you have to pay. The shortfall to these benefits may exist for a number of reasons, for example:
- Housing Benefit has been restricted under the maximum rent rules
- The presence of a non-dependent the household
- The level of income of the household
- Single Room Restriction, due to the claimant being under 25 years of age.
There are some charges that DHPs cannot cover, for example:
- Charges for water rates
- Charges for tenants levy
- Service charges (e.g. heating, hot water etc)
The amount of the DHP award depends on the your individual circumstances, and you must demonstrate that you are suffering from financial hardship due to the shortfall in your benefits. The award is intended as a short-term measure to alleviate poverty or difficult circumstances and should not be relied upon in the long term.
The funding for DHPs comes from central government and is limited each year, so when it has been spent no more awards can be made.
How do I apply for a DHP?
To apply for a DHP you will need to complete a one-page application form. The form will ask for a breakdown of your weekly expenditure and reasons why you are requesting additional financial help.
The breakdown of your expenditure should include details of how much you spend each week on such items as:
- Food
- Bills – electricity, gas, telephone
- Clothing
- Children’s expenses
- Travel costs
You must identify and list all your household expenses.
You do not normally have to provide details of your income as we obtain this information directly from your current Housing Benefit and Council Tax Benefit claim.
You can download and print off an application form or telephone the DHP Admin Centre on 0114 273 6983 during office hours to request a form. You can also email benefits@sheffield.gov.uk to request one, please state DHP Application Form Request in the header of the email.
You can also apply in writing to the Discretionary Housing Payment Administration Centre at the following address:
Discretionary Housing Payment Administration Centre
PO Box 1283
Town Hall
Sheffield
S1 1UJ
The application form is also available at various sites across the city, including advice centres and Housing Aid. The completed form needs to be returned to the above address.
You may also find it helpful to read about the Policy and Procedure for claiming a DHP.
What happens next?
Once your claim has been assessed, you will be informed of the decision in writing.
How will the DHP be paid?
The DHP will be paid as a single lump sum payment.
- If you are a council (Sheffield Homes) Tenant, the DHP will be paid directly to your Rent and Council Tax accounts
- If you are an Owner Occupier, the DHP will be paid directly to your Council Tax account
- If you are a Private Tenant, the DHP will be paid under the same arrangements as Housing Benefit (i.e. either directly to yourself or directly to your landlord)
What do I do if I disagree with your decision?
If you do not agree with our DHP decision you can write to us and ask us to look at your application again. To do this you must write to the Discretionary Housing Payment Administration Centre within one calendar month of the date of the decision letter, providing any additional information that you feel may help your application. We will then review our decision and write to you with the outcome.
Tell Us What You Think
If you would like to give us feedback on the Discretionary Housing Payment Administration Centre please contact us or complete a 'Tell Us What You Think' form.
Policy Statement
We fully support the aims of the Discretionary Housing Payment (DHP) Scheme. This scheme, which was introduced on 2 July 2001, aims to relieve financial hardship associated with excessive housing costs. In order to do so, the Council has established a dedicated post, Discretionary Housing Payments Officer, (DHPO) who will work in conjunction with Senior Officers to administer the DHP scheme. The procedures that are to be followed in the administration of this scheme are outlined later in this document.
We will pro - actively promote the DHP scheme by working in partnership with Community, Voluntary and Statutory organisations to promote the availability and take up of DHP’s. In doing so, the Council will make claim forms and literature on DHP’s available to the wider community via the Council Website, Area Housing Offices, Housing Aid, Advice Centres, Registered Social Landlords, and other suitable locations across the city.
Applications for a DHP will only be considered where there the customer is entitled to Housing or Council Tax Benefit and there is a shortfall between the customer’s Housing Benefit and contractual rent (less all ineligible service charges), or between a customer’s Council Tax Benefit and Council Tax liability (a list of the ineligible Housing Costs is listed in the Administrative Procedures section of this document).
The customer must also demonstrate that he/she is suffering from financial hardship as a direct result of his / her housing costs. For the purpose of this scheme, housing costs include rent and Council Tax liability. A DHP can be awarded to assist in the payment of rent, Council Tax or both. However, a DHP will not be paid in respect of arrears of rent or Council Tax.
The award of a DHP cannot result in a combined payment of Housing and/or Council Tax Benefit, and the DHP, being higher than the total eligible rent or Council Tax. When making a decision on the award of a DHP, the Council has discretion as to whom, how much and for how long a DHP may be awarded. The amount awarded shall be enough to alleviate the hardship that the customer is experiencing. Hardship that arises from non-housing costs will not be taken into consideration when deciding on the award of a DHP.
All decisions are made by taking account of the individual circumstances of a customer including their needs, the needs of their family, and local rental market conditions. The decision on whether to award a DHP is dependent on the suitability of the accommodation to the circumstances of the customer.
It is not the purpose of the DHP scheme to support artificially high levels of rent.
Where a customer applies for a DHP and the rent is considered by the Rent Service to be significantly high the Council may refuse the application for a DHP on the grounds that the rent is significantly high for either the accommodation, the area or the customers personal circumstances,
When considering whether it is appropriate to award a DHP, the Council will take in to consideration a wide variety of circumstances, some of which are listed below as a guide for customers and advisers. This list is not exhaustive and other circumstances will also be considered:
- Is there any genuine risk of eviction if help with housing costs is not provided?
- What other outgoings does the customer have which make it harder for them to meet their housing costs?
- What assets does the customer have which might be used to help with their housing costs?
- Does the customer have disregarded income that might be used?
- Is it possible for the customer to negotiate a rent reduction with the landlord?
- Could the customer relocate to alternative accommodation that would incur lower Housing costs?
- Does the customer or a family member suffer from health problems that make it essential for them to remain in their current accommodation, and would it be detrimental to their condition if they were to move to other accommodation?
- Is the hardship having particular effects on individuals within the family for instance young children?
- Are non-dependants living in the household contributing financially?
- Is there a risk of the customer being declared statutorily homeless if a payment is not made?
The Council reserves the right, when awarding a DHP, to advise customer’s to seek alternative accommodation if it feels that the customers’ current accommodation is inappropriate for their needs.
When considering the circumstances of the customer it is essential that the Council obtain a breakdown of the customer’s financial situation. A personal budget sheet is incorporated within the claim form for this purpose.
Debts, arrears, and fines will not be taken into consideration when assessing the customer’s expenses. However, Social Fund Loan repayments will be classified as an expense, as the loan has been approved for a specific and valid purpose.
We maintain that it is reasonable to look into a customer’s spending pattern to establish if any hardship can be minimised, but recognises that the customer should not be expected to reduce expenditure on essentials, such as food and fuel unless expenditure in these areas is unreasonably high.
It may be reasonable to expect the customer to reduce expenditure on non-essential items, such as mobile phones, cable television, cigarettes, entertainment and leisure activities. However, the personal circumstances of the customer will be considered when determining if this expenditure is non-essential.
For the purposes of the assessment, the Mobility Component of Disability Living Allowance will not counted as income as it is awarded specifically for help in getting around. The Care Component of Disability Living Allowance, along with all other State Benefits, will be included in the calculation of the customer’s income.
The Government will determine, annually, the level of the grant to be paid to the council to cover the total spending on DHPs. We will not spend more than the Government permitted amount on this activity. All decisions on the award of DHP’s will be made on this basis. When awarding a DHP, we will inform our customers that the DHP scheme is cash limited and that future payments of DHP’s are not to be relied upon. We will maintain effective monitoring systems to ensure that there is no overspend of the permitted amount.
We recognise that the scheme is subject to internal and external audit, and we will ensure that there are clear systems in place to facilitate such processes.
We undertake to review annually the policy, procedures and administration of the DHP scheme.
Claiming a Discretionary Housing Payment
Discretionary Housing Payment Scheme: Administrative Procedures
In order to be considered for a DHP a customer must be entitled to Housing Benefit or Council Tax Benefit for the duration of the period that they are wishing to claim a DHP. Therefore, a DHP claim will only be considered once a decision has been made on a customer’s Housing Benefit/Council Tax Benefit entitlement.
DHPs can only be awarded to cover housing costs. This means eligible rent and Council Tax. A DHP cannot be awarded for the following:
- Ineligible service charges (those specified in Schedule 1 to the Housing Benefit (General) Regulations 1987;
- Charges for water, sewerage and environmental services (as defined and calculated under the Housing Benefit (General) Regulations 1987;
- Increases in rent due to outstanding rent arrears;
- Liability to meet Council Tax where second adult rebate is payable;
- Any reduction in benefit as a result of a DSS sanction (as defined in the Discretionary Financial Assistance Regulations);
- Any reduction in benefit due to a Benefit Direction arising from the customer not complying with a direction by the Child Support Agency;
- Any reduction in benefit as a result of non-attendance at a work-focused interview;
- Any reduction in benefits due to a Job Seekers Allowance sanction for 16/17 year olds;
- Any reduction or loss of benefit due to a Job Seekers Allowance employment sanction;
- Council Tax where the customer is entitled to Housing Benefit but not Council Tax Benefit, and;
- Housing costs where the customer is entitled to Council Tax Benefit but not Housing Benefit.
DHPs are not payments of Housing or Council Tax benefits, but are made taking into account any payment of these benefits. The Council’s DHP Administration Centre (DHPAC) will administer the scheme. A dedicated DHP Officer (DHPO) will have specific responsibility for this task.
The address of the DHP Administration Centre is:
PO BOX 1283
Town Hall
Sheffield
S1 1UJ
The phone number is:
(0114) 273 6983
Telephone contact can be made between the hours of 9.00 a.m. and 5.00 p.m. Monday to Friday.
The customer or his/her representative must make a written claim for a DHP to the council’s DHP Administration Centre on a council approved claim form. We will make claim forms available for this purpose and, where practicable, issue them within two working days of the DHP Administration Centre receiving a request. Any request for a DHP may be made verbally or in writing and made be made by a customer or someone acting on the customer’s behalf.
The claim form invites the customer to state the details of their circumstances. It also contains a budget sheet allowing them to indicate their weekly expenses, in order for the application to be assessed.
The customer will be asked to return the claim form within 28 days of its issue in order for it to be considered from the date of enquiry. If it is returned after this period, the claim will be considered from the date of receipt. The DHPO has the discretion to extend the time limit for the return of the form where there are exceptional circumstances.
If a customer requests a DHP within 28 days of the date that their claim for HB/CTB has been fully determined (this includes those cases where an appeal may be lodged against an initial decision), then the claim for DHP will be considered from the date the HB/CTB has been awarded.
If the request for a DHP is made outside of the 28 days from the date the claim for HB/CTB is finally determined, the claim for DHP will be considered from the date the DHP claim was requested. If a customer wishes for the claim for a DHP to be considered from an earlier date than the date the claim was requested, then they must request backdating of the claim for DHP and provide a detailed explanation as to why they were unable to make a claim for a DHP at an earlier date.
Decision Making
When the claim form is returned it is considered by the DHPO and if it is decided that further information is required the DHPO will request this in writing to the customer or his/her representative, giving 28 days for the information to be provided.
If the DHPO is satisfied that all the required information to support the DHP claim has been supplied, the DHPO will make a recommendation to a senior officer (normally the Benefits Customer Liaison Manager) as to whether a DHP should be made.
The Benefits Customer Liaison Manager will consider the recommendation and, taking into account all the information provided, decide whether or not to uphold the recommendation made by the DHPO.
We will endeavour to make a decision within 14 days of receipt of a complete claim being received by the DHP Administration Centre.
If the decision is to award a DHP, the DHPO will draw up a payment requisition, which is sent to the Creditors Section to requisition a cheque.
The payment is held on our payment system until the Assistant Head of Corporate Finance (AHCF) reviews the case. If the AHCF agrees with the recommendation the payment is released.
The DHPO will issue an appropriate letter to the customer advising of the award of a DHP. Customers will receive written confirmation of the outcome of their application for a DHP within seven days of a decision being made. This confirmation will include the amount and duration of any award, the reasons for the decision and their right to request a review of the decision.
All decision letters will advise customers whose claim for a DHP has been successful that, at the end of their award period, they can reclaim a DHP. We may, at the discretion of the DHPO, automatically issue a reclaim form to existing customers
Our Creditors Section will issue a cheque in respect of the award of the DHP to either the customer, or his/her landlord/agent. Where payment is being made to someone other than the customer, we will notify that person of the award by way of an enclosure to be sent with the payment, detailing the period of the award and to whom it relates. The notification will also advise them of their duty to report any change in the customer’s circumstances that may affect entitlement to the DHP. It will also inform them that we may seek recovery of any overpayment from the person to whom the DHP has been paid.
Payment of Discretionary Housing Payments
Payments are made in one of the following ways:
Rent Allowance cases
The DHPO raises a payment in the form of a BACS to cover the period of the DHP.
Rent Rebate cases
Details of the DHP are sent by memorandum to the Financial Services Team, Corporate Finance, who liaise with Rent Services to credit the customer’s rent account.
Council Tax Benefit cases
Details of the DHP are sent by memorandum to the Accounting System and Control Team, Corporate Finance, who liaise with the Council Tax section to credit the customer’s Council Tax account.
Amount and duration of a Discretionary Housing Payment
Awards will usually be made for a period of 13 weeks unless the individual circumstances of a case require a differing period.
Customers will be given an opportunity to reclaim at the end of the period of award. If at the time of the initial award it is felt that the accommodation is inappropriate, the customer will be advised to look for alternative ways of alleviating the hardship, for example, moving to cheaper accommodation.
The customer will be asked on the application form to whom any payment should be made. If no indication is given, then the DHP will be paid to whoever receives the Housing Benefit.
In exceptional circumstances, an award may be backdated provided there is also payment of Housing and/or Council Tax Benefit in respect of the backdated period. A DHP may not be backdated to a date before the start date of the scheme, 2 July 2001
If the decision is not to award a DHP, a letter is issued to the customer explaining the decision and advising them that they can request a review by writing directly to the Reviewing Officer at the DHPAC. The customer is advised that they have one calendar month from the date of the decision letter in which to do this. The DHPO has the discretion to extend this time limit in exceptional circumstances.
Reviewing a DHP decision
Although there are no formal rights of appeal on DHP decisions, customers will be given the opportunity to have a decision on their claim reviewed by a different council officer from the one making the original decision. The right of review will also be given to someone from whom we decide to recover an overpayment of a DHP.
Third parties, such as landlords, will not be given the right of review on decisions other than one where it has been decided to recover an overpayment from them.
Requests for review must be made in writing, although verbal requests will be accepted in certain circumstances e.g. where there are language/literacy problems. Any request for review, either written or verbal, must be received by the DHP Administration Centre within one calendar month of the decision being notified to the customer. The Reviewing Officer may extend this period if there are special reasons for doing so. The customer may be asked to provide additional information in support of the request for review.
Following a review of the decision, the Reviewing Officer will pass their decision back to the DHPO for action.
We will endeavour to ensure that the review takes place within fourteen days of the request being received by the DHP Administration Centre.
If the decision is to uphold the request the DHPO will process the claim in accordance with the normal procedure.
Following a review of the claim, a letter explaining the Reviewing Officer’s decision will be issued to the customer. This letter will also inform the customer that the Reviewing Officers decision is final and the customer has no further right of review.
Overpayments
Customers will be advised of their duty to notify us of any changes in their circumstances that may affect their entitlement to a DHP. These will normally be the changes that affect their entitlement to Housing Benefit or Council Tax Benefit at the address for which the DHP is claimed. They will also be advised that we will seek to recover any overpayment of DHP that they receive.
Where an overpayment of a DHP is identified recovery will be sought from the person to whom it was paid.
Apply here for Discretionary Housing Payment
If you would like us to send you an application form, please telephone (0114) 273 6983 or write to
DHP Administration Centre
PO Box 1283
Town Hall
Sheffield
S1 1UJ
If you would like to print the application form yourself, please click on the link below to download the Discretionary Housing Payment application form.
Please ensure that you complete both sides. You may also wish to review Sheffield Council Personal Information Policy.
Downloads
Discretionary Housing Payment application form (92.3 KB)