Discretionary Housing Payments.

Background

A Discretionary Housing Payment (DHP) provides customers with further financial assistance when a Local Authority (LA) considers that help with housing costs is needed. When considering DHP applications LAs have a duty to act fairly, reasonably and consistently. Each case must be decided on its own merits. The amount of money left from the government contribution will not be a factor in decisions. The LA has an overall DHP cash limit of two and a half times the government contribution. LAs have a broad discretion in how they interpret the term housing costs with regard to DHP awards. The level of a DHP award may cover all or part of a shortfall or assist with the cost of taking up a tenancy. The individual LA will decide how much of a shortfall to meet however the level of Housing Benefit (HB) plus the DHP must not exceed the weekly eligible rent on the home when paid as a weekly sum (nor must the Council Tax benefit (CTB) plus the DHP exceed the weekly Council Tax liability). Following the abolition of CTB from April 2013 DHPs will no longer be made towards council tax liability.

This DHP procedure is being revised in the light of increased funding and recent guidance from the Department of Work and Pensions and to ensure Walsall MBC can support people facing a significant impact from the recent changes to HB including the introduction of a benefit cap, the introduction of the social sector size criteria and the changes to local housing allowance arrangements.

Overview

Walsall council is committed to addressing and assisting with issues such as poverty, benefits, housing and employment. The intention for DHP applicants is that Walsall council will initially look at the customer’s broader issues and the underlying source of these issues. We will work with our customers to identify the causes of why a DHP is being requested and to consider a more maintainable and suitable option which is better for the customer. We will look to find a longer term solution by supporting our customers through their issues and needs, calling on other stakeholders and support agencies where required.

In dealing with customers the LA will consider whether a DHP is the best answer to the issues raised by the customer or whether there are better options that can also be suggested.

When considering whether to make a DHP award the LA will also have certain objectives in mind, these include:

 Alleviating poverty

DHP procedure v2.2 25.2.2013  Encouraging/sustaining people in employment  Tenancy sustainment and homeless prevention  Helping those who are trying to help themselves  Keeping families together  Supporting the vulnerable and the elderly  Helping the customers through difficult events

Claiming a DHP

 DHPs must be claimed. If the claim is made by phone, email or in writing we will complete the DHP questions with the customer on the phone. If the claim is made in person the questions should be completed there and then.  Usually it will be the person claiming HB or Universal Credit who claims DHP. However we will accept a claim from someone acting on that person’s behalf e.g an appointee  Supporting evidence may be requested but if not provided a decision will be made on the information already held.  Where we identify potential entitlement to DHP but no claim has been made we will encourage the customer to claim.

Deciding if a DHP is payable

 To qualify for a DHP a customer must be entitled to either HB or UC (or prior to April 2013 CTB). A DHP cannot be awarded in respect of a period before 2 July 2001 nor can a DHP be awarded to a customer who solely receives Council Tax Reduction. We should be satisfied the customer requires further financial assistance with housing costs before granting one.  We should look at each claim on its own merits. When deciding if the customer requires help with housing costs we will take the following into account –

o the shortfall between the HB and the rental liability o any steps taken by the customer to reduce their liability o the financial and medical circumstances of the customer, their partner and any dependants/other occupiers of the customer’s home o the income and expenditure of the customer, their partner and any dependants/other occupiers of the customer’s home o allow reasonable level for expenditure o exclude unreasonable debts/expenditure and/or expect them to reduce o not count mobility allowance as income but offset it against travel expenses except when the customer is on the motability scheme o any savings/capital held by the customer/family

DHP procedure v2.2 25.2.2013 o the level of indebtedness of the customer/family o the exceptional nature of the customer and their family’s circumstances o the amount available in the DHP budget at the time o any other special circumstances brought to our attention

 We will use our data sharing powers to obtain relevant information from the DWP to assess DHP claims  We will specifically consider customers affected by the social sector size criteria who fall into the following groups o Accommodation adapted for disabilities o Foster carers  We will also encourage/assist the customer to claim any other Welfare Benefits they may be entitled to and seek independent debt advice where appropriate  The DHP decision will be based on all relevant circumstances and could be an amount below the difference between the liability and the HB (or CTB) award.  As UC cases will not be receiving HB and do not receive a specific amount towards housing costs we will decide on the amount of DHP – it will not exceed the weekly eligible rent  An award of DHP does not guarantee that a further award will be made. On a reclaim we may take into account what steps the customer has taken to find cheaper accommodation or reduce their expenses before making a decision to grant a further DHP.  We will make a decision on a DHP award within seven days of receipt of a claim for DHP

What DHPs can cover

We will consider awarding a DHP for shortfalls caused by –  Reductions in HB or UC where the benefit cap has been applied  Reductions in HB or UC where the social sector size criteria has been applied  Local Housing Allowance (or Rent Officer) restrictions  Non-dependant deductions,  Income tapers,  Increases in essential work related expenditure such as increased fares to work if a customer has had to move because they could not afford to live in proximity to their work following a reduction in their LHA rates.  Rent deposits/rent in advance for a property the customer is yet to move into if the customer already gets HB or UC at their present home – we will check to see if the proposed property is affordable for the customer, if they are due to get a deposit returned or whether they could first get help from the LA’s rent deposit guarantee scheme. As a lump sum payment for rent in advance is not made in respect of a period it can exceed the weekly

DHP procedure v2.2 25.2.2013 rental liability and we will only check that the customer is entitled to HB at the point of making the award. We will consider rent in advance for properties outside the Walsall Borough as long as the customer currently receives HB or UC in the Walsall area.

 Removal costs

What DHPs cannot cover

 ineligible service charges or water/sewerage charges  increases in rent due to outstanding rent arrears  certain sanctions and reductions in DWP benefits  suspension of HB  shortfalls caused by recovery of a HB overpayment

Period of award

 We will decide the length of the award based on the facts, the evidence supplied and any known future changes. Where there is a specific end date we will make it clear to the customer what the period of the award is. The DHP could be for a one off housing need or an indefinite award until the customer’s circumstances change.  The start date of the award will normally be the Monday following receipt of the DHP claim.  In certain circumstances we will pay from an earlier date - as there are no rules on backdating DHPs we will act consistently when deciding whether or not to backdate.  The minimum period for an award is one week.  The notification letter asks that the customer contact us if they wish to reclaim when the DHP runs out.

Payment

 The LA will decide who the most appropriate person to pay the DHP to is  For RSL tenants and private tenants a DHP to assist with rent will usually be paid to the current HB payee (i.e to the customer/appointee or landlord).  Prior to its abolition from April 2013 a DHP to assist with Council Tax will be paid to the relevant Council Tax account.  DHP payments are normally made at the same frequency as the regular HB payments.  When making a DHP to assist the customer with securing a new tenancy we will consider making the payment to the landlord rather than the customer.

DHP procedure v2.2 25.2.2013 Notification

 We will inform the customer of the DHP decision within 7 days of the decision.  Where the DHP claim is unsuccessful we will set out the reasons for the decision and will provide information about the review process.  Where the DHP claim is successful we will advise o The weekly amount of DHP awarded (as separate to the amount of HB/CTB) o Whether it is paid in advance or arrears o The period of the award o How, when and to whom the DHP will be paid o The requirement to report relevant changes of circumstance o Any special conditions relevant to the award (e.g need to look for cheaper accommodation)

Appeals

 As DHPs are discretionary arrangements there are no appeal rights to an HB(CTB) tribunal although both judicial review and the government ombudsman are available options.  Customers can request a review of the LA’s decision – they should do this within one calendar month of the date of notification. This can be extended in certain circumstances.  The reconsideration will be passed to the Appeals team.  The customer will be notified of the outcome within 7 days.

Changes of circumstances

 DHPs will be revised where there has been a material change in circumstances.  Customers have a duty to inform the Authority of any change to their or their household’s circumstances.  We will stop a DHP if we decide that DHPs are being, and/or have been, made because someone has misrepresented or failed to disclose a material fact, fraudulently or otherwise or when they have been paid as a result of an error.

Overpayments

 We will seek to recover overpayments of DHP. However in certain circumstances the overpayment may be waived.

DHP procedure v2.2 25.2.2013  Overpaid DHPs may not be recovered from ongoing HB/CTB – we will recover them by requesting repayment of the debt from the claimant. This will normally be in the form of an invoice.  The overpayment decision letter will set out the customer’s rights if they are unhappy with the decision.

Assurance and Monitoring arrangements

 We will submit a DHP claim form providing details of expenditure to DWP accounting services twice a year (1st September and 30th April)  We will also provide a broad breakdown of expenditure on successful DHP applications recording the main reason for the award splitting this between o Supporting customers affected by the benefit cap o Supporting customers affected by social sector size criteria o Supporting customers affected by LHA reforms o Any other reason  The total of these 4 categories will be consistent with the total figure in the DHP claim submitted twice yearly

 We will profile our DHP budget to predict when demand is going to increase and the likely scale of shortfalls.

 We will monitor the DHP budget and keep records on amounts requested against amounts awarded, type of accommodation, reason for award, duration of award and customer’s characteristics.

Other issues

 LA staff (including Housing staff) will help with negotiation with landlords with a view to reducing the rent in return for the offer of direct payment of HB – a DHP may then not be needed.

 If the customer requires an extra room because of a health problem that affects them or their partner we should firstly consider if they meet the criteria for allowing an extra room where a non-resident carer stays overnight.

 If the customer has severely disabled children who are unable to share a bedroom overnight the LA will consider granting an extra bedroom when considering social sector size criteria.

Liaison

DHP procedure v2.2 25.2.2013  When a DHP application is decided we need to inform the Tenancy Liaison Officer in Regeneration. This role is part of the Authority’s strategy to avoid homelessness.

DHP procedure v2.2 25.2.2013