STRUGGLING Universal Credit claimants can get help with rent costs that could be worth thousands of pounds.
An investigation by The Sun found that councils have given payments worth as much as £32,000 over the past year to the most hard-up tenants trying to keep a roof over their heads.
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After freedom of information requests sent to 30 of the biggest councils, The Sun found that the average Discretionary Housing Payment (DHP) was £965.
The difference in the maximum amount given out ranged from £32,000 in Brent to £145 in Wakefield, based on the 17 councils that responded.
The lowest amounts dished out ranged from just 54p in Wigan to £375 in Ealing.
DHP is a little-known pot of money handed out by councils to cover shortfalls in rent and help with deposits.
The financial support is available to those getting benefits for housing in England and Wales.
Anyone claiming Housing Benefit or the Housing Element of Universal Credit could be eligible if they are struggling with rent costs.
Each local authority dishes out DHP cash to those in need on a case-by-case basis, and the amounts available can vary.
Those in the most difficulty are likely to get a higher amount but the payments available also depend on how much cash the council has to give out and how many people have applied.
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Brent Council, which gave out the largest single amount was unable to share the reasons behind the award due to data protection rules.
In at least four other areas the largest amount given out through the fund over the past year was more than £10,000, according to responses to Freedom of Information requests, including Ealing, Manchester, Coventry and Birmingham.
In Manchester, a tenant living in a single room of shared accommodation and paying £196.58 per week was awarded £12,537 to help with arrears.
The amount was considered exceptional by the council and was to help a vulnerable resident stay in a supported placement.
The council said in its FOI response: “The resident lives in a supported placement and receives a high degree of support from their landlord.
“The award was made to clear arrears in order to prevent the placement ending, which would have resulted in a vulnerable tenant having to move home.
“It was a very unusual situation and we do not anticipate making a similar award again in the future.”
“Imminent eviction”
In Coventry, the largest DHP payment was £10,651 to a family to avoid becoming homeless.
The local authority said: “In this case, eviction was imminent and poor circumstances were compounded due to Covid.
“If the arrears were left unpaid, the family would become homeless and as a family unit would require a four bedroom property.
“As there were two young non-dependents in the household, it is likely that due to housing availability they would have been separated as a family to be re-housed.”
DHP can be paid as a lump sum or as ongoing payments to help cover a rent shortfall – you don’t have to pay it back.
In Leeds an ongoing award totalling £6,847 was made to a family of five living in a four-bedroom home to cover the shortfall between Universal Credit Housing Element and the rent charged by the landlord.
Leeds council said the maximum payments of £136.93 per week were permitted under it’s policy of supporting foster parents.
The smallest amount given out was 54p to a resident in Wigan and a payment worth under £10 was the lowest award made in another eight areas.
There’s no limit how many times you can apply for the help, so more than one payment could have been made to the same individual or family.
The amount of cash each area has to give out through DHP depends on its size and the need in the area.
But the total pot of cash for helping people in a housing emergency has been slashed by millions of pounds for the year ahead.
Total funding for the scheme from central government last year was £140million.
From April that will drop to £100million for the year ahead – £40m less.
The cut comes as millions face a cost of living crisis and could not have come at a worse time housing charity Shelter told The Sun.
Around 425,000 households owe money to their landlords, Citizens Advice says.
Rents are among many costs that have soared in recent months, with the average monthly bill soaring from £972 a year ago to £1,060 a month.
Who is eligible for Discretionary Housing Payment and when can I get it?
You may be able to get Discretionary Housing Payment if you are entitled to Housing Benefit, or the housing element of Universal Credit.
There’s a similar scheme of the same name in Scotland which can also provide support for housing costs, but with different eligibility criteria.
If the benefits you’re currently getting still don’t cover the cost of your housing then you may be eligible.
The payment is discretionary, which means that the financial support given out is decided on case by case basis.
DHP may be given in the following circumstances, but there are other situations where you could get it too.
- You’ve been affected by the benefit cap, bedroom tax or local housing allowance rate changes
- Your housing benefit is not enough to cover your rent
- You’re moving home and need a rent deposit or rent advance, or help with moving costs
If your benefits are reduced because of an overpayment and that means you can’t pay all or some of your rent, unfortunately you won’t be able to get DHP.
There is other help available though, including other funds from local councils.
You also can’t get DHP to cover council tax or service charges.
How can I claim Discretionary Housing Payment?
You need to apply through your local council for Discretionary Housing Payment.
You can find your local council by searching your postcode here.
Benefits charity Turn2Us previously shared the following tip for finding your local council’s DHP support too, as it can sometimes be hard to find.
Search online using the name of your local council and Discretionary Housing Payment in quote marks, for instance: “Birmingham City Council Discretionary Housing Payment”
Some councils may also call DHP by a different name, for example Islington Council has a Resident Support Scheme.
How you apply can vary, for example it may be a form to fill in online or on paper, and your local council should provide instructions.
You’ll need to give information about your circumstances, such as your income and benefits you get, along with proof of this through payslips and evidence of your rent costs.
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