1.Background to Discretionary Housing Payments (DHPs)
In July 2001, a new scheme was introduced granting all Local Authorities powers to make discretionary payments in addition to Housing and Council Tax Benefits Benefits.
The scope of the scheme:
- covering shortfalls between rental liability and payment of Housing Benefit
- covering shortfalls between Council Tax liability and entitlement to Council Tax Benefit
The main features of the scheme are that:
- schemes are discretionary; a claimant does not have a statutory right to a payment
- the amount that can be paid out by an Authority in any financial year is cash-limited by the Secretary of State.
- the administration of the scheme is for the Benefits Service to determine
DHP's are not a payment of Housing Benefit or Council Tax Benefit. However, the minimum amount of HB / CTB must be in payment in the benefit week that a DHP is awarded for.
Wigan Council Guidance
2.Purpose
The purpose of this guidance is to explain how Wigan Benefits Service will operate the scheme and to highlight some of the factors that will be considered when deciding to award a DHP. Each case will be decided strictly on its merits and all customers will be treated equally and fairly. The Benefits Service is committed to working with the local voluntary sector and other interested parties to maximise entitlement to all available state benefits and this will be reflected in the administration of the DHP scheme.
Links to homelessness and worklessness are major considerations when making decisions relating to payments. Prevention is a major priority and links to Housing Strategy policies.
Demand for social rented and privately rented homes in the borough has also increased in recent years, with more people applying for Council accomodation and less properties becoming available to rent each year. Landlords are under financial pressures to retain properties and have their own current economic issues, so it is vital to engage with them to give some confidence to let properties to people in receipt of Benefit.
3.Statement of objectives
The Benefits Service will consider making a payment of a DHP to claimants who meet the criteria specified in this guidance. The Benefits Service will treat all applications on their individual merits, and will seek by using this guidance to help:
- alleviate poverty
- encourage and sustain residents in employment;
- safeguard residents in their homes
- help those who are trying to help themselves
- keep families together
- support the vulnerable in the local community
- help claimants through personal crises and difficult events
4.Claiming a DHP
A claim for a DHP must be made in writing and signed by the claimant. A letter or signed statement made at the Benefit Offices will be deemed as sufficient providing the following conditions are met.
On request or in appropriate circumstances, the Benefits Service will issue the claimant with a special DHP application form. The claimant will be required to return the form to the Benefits Service and will be encouraged to include any relevant supporting evidence.
Private Interview facilities and appointments will be available for all customers wishing to make a claim for DHP and where appropriate a welfare visitor will call to assist applicants.
The Benefits Service may request any (reasonable) evidence in support of an application for a DHP.The claimant will be asked to provide the evidence within one month of such a request although this will be extended in appropriate circumstances.
5.Period of award
In all cases, the Benefits Service will decide the length of time for which a DHP will be awarded on the basis of the evidence supplied and the facts known.
The start date of an award will normally be:
- the Monday after the written claim for a DHP is received by the Benefits Service; and
- The Benefits Service cannot award a DHP for any period outside an existing HB/CTB benefit period granted under the HB/CTB statutory scheme.
The Benefits Service will usually award a DHP for not less than 3 months.
The Benefits Service will consider any reasonable request for backdating an award of a DHP but such consideration will usually be limited to the current financial year.
6.Awarding a DHP
In deciding whether to award a DHP, the Benefits Service will take into account:
- the shortfall between Housing and Council Tax Benefit and the liability
- any steps taken by the claimant to reduce their rental or Council Tax liability
- the financial and medical circumstances of the claimant, their partner and any dependants or other occupants of the claimant's home.
- the income and expenditure of the claimant, their partner and any dependants or other occupants in the claimant's home
- any savings or capital that might be held by the claimant or their family
- the level of debt of the claimant and if appropriate their family
- the exceptional nature of the claimant and their family's circumstances
- the amount available in the DHP budget at the time of the application
- the possible impact on the Council of not making such an award, e.g. the pressure on priority homeless accommodation
- any other special circumstances brought to the attention of the Benefits Service.
The Benefits Service will decide how much to award based on all of the circumstances. This may be an amount below the difference between the liability and the payment of Housing Benefit and / or Council Tax Benefit. An award of a DHP does not guarantee that a further award will be made at a later date even if the claimant's circumstances have not changed.
The Benefits Service considers that the DHP scheme should be seen as a short term emergency fund. It is not and should not be considered as a way around any current or future entitlement restrictions set out within the Housing and Council Tax Benefit legislation.
7.Changes of Circumstances
The Benefits Service may need to revise an award of a DHP where the claimant's circumstances have changed.
8.Method of Payment
The Benefits Service will decide the most appropriate person to pay based upon the circumstances of each case. This could include paying:
- the claimant
- their partner
- an appointee
- their landlord (or an agent of the landlord); or
- any third party to whom it might be most appropriate to make payment.
The Benefits Service will pay an award of DHP by the most appropriate means available in each case. This could include payment:
- by cheque or electronic transfer (e.g. BACS)
- by crediting the claimant's Council Tax account
Payment frequency will normally be made in line with current Housing Benefit and / or Council Tax Benefit arrangements.
9.Notification
The Benefits Service will inform claimants of the outcome of their application within 14 days of receipt. Where the application is unsuccessful, the Benefits Service will set out the reasons why the decision was made and explain the right of review.
Where the application is successful, the Benefits Service will advise:
- the weekly amount of DHP awarded
- whether it is paid in advance or in arrears
- the period of the award
- how, when and to whom the award will be paid
- the requirement to report a change in circumstances
10.Review of decisions
DHP's are not payments of Housing or Council Tax Benefits and are therefore not subject to the statutory appeals process. All Councils are expected to set up an appropriate review process.
The Benefits Service will operate in the following way when dealing with appeals about a refusal to award a DHP, a decision to award a reduced amount of DHP, a decision not to backdate a DHP or a decision that there has been an overpayment of a DHP.
A claimant (or their appointee or agent) who disagrees with a DHP decision may dispute the decision. A request for a review shall be made in writing to the Benefits Service within one calendar month of the written decision about the DHP being issued. Where appropriate, officers from the Benefits Service will explain the DHP decision to the claimant by telephone, at interview or in writing and will seek to resolve the matter.
Where the disagreement can’t be resolved the case will be reviewed by an officer who was not part of the original decision making process. All the evidence will be reviewed and a decision will be made within 14 days of referral or as soon as practicable.
Where the decision is not revised the claimant will be notified in writing, setting out the reasons for the decision .
Where the claimant is still not satisfied, they will be entitled to a further review, provided this is delivered in writing within one calendar month of the date on the decision letter sent by the reviewing officer. In these cases the Councils Independent DHP Review Panel will conduct the review. The Review Panel will have the right to access all information held by the Benefits Service and to interview Officers involved in the decision making process. The decision made by the Review Panel will be notified in writing to both the Benefits Service and to the claimant. Their decision will be final and binding and may only be challenged via the judicial review process or by complaint to the Local Government Ombudsman.
11.Overpayments
The Benefits Service can decide whether it is appropriate to recover overpayments of DHP. If recovery action is decided we will issue an invoice and letter detailing the circumstances of the overpayment to the claimant or the person to whom the award was made.
Recovery will not usually be attempted for any overpayments that occur as the result of a Local Authority error unless the person who received the payment could reasonably have known they were being overpaid or they contributed to the overpayment.
Recovery will not normally be made from any amounts of Housing and / or Council Tax Benefit due to the person to whom payment was made unless the claimant requests this method of recovery in writing. The notification letter advising of an overpayment will include notes of rights and duties similar to those included in benefit notification letters.
12.Publicity
The Benefits Service will work with all interested publicise the scheme. A copy of this policy statement and accompanying literature will be made available in the Benefits Office and posted on the Council’s Internet site.
13.Fraud
Wigan Council is committed to fighting fraud in all its forms. A claimant who tries to fraudulently claim a DHP by falsely declaring their circumstances, providing a false statement or evidence in support of their application, may have committed an offence under the Theft Act 1968. Where the Benefits Service suspects that such a fraud may have occurred, the matter will be investigated as appropriate and this may lead to criminal proceedings.
