North Yorkshire Discretionary Housing Payment policy

Policy Statement

1. North Yorkshire Council’s objective is to treat every application for a Discretionary Housing Payment on its individual merits.

Introduction

2. Discretionary Housing Payments were introduced in July 2001 and each Local Authority is responsible for administration of the Discretionary Housing Payment scheme.  
3. A Discretionary Housing Payment may be awarded where the Local Authority determines that a Housing Benefit or Universal Credit claimant (who receives the Housing Element in respect of a rent liability) requires further financial help towards their housing costs.
4. A Discretionary Housing Payment can be awarded to help cover:
   1. Shortfalls between the eligible rent liability and payment of Housing Benefit or payment of Universal Credit (Housing Element)
   2. One-off Discretionary Housing Payment award to help towards removal costs
5. The council may assist tenants with rent deposits and rent in advance in exceptional circumstances through either this policy or other mechanisms as appropriate subject to funds being available. It should be noted that decisions in this regard will be made on an exceptional basis and any payments made may be repayable.
6. Effective operation of the Discretionary Housing Payment scheme contributes to the council’s objectives. The overall aim is to provide help, within government funding levels, to vulnerable tenants to enable them to maintain stable and affordable accommodation.

General Principles and Regulations

7. The Discretionary Financial Assistance Regulations 2001 (SI 2001/1167) ensures the Discretionary Housing Payment scheme covers the introduction of Universal Credit. Guidance has also been issued by the Department for Work and Pensions and, given that funding is granted by Government, the council will look to implement its policy in line with guidance.

Purpose of this policy

8. The purpose of this policy is to specify how North Yorkshire Council will operate the scheme and to indicate some of the factors that will be considered when deciding if a Discretionary Housing Payment can be awarded. Each case will be treated strictly on its own merits and all claimants will be treated equally and fairly when the scheme is administered. 
9. The council is committed to working with local support agencies, social landlords and internal Housing support teams to maximise entitlement to the Discretionary Housing Payment scheme. The policy operates in line with the council’s anti-poverty strategy and is committed to the equitable operation of a Discretionary Housing Payment scheme. 

Statement of objectives

10. The council will consider making a Discretionary Housing Payment to all claimants who meet the qualifying criteria as specified in this policy. In administering the scheme, the council will give consideration to the guidance produced by the Department for Work and Pensions. The council will treat all applications on their individual merits and will seek through the operation of this policy to: 

1. Alleviate poverty
2. Support vulnerable young people in the transition to adult life
3. Help and encourage residents to sustain and maintain housing
4. Prevent and reduce homelessness
5. Keep families together
6. Support the vulnerable in the local community to maintain their health and wellbeing
7. Support disabled people living in significantly adapted accommodation – including any adaptations made for disabled children; and foster carers, whose housing benefit is reduced because of a bedroom being used by, or kept free for, foster children
8. Help claimants through personal crisis and difficult events
9. Assist persons within the area who qualify for Housing Benefit or Universal Credit Housing Element to move or obtain premises more suitable to their requirements
10. Support people affected by welfare reform changes
11. Help households move to more appropriately sized and affordable accommodation

The council considers that the Discretionary Housing Payment scheme should be seen as short-term financial assistance.  It is not and should not be considered as a way around any current or future entitlement restrictions set out within the Housing Benefit or Universal Credit Legislation.

Main Features of the Discretionary Housing Payment scheme

11. The main feature of the scheme is that:
    1. it is discretionary
    2. a claimant may be entitled if the criteria is satisfied
    3. The amount that can be paid out by the Local Authority in any financial year is cashlimited by the Secretary of State for work and pensions
12. Discretionary Housing Payments are not a payment of Housing Benefit or Universal Credit. However, the claimant must have an entitlement to Housing Benefit or Universal Credit (Housing Element) for the weeks that a Discretionary Housing Payment is being considered for and there is a need for financial assistance.

Amounts that cannot be covered by a Discretionary Housing Payment award

13. The elements of a claimant’s rental liability or shortfall in Housing Benefit or Universal Credit (Housing Element) that cannot be met by a Discretionary Housing Payment are: 

• Ineligible charges: service charges that are not eligible for Housing Benefit or Universal Credit (Housing Element) cannot be covered by a Discretionary Housing Payment
• Sanctions and reductions in benefit
• Suspended payments of Housing Benefit or Universal Credit
• Shortfalls caused by Housing Benefit or Universal Credit overpayment recovery
• Universal Credit reclaims of payments on account
• Any amount of Council Tax Reduction

What is a shortfall?

14. A shortfall between the rental liability and payment of Housing Benefit or payment of Universal Credit (Housing element) can occur due to:

• The rent determined by the Rent Officer or the Local Housing Allowance being lower than the claimant’s eligible rental liability
• A social sector occupation charge being applied due to the size of the claimant’s household
• A reduction in Local Housing Allowance rates for under 35 year olds
• The excess income taper being applied within Housing Benefit
• The excess income taper being applied within for Universal Credit
• A non-dependant deduction being made
• The Benefit Cap has been applied
• The Family Premium being removed (From April 2016)
• The limitation of dependant’s additions being applied (from April 2017)
• Where the claimant can demonstrate that they are unable to meet the housing costs from their available income

How to Claim a Discretionary Housing Payment

15. A claim for a Discretionary Housing Payment must be made via the council’s website or a claim form from the council where this is available.  Verification of information will be undertaken and evidence may need to be provided in relation to the claimant’s income and expenditure. 

Commencement of a Discretionary Housing Payment Award

16. The start date of an award is determined by the council and can be either: 

• The Monday following the date that the claim for a Discretionary Housing Payment is received by the council
• The date on which entitlement to Housing Benefit or Universal Credit (housing element) commenced
• The date on which the need arose

Backdating

17. When deciding whether to backdate a Discretionary Housing Payment, each application will be considered on its own merits. 
18. The regulations require that a Discretionary Housing Payment can only be considered for a period where the linked Housing Benefit or relevant award of Universal Credit (Housing Element) is payable. This is of particular relevance to requests for a period of backdated Discretionary Housing Payment, since backdating cannot cover arrears accrued while not in receipt of these benefits. 

Period of a Discretionary Housing Payment Award

19. In all cases, the council will decide the length of time for which a Discretionary Housing Payment will be awarded on the basis of the evidence supplied and the circumstances of the claim. 

• The minimum period for which the council will award a Discretionary Housing Payment is one week
• The council will usually award a Discretionary Housing Payment for not less than 3 months or 13 weeks where it is to meet a shortfall
• The council will not normally award a Discretionary Housing Payment for a period exceeding 12 months
• Where a claimant is disabled, living in specially adapted accommodation the council recognise that it may be appropriate to make long-term Discretionary Housing Payment awards, exceeding 12 months
• The council is mindful that it may be appropriate to make longer term Discretionary Housing Payment awards in exceptional circumstances

Award a Discretionary Housing Payment

20. In deciding whether to award a Discretionary Housing Payment, the council will consider the following:

• The shortfall between Housing Benefit or Universal Credit( Housing Element) and the eligible rent liability
• Any steps taken by the claimant to reduce their rental liability
• The financial and medical circumstances (including ill health and disabilities) of the claimant, their partner, any dependants, and any other occupants of the claimant’s home
• The income and the essential expenditure of the claimant, their partner, any dependants, or any other occupants of the claimant’s home
• Any savings or capital that might be held by the claimant and/or partner
• The level of indebtedness of the claimant and/or partner
• The nature of the claimant’s and/or partner’s circumstances
• The amount already allocated and committed up to the cash limit set by the Secretary of State at the time of the application
• Any other special circumstances brought to the attention of the council
• Any steps already taken by the claimant to improve their financial situation
• Any previous Discretionary Housing Payment awards that may have been made

21. The council will decide how much to award based on the individual circumstances. This may be an amount below the difference between the rent liability and the Housing Benefit or Universal Credit (Housing Element). 
22. An award of a Discretionary Housing Payment does not guarantee that a further award will be made at a later date even if the claimant’s circumstances have not changed.

Change in Circumstance

23. The claimant has a duty to notify the council of any change in their circumstances. They must report the change as soon as possible and not later than one month from the change occurring.
24. The council may revise a Discretionary Housing Payment award to take account of a change in circumstances at any time whether to the advantage or disadvantage of the claimant.

Payment of Discretionary Housing Payment

25. The council will decide the most appropriate person to receive a Discretionary Housing Payment based upon the circumstances of each case. This could include paying:
    • The claimant
    • Their partner (if resident in the household)
    • An appointee
    • Their landlord (or an agent of the landlord)
    • Any third party to whom it might be most appropriate to make payment
26. The council will pay an award of Discretionary Housing Payment by the most appropriate means available in each case. This could include payment by but is not restricted to:
    • Direct to bank
    • Crediting the claimant’s rent account
27. Where the Discretionary Housing Payment award is made on an on-going basis, the payment frequency will normally be aligned to the Housing Benefit or the Universal Credit payment cycle.

Notification of the Discretionary Housing Payment award

28. The council will normally inform the claimant in writing of the outcome of their application within 28 days of receipt of all information. Where the application is unsuccessful, the council will provide reasons why this decision was made and explain the right of review. 
29. Where the application is successful, the council will notify the claimant of the amount of Discretionary Housing Payment to be awarded and how payment will be made.

The Right to seek a review

30. Discretionary Housing Payment decisions are not Housing Benefit or Universal Credit decisions and are therefore not subject to the statutory dispute mechanism. However, all councils are expected to set up an appropriate review process. 
31. The council will operate the following policy for dealing with requests to review a refusal of a Discretionary Housing Payment award, the decision to award a reduced amount of Discretionary Housing Payment, the decision not to backdate a Discretionary Housing Payment or a decision that there has been an overpayment of a Discretionary Housing Payment:
    1. A claimant (or their appointee or agent) who disagrees with a Discretionary Housing Payment decision may dispute the decision. A dispute must be made in writing to the council within one calendar month of the written Discretionary Housing Payment decision being issued; 
    2. Upon receipt of a dispute, the Discretionary Housing Payment request will be re-considered by an officer who was not involved in the first decision and notify the claimant of the outcome in writing;
    3. As part of the dispute process the council may feel it appropriate to offer the claimant an explanation of the Discretionary Housing Payment decision by telephone, at interview, or in writing, in order to seek to resolve the matter. Where agreement cannot be reached a re-consideration will be carried out;
    4. This review will be carried out by the council and the decision will be final with no other right of appeal;
    5. Where the claimant is still aggrieved, the decision may only be challenged via the judicial review process or by complaint to the Local Government Ombudsman.

Discretionary Housing Payment overpayment recovery

32. The council will seek to recover Discretionary Housing Payment’s found to be overpaid.   
33. Recovery will usually involve issuing an invoice to the claimant or the person to whom the award was paid.  
34. Under no circumstances will recovery be made from any amounts of Housing Benefit or Universal Credit due to the claimant (except if the claimant requests this method of recovery specifically in writing).

Publicity

35. The council will publicise the scheme and will work with all interested parties to achieve this. A copy of this policy will be made available for inspection and will be posted on the council’s website.

Fraud

36. The council is committed to identifying and subsequently investigating suspected fraudulent claims to Housing Benefit and Discretionary Housing Payment.  Individuals who falsely declare their circumstances in order to claim Discretionary Housing Payment will have committed a criminal offence, which may lead to criminal proceedings being instigated under the Fraud Act 2006.

Reporting

37. The council will report the number of Discretionary Housing Payment applications received, decisions made and the Discretionary Housing Payment funding  available to the Department for Work and Pensions as required by them.

Policy Review and consistency

38. This policy will be reviewed annually, or sooner if appropriate, to take account of operational adjustments and or changes to legislation. The council is keen to ensure that all decisions are made in a consistent manner and procedures will be developed accordingly to ensure that all applications are treated in a fair an appropriate manner directly in line with this policy.