Agenda Item No____10________
DISCRETIONARY HOUSING PAYMENTS POLICY
Summary:
The purpose of the report is for Members to review the
Discretionary Housing Payments Policy in the context of
the Government changes to benefits that reduce
entitlement and so increase demand for additional
discretionary help through this scheme. The
Government has allocated additional funding to this
scheme in recognition of this.
Conclusions:
The revised Policy recognises the changes in both
funding and those people affected by the changes in
benefits.
Reasons for
Recommendations
Members are asked to agree the recommendation
because the Council needs to adopt a consistent
approach to assessing and awarding Discretionary
Housing Payments and to ensure the effective use of
limited resources.
Recommendations:
Members are asked to approve the revised
Discretionary Housing Payments Policy
Cabinet Member(s)
Ward(s) affected All
Contact Officer, telephone number and email:
Louise Wolsey Tel 01263 516081 louise.wolsey@north-norfolk.gov.uk
1.
Introduction
1.1
The Discretionary Housing Payment (DHP) scheme was introduced in 2001.
It enables the Council to pay, at its discretion extra money towards housing
costs to top up Housing Benefit (HB) and previously Council Tax Benefit
(CTB).
1.2
The Government provides funding for the scheme up to a ceiling but local
authorities can spend more than this from their own resources. NNDC
expenditure has not gone above the ceiling.
1.3
Payments are made in line with the Policy. Payments address anomalies
within the benefit system and assist where the standard benefit scheme
proves harsh for people and they are unable to meet their housing costs
Discretionary Housing Payments (DHP’s) are not intended to be long term ongoing payments; they are awarded on a short term basis to provide people
with the opportunity to take action to improve their circumstances. However,
some payments may be long term as the intention is that some customers will
not be expected to move.
1.4
In practice the majority of payments have historically been made to private
tenants whose Housing Benefit is too low for them to be able to pay their full
rent and for rent deposits and rent in advance, where it is appropriate to do so
i.e. to a help an existing customer move to more affordable accommodation.
2.
Background
2.1
The legislation that governs DHPs is covered by the Discretionary Financial
Assistance Regulations 2001, now amended to ensure the scheme covers
the introduction of Universal Credit and the abolition of CTB.
2.2
The Department of Works and Pensions (DWP) has provided authorities with
a guidance manual and good practice guide offering advice to Local
Authorities on how DHP’s can be used to provide support to customers
affected by some of the key welfare reforms introduced from April 2013,
including;
• Introduction of size criteria in the social rented sector
• Reductions in local housing allowance
• Introduction of the benefit cap – when it is phased in across the next
few months
The revised Policy takes account of this guidance with specific mention to
customers adversely affected by the welfare reforms.
Appendix 1 - The Discretionary Housing Payment Policy
2.3
When considering whether to make an award there are a number of
objectives that need to be considered
• Alleviate poverty
•
Encourage and sustain people in employment
•
Tenancy sustainment and homelessness prevention
•
Safeguarding residents in their own home
•
Helping those who are trying to help themselves
•
Keeping families together
•
Supporting vulnerable or the elderly in the area
•
Helping customers through personal and difficult events
•
Supporting young people in the transition to adult life
•
To assist customers affected by the Welfare reforms
2.4
Authorities will not be able to use DHP’s to help with council tax liabilities after
April 2013.
3
Conclusion
The Council needs to adopt a consistent approach to assessing and awarding
DHPs and to ensure the effective use of limited resources.
4
Implications and Risks
It is anticipated that there will be an initial transitional period where there will
be high demand for DHPs. It is envisaged that any customers will apply for
and be given an initial short term award of DHP to give them time to find an
alternative solution to the shortfall in rent caused by the reforms. However, in
some cases consideration will have to be given to making longer term DHP
awards. e.g. where it is unreasonable to expect the customer to move as the
property has been significantly adapted. Customers who apply for repeat
awards may l find DHP top up gradually being reduced and stopped if they do
not find an alternative solution to their shortfall in rent. The panel considering
applications for DHP’s is composed of Housing Benefit Officers and Housing
Officers.
5
Financial Implications and Risks
Central government funding towards DHP’s has been increased from £20m
per annum up to £165m for 2013/14 and £135m for 2014/15. The increased
funding is to assist benefit recipients through the transitional period of the
reforms.
The table below illustrates the current national funding position.
2012/13
2013/14
2014/15
£m
£m
£m
Baseline Funding
20
20
20
LHA reforms
40
40
40
30
30
(up to) 75
(up to) 45
165
135
Social Size Criteria
Benefit Cap
Total
60
Local authorities have a large degree of discretion but must be aware of the
purpose of the increased funding when considering applications for DHPs.
NNDC funding for 2013/14 is £112,312 compared to £52,277 for 2012/13.
6
Sustainability
No implications
7
Equality and Diversity
An Equality Impact Assessment has been undertaken. (Appendix 2)
8
Section 17 Crime and Disorder considerations
No implications