Discretionary Housing Payments need to work for disabled people Papworth Trust believes the under-occupation penalty or ‘bedroom tax’ is negatively affecting disabled people. The Government gave Discretionary Housing Payments (DHPs) money to local councils so that they could help people struggling to pay their rent. But we have found that these emergency housing payments are not reaching the right people. The Government asked councils to prioritise DHPs for disabled people who live in adapted homes or who have long term conditions which mean they may not be able to share a bedroom1. However, our Freedom of Information (FOI) requests2 show that DHPs are not working in the way that the Government meant them to. In reality, disabled people are less likely to be awarded a payment than non-disabled people. We have found that: Over three quarters of councils are ignoring the Government on emergency housing payments by counting Disability Living Allowance (DLA) as income3. More non-disabled people are receiving the payments than disabled people 4. A third of disabled people are refused a DHP5. Papworth Trust is calling for: The Government to immediately ban councils from taking DLA into account when assessing income, as they have already done for other means tested benefits such as Housing Benefit. People living in adapted properties to be exempt so that they will not be affected by ‘bedroom tax’. The Government to ring fence some DHP funding for disabled people. Annaliese and Kevin have lived in their adapted flat for 8 years. They use the spare bedroom to store medical equipment and, with the possibility that their health will deteriorate, for an overnight carer. There are no one bedroom adapted properties in their area, where they have lots of help and support. They have been rejected for a DHP twice because their DLA has been counted as income. They are now paying £137 per month extra because they under-occupy their home. Annaliese says, “I’m going to have to find over £100 a month to pay for the bedroom tax. Food is going up in price; I’m only buying the things we need, and extras when they’re on special offer.” © Papworth Trust, February 2014 www.papworth.org.uk/bedroomtax Ban councils from counting DLA when assessing income [Councils may] “disregard income from disability related benefits as they are intended to be used to help pay for the extra costs of having a disability.”6 Department for Work and Pensions, Discretionary Housing Payments Guidance Manual 2013 Our research found that over three quarters of Local Authorities include DLA when looking at household income as part of the DHP assessment process3. We believe this is causing many disabled people to be excluded from DHPs because they then appear to have a higher income than non-disabled people. DLA is not intended to cover housing costs – it is a benefit that pays for the extra costs of having a disability. The Government recognises this in its DHP Guidance Manual, saying that councils may “disregard income from disability related benefits as they are intended to be used to help pay for the extra costs of having a disability.”6 The Government excludes the use of DLA in the calculation of other means tested benefits such as Housing Benefit, Income Support and Jobseeker’s Allowance, and we believe this principle should be the same for DHPs. Almost 9 in 10 disabled people refused a DHP said they have cut back on essentials like food and drink or household bills7. Exempt adapted properties from ‘bedroom tax’ “One of the fundamental objectives of providing Discretionary Housing Payments is to make sure that where there are significant adaptations in homes for disabled people, there will be Discretionary Housing Payments for those people.”8 Lord Freud, 28 January 2014 “These new payments can be for the long term, because some situations will not change, and if someone lives in a house that has been substantially adapted, they will need to keep it.”9 Esther McVey MP, 27 February 2013 The average length of time that DHPs are being allocated for is less than 5 months, and the maximum length of time they can be given for is a year. If one aim of DHPs © Papworth Trust, February 2014 www.papworth.org.uk/bedroomtax is long term support for disabled people living in adapted accommodation, there is a simpler solution. Exempting people living in adapted properties from ‘bedroom tax’ would save tenants the anxiety of reapplying for emergency housing payments and save local councils the cost of regularly reassessing applications from people whose situations are unlikely to change. 8 in 10 disabled people who had been refused a DHP were living in an adapted property.10 The Government should ring fence a DHP funding pot for disabled people DHPs should be given with priority when “the claimant or someone in their household has a disability which requires them to have a larger property than would usually be the case for the size of their household due to, for example, a medical condition that might mean they are unable to share a bedroom.”11 Department for Work and Pensions, Discretionary Housing Payments Guidance Manual 2013 Disabled people are less likely to be successful when applying for a DHP than nondisabled people. Our research shows that while 67% of non-disabled people applying for a DHP are successful, this falls to 59% for disabled people4. We believe that councils are prioritising applicants by financial need, rather than considering how their disability or adaptations may impact on their ability to move or cover their rent. We urge the Government to ring fence funding provided specifically for people living in adapted homes or with long term conditions. This would ensure that Councils can prioritise households with adaptions and disability, not just cases with financial need. Local Authorities should record if applicants have a disability “I am also issuing guidance to local authorities emphasising that discretionary housing payments remain available for other priority groups including the needs of people whose homes have had significant disability adaptations and those with long-term medical conditions that create difficulties in sharing a bedroom.” Iain Duncan Smith MP, 12 March 201412 In our first DHP report in July 2013, almost 2 thirds of councils could tell us whether the DHP applicants had a disability or not. © Papworth Trust, February 2014 www.papworth.org.uk/bedroomtax Our latest survey covered 222 Councils across England, Scotland and Wales. Of these, less than a quarter could tell us whether the applicants had a disability or not. If the Government’s intention is for disabled people to be prioritised, as Iain Duncan Smith states, it is important to be able to check if this is happening. Disabled people as a group are already faced with multiple Government cuts 13. We believe it should be mandatory for Councils to record whether someone is disabled or not when they are assessing DHP applications. The Government and the taxpayer should know whether this funding is being used for the people it was intended for. For more information, please contact: Nicola Whiteman, Policy and Involvement Manager E: nicola.whiteman@papworth.org.uk T: 01480 357205 Footnotes: 1 Department for Work and Pensions, Discretionary Housing Payments Guidance Manual including Local Authority Good Practice Guide, April 2013. 2. Papworth Trust submitted Freedom of Information (FOI) requests to District Councils across the UK and received 222 responses throughout October and November 2013. 3. Papworth Trust submitted 222 Freedom of Information (FOI) requests to District Councils. The responses show that 176 out of 222 councils say that they do include DLA as income. 4. Papworth Trust submitted 222 FOI requests to District Councils. The responses show that 67% (10,656 out of 15,938) of applicants from non-disabled people are successful, compared to 59% (3,670 out of 6,200) of applicants from disabled people. 5. Papworth Trust submitted 222 FOI requests to District Councils. The responses show that 32.9% of applicants being refused are disabled people (2,356 disabled people rejected out of 6,114 disabled people applied). 6 Department for Work and Pensions, Discretionary Housing Payments Guidance Manual including Local Authority Good Practice Guide, April 2013. 7 Papworth Trust surveyed 373 people online between 29 April 2013 and 4 February 2014. 8 Hansard, Lord Freud, 28 January 2014. 9 Hansard, Esther McVey MP, 27 February 2013. 10 Papworth Trust surveyed 373 people online between 29 April 2013 and 4 February 2014. 11 Department for Work and Pensions, Discretionary Housing Payments Guidance Manual including Local Authority Good Practice Guide, April 2013. 12 Hansard, Ian Duncan Smith, 12 March 2014. 13 Demos, Destination Unknown, 2013. © Papworth Trust, February 2014 www.papworth.org.uk/bedroomtax