A Discretionary Housing Payment (DHP) is one of the few tools available to bridge the gap when housing benefit or Universal Credit housing costs do not cover your full rent. Councils have limited budgets for DHPs and they are not guaranteed — but for people who apply well, with a strong case, they provide crucial short-term relief.
What Is a DHP and When Does It Apply?
| Common DHP situation | What happened |
|---|---|
| Rent above LHA rate | LHA caps housing benefit below actual rent |
| Benefit Cap reduction | Total benefit cap reduced housing element |
| Bedroom tax / spare room subsidy | Social housing deduction reduced payment |
| Moving costs | Need help with deposit for new home |
| Rent arrears (short-term hardship) | Facing eviction due to temporary gap |
| Disabled person in adapted home | Unable to move to cheaper property due to disability adaptations |
| Former tenant leaving DV situation | Needs help with new tenancy costs |
DHPs cannot be used for:
- Service charges (only the rent element)
- Gas/ electricity / council tax
- Arrears that are not rent-related
- Mortgage payments
Who Can Apply?
You must be:
- Receiving Housing Benefit, OR
- Receiving Universal Credit with a housing cost element
You must have a genuine shortfall between your rent and the housing support you receive.
There is no income or savings test for DHPs — your eligibility for the underlying benefit is what matters.
How to Apply
Applications go to your local council’s housing benefits team — not the DWP, not HMRC. Each council has its own application form and process.
Steps:
- Find your local council’s housing benefits or DHP page (search your council name + “Discretionary Housing Payment”)
- Download or complete the application form online
- Include supporting evidence
- Submit — and follow up if you do not hear back
What Councils Consider
Councils weigh the following when deciding a DHP application:
| Factor | What helps your application |
|---|---|
| Reason for shortfall | Structural shortfall (LHA rate, benefit cap) stronger than voluntary rent agreement |
| Likelihood of resolving shortfall | Can you eventually find cheaper housing? Are steps being taken? |
| Financial circumstances | Full income and expenditure shown; no obvious ability to meet shortfall from other income or savings |
| Risk of homelessness | Applications with genuine eviction risk are given priority |
| Disability or vulnerable circumstances | Disabled person unable to move; adapted property; child’s special needs |
| Domestic violence | Escaping DV, needing housing support |
| Previous DHP history | Not a bar to claiming again, but councils expect progress |
The Application Form: What to Include
A good DHP application tells a complete story:
Section 1: Your Income and Expenditure
List all income (UC, Child Benefit, wages, maintenance payments) and all outgoings (rent, utilities, food, transport, care costs). Leave nothing out — if your expenditure exceeds income, that demonstrates genuine need.
Section 2: Why You Need the DHP
Explain specifically what caused the shortfall:
- “My rent is £800/month but my LHA rate for [BRMA] is £600. I have been unable to find alternative accommodation within the LHA rate because [specific reasons: no suitable cheaper properties, child’s school proximity, disability-related need to stay in area].”
Section 3: What You Are Doing to Resolve It
- “I am on the housing waiting list — reference [X]”
- “I am actively looking at cheaper accommodation but have not found suitable options yet”
- “I am exploring whether my landlord will reduce the rent”
Councils want to see that you are not expecting the DHP to be permanent.
Section 4: Supporting Evidence
- Tenancy agreement (showing rent amount)
- Recent rent statement (showing arrears if any)
- UC or Housing Benefit award letter (showing housing element)
- Bank statements (last 3 months)
- Evidence of disability or health condition (GP letter) if relevant
- Evidence that cheaper alternatives are not available or suitable
DHP Application Tips
- Apply before you fall into arrears. You do not have to wait until you are in debt — apply as soon as you identify a shortfall.
- Be detailed and specific. Vague applications are refused. Explain exactly why you cannot close the gap yourself.
- Link to vulnerability. If you have children, a disability, a health condition, or are escaping domestic violence, explain this — councils are required to take vulnerability into account.
- Request a review if refused. Councils must have a review process. If refused, ask for a review with additional evidence — similar to mandatory reconsideration for DWP benefits.
- Ask a welfare rights worker to help. Citizens Advice, local housing charities, and welfare rights teams can help you complete a strong application.
How Much and How Long?
DHPs are typically:
- £50–£200/month for a rent shortfall gap
- Awarded for 1–6 months, often with a review at the end
- Can cover rent arrears as a lump sum in some cases
There is no legal maximum amount — a DHP can, in principle, cover the full shortfall — but councils are constrained by budget.
At the end of an award period, you should reapply if the situation continues and you have not been able to resolve it. However, a council may reduce or end a DHP if they feel insufficient progress has been made.
The DHP Budget Problem
Councils receive a central government budget for DHPs annually. Once exhausted, no further awards are made until the next financial year. In high-demand areas, councils may run out of DHP funds by autumn or winter.
Apply as early in the financial year as possible (April–June) for the best chance of receiving an award.
Alternatives if DHP Is Refused
| Alternative | Contact |
|---|---|
| Local Welfare Assistance Fund | Your local council — for emergency cash needs |
| Budgeting Advance (UC claimants) | UC journal request — for one-off expenses |
| Homeless prevention fund | Council housing team |
| Social housing waiting list | Council housing register |
| Local housing charity | Search “housing charity + [your council area]” |
| Foodbank + referral for other support | Local foodbank or Citizens Advice |