Discretionary Housing Payments
Verified against 5 sources
- The Discretionary Financial Assistance Regulations 2001 (SI 2001/1167)
- DWP — Discretionary Housing Payments: Good Practice Guide
- GOV.UK — Discretionary Housing Payments
- Shelter — Discretionary Housing Payments guidance
- GOV.UK — Crisis and Resilience Fund: guidance for local authorities in England (1 April 2026 to 31 March 2029)
In England, Discretionary Housing Payments ended on 31 March 2026, and since 1 April 2026 help with housing costs there comes from the Housing Payment strand of the council's Crisis and Resilience Fund. Discretionary Housing Payments continue in Scotland and Wales, and the rest of this guide describes the Discretionary Housing Payment scheme in general terms, so check your own council's rules. A Discretionary Housing Payment (DHP) is additional help from your local council to cover a housing costs shortfall — such as when your UC housing element or Housing Benefit does not cover your full rent. DHPs are not guaranteed and are awarded at the council's discretion based on your circumstances and the council's budget.
Important
Key points
- In England, Discretionary Housing Payments ended on 31 March 2026; help with housing costs there now comes from the Housing Payment strand of your council's Crisis and Resilience Fund. DHPs continue in Scotland and Wales.
- The Housing Payment is for people entitled to Housing Benefit or the housing element of Universal Credit; if you do not qualify, ask about the council's Crisis Payment scheme.
- In Scotland and Wales, DHPs are available to people receiving UC housing element or Housing Benefit whose housing costs are not fully covered.
- In Scotland and Wales, common reasons for DHPs include the benefit cap, LHA shortfalls, bedroom tax reductions, and exceptional circumstances.
- In Scotland and Wales, each council decides its own DHP criteria and has a limited annual budget — apply early in the financial year.
- In Scotland and Wales, a refused DHP application can be reviewed by the council, but DHPs are not appealable to a tribunal.
Find your local council
Some processes here depend on your local council — for example housing applications, council tax support, or social care needs assessments. Enter your UK postcode to look up which council covers your address.
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Housing Payment (England)
In England, Discretionary Housing Payments ended on 31 March 2026. Since 1 April 2026, help with housing costs there comes from the Housing Payment strand of your council's Crisis and Resilience Fund. Councils must name the scheme "Housing Payment", so look for that name on your council's website.
The Housing Payment is for people entitled to Housing Benefit or the housing element of Universal Credit. Its funding may be used for:
- Rental deposits and rent in advance
- Costs of securing housing or downsizing, such as removal expenses or tenancy set-up
- Shortfalls between your housing support and your actual rent, including those caused by the benefit cap, the removal of the spare room subsidy (the bedroom tax) or Local Housing Allowance
If you do not qualify — for example, because you are not entitled to Housing Benefit or the housing element of Universal Credit, or you own your home — ask your council about its Crisis Payment scheme.
Who Can Apply for a DHP
In Scotland and Wales, to apply for a DHP you must already be receiving Universal Credit housing element or Housing Benefit. DHPs are specifically designed to fill gaps in housing support, including situations where:
- Your rent exceeds your LHA rate (Local Housing Allowance) and you cannot reduce your rent or move
- The benefit cap has reduced your housing element below your rent amount
- The bedroom tax (under-occupancy charge) has reduced your housing element
- You need financial help to pay a deposit or rent in advance to secure new accommodation
- You have exceptional circumstances causing short-term housing cost difficulties
DHPs are not a permanent solution — they are typically awarded for a fixed period (often 3–12 months) and you may need to reapply. The council will usually ask what you are doing to improve your financial situation or reduce your housing costs over time.
How to Apply
In Scotland and Wales, apply directly to your local council's Housing Benefit or benefits team. Most councils have an online DHP application form. Your application should explain:
- Why your housing costs are not covered by UC or Housing Benefit
- Your monthly income and essential outgoings
- Why you cannot reduce your costs or move to cheaper accommodation
- Any special circumstances — such as disability, caring responsibilities, or children's school placements — that make it especially important for you to stay in your current home
- What steps you are taking to improve your situation
Councils are more likely to award DHPs where there is a clear genuine need and where the applicant is taking reasonable steps toward financial independence. Evidence from a social worker, health professional, or school can strengthen your application.
If Your Application Is Refused
In Scotland and Wales, if your DHP application is refused, you can ask the council to review its decision. Unlike benefit appeals, DHPs cannot be appealed to an independent tribunal — the council has the final say. However, a review request may succeed if:
- You can provide additional evidence the council did not consider
- The council did not follow its own DHP policy
- Your circumstances have changed since the original decision
If you disagree with how the council has administered its DHP scheme, you can complain to the relevant ombudsman — though this is about process rather than the merits of your case. Citizens Advice can help you write a review request and explore alternative sources of help if the DHP is not available.
Making the Strongest Possible DHP Application
This section applies to DHPs in Scotland and Wales. Because DHPs are discretionary and budgets are limited, the quality of your application matters enormously. Councils award DHPs based on a needs assessment rather than a simple eligibility check, and a compelling, well-evidenced application stands a much better chance of success.
Describe your situation in detail: Councils need to understand why the standard housing support does not cover your costs and why you cannot simply resolve the problem yourself. Common compelling circumstances include: a disability or health condition that makes it impossible or very difficult to move to cheaper accommodation; children at a local school who would be severely disrupted by a move; proximity to a support network (family or carers) that provides essential care; a tenancy in an area where no properties are available at LHA rates; or a history of domestic abuse that makes it unsafe to move.
Include supporting letters: Letters from a GP, social worker, health visitor, school, or other professional confirming the specific need to remain in your current home significantly strengthen DHP applications. For example, a GP letter confirming that a move would be medically inadvisable, or a school letter explaining the severe impact on a child with special educational needs — these give the council a concrete reason to prioritise your case.
Show what you are already doing: Councils are more likely to award DHPs to applicants who are actively working to reduce their housing costs or improve their financial situation. If you are looking for cheaper accommodation but cannot find anything within your LHA, document your search efforts. If you are already taking steps to reduce other outgoings, show this in your income and expenditure statement.
Apply at the start of the financial year: DHP budgets are typically allocated annually and can run out before the end of the year. Applications submitted in April or May generally have more chance of success than those submitted in January or February when budgets may be exhausted.
Renewing DHPs: Most DHPs are time-limited. If your circumstances have not changed when the DHP ends, apply for renewal promptly. A renewal application should update the council on your current situation and explain why the underlying housing costs shortfall persists. Providing evidence of any steps taken since the original award (such as continued housing searches) demonstrates ongoing good faith.
Frequently asked questions
How much can a Discretionary Housing Payment cover?
Can I get a DHP if I am an owner-occupier?
How quickly will I receive a DHP?
Can a DHP cover a deposit or rent in advance?
I was refused a DHP — can I complain to the Ombudsman?
In-depth answers
What to do next
- 1GOV.UK Discretionary Housing Payments factsheet for councils in Wales
GOV.UK says this factsheet is for councils in Wales. In England, Discretionary Housing Payments ended on 31 March 2026 — ask your council about the Housing Payment.
- 2Get housing advice from Citizens Advice
Free advice on housing costs and alternatives to DHPs.
- 3Understand the benefit cap
How the cap affects your housing element and what to do.
Tools for this topic
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Official bodies and resources
Department for Work and Pensions
GovernmentThe government department responsible for welfare, pensions, and child maintenance policy in the UK.
Citizens Advice
CharityProvides free, confidential, and independent advice on a wide range of issues including benefits, housing, debt, and employment.
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