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Discretionary Housing Payments

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

This is general guidance only. Benefit rules can be complex and change frequently. Check GOV.UK or contact Citizens Advice for help with your specific situation.

Key points

  • DHPs are available to people receiving UC housing element or Housing Benefit whose housing costs are not fully covered.
  • Common reasons for DHPs include the benefit cap, LHA shortfalls, bedroom tax reductions, and exceptional circumstances.
  • Each council decides its own DHP criteria and has a limited annual budget — apply early in the financial year.
  • 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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Who Can Apply for a DHP

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

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

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 Local Government and Social Care Ombudsman (LGSCO) — 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

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?
There is no fixed maximum for a single DHP award — the council can award any amount up to the difference between your housing benefit/element and your actual rent. However, councils have limited annual budgets and must prioritise the most serious cases. Awards are typically made for specific periods rather than open-endedly.
Can I get a DHP if I am an owner-occupier?
No. DHPs are only available to people who receive Housing Benefit or the housing costs element of Universal Credit as renters. Owner-occupiers can apply for Support for Mortgage Interest (SMI) if they receive qualifying benefits, but DHPs are not available for mortgage costs.
How quickly will I receive a DHP?
Processing times vary by council. Some councils aim to decide within two weeks, others may take longer. If your housing situation is urgent — for example you face eviction without the DHP — make this clear in your application and ask for an urgent assessment.
Can a DHP cover a deposit or rent in advance?
Yes. Many councils use DHPs specifically to help people move to cheaper accommodation by covering a deposit or rent in advance for a new tenancy. If you are moving to reduce your housing costs, a DHP application for moving costs is often well-received because it resolves the longer-term shortfall. Make clear in your application that you are moving to accommodation within your LHA rate.
I was refused a DHP — can I complain to the Ombudsman?
You can complain to the Local Government and Social Care Ombudsman if the council made a procedural error in your DHP application — for example by failing to follow its own published DHP policy, failing to consider your evidence, or refusing to give reasons for the decision. The Ombudsman cannot substitute their own decision for the council's, but they can require the council to reconsider properly. Before approaching the Ombudsman, exhaust the council's internal review process first.

What to do next

  1. 1
    Apply for a DHP through your council

    Find your council and apply for a Discretionary Housing Payment.

  2. 2
    Get housing advice from Citizens Advice

    Free advice on housing costs and alternatives to DHPs.

  3. 3
    Understand the benefit cap

    How the cap affects your housing element and what to do.

Official bodies and resources

Department for Work and Pensions

Government

The government department responsible for welfare, pensions, and child maintenance policy in the UK.

Citizens Advice

Charity

Provides free, confidential, and independent advice on a wide range of issues including benefits, housing, debt, and employment.

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Disclaimer

This information is for general guidance only and does not constitute legal advice. You should seek qualified legal help if your situation requires it.