DHP frequently asked questions

Discretionary Housing Payments (DHP) are intended as short-term payments for people that are struggling financially and need help towards housing costs.

Limited funding for DHP awards is provided by the Government on an annual basis, the local authority are responsible for the administration of the scheme.

They are not benefit payments and awards are made at the discretion of Sunderland City Council.

Is longer-term support available?

We will always encourage people to support themselves in the longer term and we recommend you have a financial resilience check, which is carried out by your local first tier advice provider free of charge. Further details can be found at Managing your money.

What do we mean by 'housing costs'?

In broad terms, housing costs usually refer to rental liability, this is the rent you pay to your landlord, however, in certain limited circumstances, a DHP can also be awarded to cover costs related to moving home. See the 'What other housing costs Can DHP cover?' question below for further details.

Why is there a shortfall in my eligible rent?

Whether you are receiving Universal Credit (UC) or Housing Benefit (HB) your benefits often don't cover your full rent, however a DHP may be able help to make up part of the shortfall. Some of the most common reasons for a shortfall in your eligible rent include:

Restrictions in the amount of benefits you can receive, this is known as a Benefit Cap
Spare Room subsidy , often referred to as 'Bedroom Tax' in social rented properties
Reductions due to Local Housing Allowance restrictions in privately rented properties

Would I qualify for a DHP to cover a shortfall in my rent?

Restrictions in the amount of benefits you can receive, this is known as a Benefit Cap
Spare Room subsidy, often referred to as 'Bedroom Tax' in social rented properties
Reductions due to Local Housing Allowance restrictions in privately rented properties

What other housing costs can DHP cover?

If you are struggling to pay the rent for your current home, perhaps due to Bedroom Tax, you may need to move to smaller, more affordable accommodation.

If you receive Housing Benefit or Universal Credit already and think that cannot afford the costs related to moving home. In a very small number of cases a DHP may be able to help towards some of these costs.

DHP can by exception be awarded to cover:

Rent in advance

- These are payments that private landlords usually ask for in advance of people moving into their property

Rent deposit

- These are payments that landlords ask you to pay, normally before you move into a property, and can also be called a security deposit. This can be used by the landlord to cover rent arrears or damage to the property

- The deposit is your money and should be returned to you in full at the end of your tenancy unless the landlord has reason to make deductions

- Your landlord must protect your deposit in an authorised deposit protection scheme if you have an assured shorthold tenancy. Most private renters have this type of agreement, you can find out more about private tenancies by visiting Shelter England

Removal costs

- DHP may be awarded to help towards the cost of moving your household belongings to your new property

Strict qualifying criteria are applied when considering a DHP for these reasons, and you must have exhausted all other means of obtaining funding, so please do not assume that you will qualify for any of these or borrow money for these on the assumption that the council will pay these .

If you are moving into the Sunderland Council area from another council / local authority area you should apply to your current local authority first in case they can help you . This is because DHP can only be awarded where Housing Benefit or Universal Credit with Housing Costs are already in payment

In addition, rent in advance and deposits would not be allowed for registered social landlord or housing association properties and further details can be found in the following section.

What do DHPs not cover?

DHP cannot cover council tax or ineligible service charges such as any of the following examples

the acquisition of furniture or household equipment; and
the use of such furniture or equipment where that furniture or household equipment will become the property of the claimant by virtue of an agreement with the landlord
Charges for water, sewerage, and environmental services

A DHP cannot also be awarded to pay for rent while waiting for Housing Benefit or Universal Credit claims to be awarded. For Universal Credit claimants this also means until the end of their first assessment period.

How much DHP will I receive and for how long?

DHP's are means-tested, so awards will vary according to your circumstances. The amount awarded however will not exceed the shortfall in the rent
DHP awards are designed as a short term solution, the length of the award is discretionary and will be determined by the council
You can apply for a further DHP, and it may be considered if you still have a rental shortfall and you are doing all that you can to improve your situation, as outlined in the qualifying conditions. Please refer to the section 'Would I qualify for a DHP to cover a shortfall in my rent?' earlier in these FAQs. Further details can also be found in our DHP Policy
If your application is successful, you will receive payment by the following means:
- if you are receiving UC with housing costs, your DHP will normally be paid in a lump sum direct to your landlord
- if you receive Housing Benefit, the DHP award will be paid alongside your HB payment

How will I be notified of the outcome of my DHP application?

The council will always let you know the outcome of any DHP application in writing, the notification can be sent via letter or email
If your application has been successful, the letter will contain details of how much you will get and for how long
Our award letter will also contain details of anything you are expected to do to improve your situation. Details of the support available to you will also be included
If your application is unsuccessful the letter will contain the reasons why, along with information on other support that may be available to you

How long does it take to receive a decision on DHP applications?

The council aim to process all DHP applications within six weeks, however during periods of high demand it may take longer. If we are waiting for supporting evidence from you or other organisations, your application will not be processed until this is received.

What if I disagree with your decision?

DHPs are discretionary however, if you are unhappy with the decision, you can ask us to look at your application again. There are two ways to do this:

Reconsideration
- if you feel we have based our decision on incorrect information you can request a reconsideration
- it is important to request a reconsideration of the decision as soon as possible; you can do this either by telephone or in writing
- your request must include details of what you feel is wrong, you may also need to provide further information in support of your request
Internal review
- if we have used the correct information to make our decision but you are still unhappy you can request an internal review
- the request must be made in writing within one month of the date of the decision
- you must give us full details of why you think the decision is wrong
- you may also include evidence that supports your reasons and you should expect a response from us within one month
- where your request for an internal review is successful, the decision on your application will be changed. You will receive notification in writing along with a breakdown of your award
Further review
- if, after an internal review has been carried out, the decision to refuse you a DHP remains unchanged and you are still unhappy with the decision you can request a further review
- a further review will be considered by a panel of managers whose decision will be final
- if you are unhappy with the outcome of the further review, you may only challenge this further legally, via the judicial review process or by complaint to the Local Government Ombudsman

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DHP frequently asked questions