If the housing support you receive does not cover your rent, you do not have to simply fall into arrears. Your council can make an extra payment called a Discretionary Housing Payment to help with the gap. It is one of the most useful and least known forms of help for renters on benefits. This guide explains what Discretionary Housing Payments are, what they can cover, and how to apply.

What a Discretionary Housing Payment is

A Discretionary Housing Payment, or DHP, is extra money from your local council to help with housing costs when your Universal Credit housing element or Housing Benefit does not stretch to your full rent. As the name suggests, it is discretionary, meaning the council decides whether to award it based on your circumstances, and it comes from a limited pot of money, so it is not guaranteed. It is usually intended as short-term help rather than a permanent solution.

What it can help with

A DHP can help with a range of housing shortfalls, including:

  • A gap between your rent and the Local Housing Allowance as a private tenant.
  • A reduction in your housing support because of the bedroom tax.
  • A shortfall caused by the benefit cap.
  • A rent deposit or rent in advance for a new home.
  • Moving costs if you need to move to more affordable accommodation.

It can be a lifeline while you sort out a longer-term solution, such as moving, finding work, or challenging another decision.

Who can apply

To get a DHP, you must already be receiving help with your rent through the Universal Credit housing element or Housing Benefit, and need further help to meet your housing costs. You cannot get a DHP for costs that housing support does not cover at all, such as most service charges, or for council tax, which has its own separate help. If you meet the basic condition, it is worth applying and explaining your situation fully.

How to apply

You apply to your local council, usually through a form on their website or by contacting their housing benefit or revenues team. You will need to explain your circumstances, your income and outgoings, and why you need help with your housing costs. The more clearly you set out your situation, including any efforts you are making to improve it, such as looking for cheaper accommodation or work, the stronger your application is likely to be.

How decisions are made

Because DHPs are discretionary and come from a limited budget, councils weigh up each application against their own priorities and the funds available. They will look at your income and spending, your efforts to help yourself, and the consequences if you do not get help, such as the risk of losing your home. There is no automatic right to a DHP, but a well-explained application that shows real need has a good chance.

How long it lasts

A DHP is usually awarded for a set period rather than indefinitely, on the basis that it is a stopgap while you address the underlying problem. When it ends, you can apply again if you still need help, though there is no guarantee of a further award. Because of this, it is best to use the time a DHP gives you to work towards a lasting solution, such as a more affordable home or increased income.

If you are turned down

If your application is refused, ask the council to explain why and whether you can ask them to look at the decision again, as the process for challenging a DHP decision is set by each council rather than being a formal appeal. You can also reapply if your circumstances change. Getting advice from Citizens Advice can help you put together a stronger application or challenge a refusal.

How much you can get

There is no fixed amount for a Discretionary Housing Payment, because it depends on your shortfall, your circumstances and the council's funds. It might cover all or part of your gap, and it might be a one-off payment or a regular amount for a set period. Because the help is tailored to your situation, it is important to set out clearly how much you are short each month and why, so the council can work out what you need.

DHPs and the benefit cap

Discretionary Housing Payments are often used to help households affected by the benefit cap, which limits the total benefits some people can receive and can leave a gap between their housing support and their rent. If the benefit cap has reduced your housing help, a DHP can be one way to bridge the shortfall while you look at longer-term options, such as the work or circumstances that would exempt you from the cap. Mention the benefit cap clearly in your application if it affects you.

What a strong application looks like

A strong DHP application sets out your income and essential outgoings, the exact shortfall, why you cannot meet it, and what you are doing to improve things, such as looking for cheaper housing, seeking work, or dealing with debt. Including evidence, and explaining the consequences if you do not get help, such as the risk of losing your home, helps the council understand the urgency. A clear, honest, well-evidenced application stands the best chance.

Use the time it buys you

Because a Discretionary Housing Payment is usually temporary, the best approach is to treat it as breathing space and use the period it covers to tackle the underlying shortfall. That might mean looking for a cheaper home, taking steps that exempt you from the benefit cap, increasing your income, or challenging a benefit decision. Going back to the council for a further award is possible, but planning a lasting solution while the payment is in place puts you in a much stronger position.

Keep a copy of everything

When you apply, keep a copy of your application and any evidence you send, along with the council's decision. If you need to reapply or challenge a refusal, this record makes it much easier. It also helps you keep track of how long an award lasts, so you can apply again in good time if you still need help, rather than being caught out when a payment stops.

Ask early, not in crisis

It is far better to apply for a Discretionary Housing Payment as soon as you see a shortfall coming than to wait until you are deep in arrears or facing eviction. Applying early gives the council more options to help and shows you are acting responsibly. If your circumstances are already serious, say so clearly, but wherever possible, treat a looming shortfall as a prompt to seek help straight away.

In short

A Discretionary Housing Payment is extra, discretionary help from your council towards a rent shortfall, whether from the Local Housing Allowance, the bedroom tax, or the benefit cap, and it can also help with deposits and moving costs. It is short-term and not guaranteed, so apply with a clear explanation of your need and use it to work towards a lasting solution.

Where to get help

Citizens Advice and your council can help you apply for a DHP. See our guides to the Universal Credit housing element, Local Housing Allowance and the bedroom tax for the shortfalls a DHP can help with.