KNOWSLEY METROPOLITAN BOROUGH COUNCIL HOUSING AND COUNCIL TAX BENEFIT - DISCRETIONARY HOUSING PAYMENTS POLICY

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1 APPENDIX A KNOWSLEY METROPOLITAN BOROUGH COUNCIL HOUSING AND COUNCIL TAX BENEFIT - DISCRETIONARY HOUSING PAYMENTS POLICY 1. Background The purpose of this Policy is to specify how the Benefits Service will operate the Discretionary Housing Payments scheme from April 2013 and to indicate some of the factors that will be taken into account when deciding if a Discretionary Housing Payment should be made. A Discretionary Housing Payment is an amount of money, payable under the Discretionary Financial Assistance Regulations 2001, where a local authority considers that a customer requires further help with housing costs. It is paid in addition to the Housing Benefit entitlement. From April 2013 Discretionary Housing Payments will be available to support customers in receipt of Housing Benefit or Universal Credit (where the person has a rent liability and is eligible for housing costs) with their housing costs. Discretionary Housing Payments can not be used to support residents with their Council Tax liability. The total amount of Discretionary Housing Payment which can be awarded by the Authority in any year is determined by the Department for Work and Pensions (DWP). An amount of Subsidy is payable towards expenditure but it is significantly less than the overall cash limit an authority is permitted to spend. The legislation gives broad discretion and it is important that authorities are seen to act fairly, reasonably and consistently. The amount of money left from the Government contribution must not be a factor in an authority s decision making. If the amount awarded in the year falls short of the subsidy received, the excess subsidy must be returned to the Department for Work and Pensions. If payments exceed the Subsidy limit, the authority must fund the payments from its own sources. Once an overall cash limit is reached the authority cannot award any more Discretionary Housing Payments. The Authority s Discretionary Housing Payments grant for 2013/14 is 468,623 with an overall cash limit of 1,171,558. The Council has a statutory responsibility under the Social Security Contributions and Benefits Act 1992 to promote the take-up of Housing Benefit, and a key priority for the Benefits service is to maximise entitlement to all Welfare Benefits.

2 2. Policy Objectives The Discretionary Housing Payment policy should provide temporary support to those at risk of homelessness and enable residents to access help with affordable accommodation, debt and money advice and where appropriate employment and training opportunities. Any award of Discretionary Housing Payments over the Government contribution but not exceeding the Authority s overall cash limit needs to be funded by the Local Authority. In order to ensure that both the Government contribution and any local authority funding provides the best possible outcomes, priority will be given to cases where short-term assistance can result in sustainable tenancies or help customers to resolve their financial difficulties and move forward, thus improving their lives. The policy is intended to support and not to replace existing services. A number of discretionary funds are available from the DWP and elsewhere in the authority; for example Budgeting Advances for those entitled to Universal Credit or the tenancy bond scheme for claimants needing help with rent in advance or rent deposits. Where appropriate officers will support claimants to maximise their entitlement to other Welfare Benefits and/or signpost them to other existing services before they are considered for a Discretionary Housing Payment. Through the operation of this Policy, the Council will seek to:- Alleviate poverty; Encourage and support Knowsley residents in to employment; Promote sustainable tenancies and encourage the provision of decent housing for benefit customers; Keep families together; Safeguard residents in their homes; Support the vulnerable in the community; Help claimants who are experiencing personal crisis or other difficult events; Support young people in the transition to adult life; and Help those who are trying to help themselves.

3 3. Claiming a Discretionary Housing Payment All claims for a Discretionary Housing Payment must be made in writing by the claimant or someone acting on their behalf, such as an appointee or advocate, if the person is vulnerable and requires support. Where additional information or evidence is required claimants may be contacted over the telephone, offered a home visit or an office interview or evidence requested in writing. In all cases claimants will be given one calendar month to supply additional information or evidence. More time will be allowed upon request if the required evidence is available but the claimant is unable to provide it within the original time scale. Where additional evidence or information is not supplied and additional time has not been requested the application will be determined on the evidence available. In all cases the claimant will be notified of a decision on their DHP claim in writing and with reasons as soon as is reasonably practicable. 4. Awarding a Discretionary Housing Payment Decisions in relation to the awarding of Discretionary Housing Payments will be made by the Visiting Team in the Benefits Service. In deciding whether to award a Discretionary Housing Payment the Council will prioritise the prevention of homelessness. Consideration will be given to the customer s full circumstances and will take particular account of the following factors:- The long term sustainability of the tenancy including:- - Difficulties in accessing suitable accommodation; - The shortfall between the claimant s entitlement to Housing Benefit or the Housing Element of Universal Credit and their rental liability; and - Future prospects of affordability. Any steps taken by the customer to resolve their financial difficulties, reduce their rental liability or to seek alternative accommodation. The financial, medical or social needs and circumstances of the claimant, their partner and any other members of their household; The income available to the household, including the amount of any savings or capital held by the customer or family members; The action taken by the landlord to recover arrears of rent;

4 The amount available in the Council s permitted total for Discretionary Housing Payments; and, Any other special circumstances brought to the attention of the Council. The above list is not exhaustive nor is it an attempt to produce a blanket policy. Every case will be treated individually and on its own merits in a fair and equitable manner, having particular regard to the Council s policies on equality and diversity. Discretionary Housing Payments can not be paid for: Council Tax Ineligible service charges Increases in rent due to outstanding rent arrears Certain sanctions and reductions in benefit In order to make a claim for Discretionary Housing Payment, a claimant must already be in receipt of an amount of Housing Benefit or be entitled to a housing element in Universal Credit. 5. Housing Costs The DWP suggest that housing costs can be given a wider interpretation than merely rent liability and could include; Rent in advance; Deposits; Other lump sum costs associated with a housing need such as removal costs. However, these can only be considered where the claimant is entitled to Housing Benefit or Universal Credit (with a housing element) and therefore may only be appropriate where an existing claimant is moving to affordable accommodation following a reduction in their benefit as a result of one of the welfare reforms. In the case of rent in advance, it should be recognised that welfare benefits are generally paid in arrears. Payment in advance is likely to result in a duplicate payment at the end of a tenancy and will therefore only be considered in extreme circumstances. The Local Housing Allowance Safeguard includes a provision to allow rent to be paid direct to a landlord where the rent is reduced to secure or retain a tenancy. This provision will be actively used as an alternative to payment of rent in advance. Good quality, well managed private sector accommodation is recognised in Knowsley. Landlords are encouraged to join our Accreditation Scheme which

5 gives prospective tenants the assurance of secure, well maintained accommodation and both landlord and tenant access to the Tenancy Bond Scheme providing deposits and rent in advance. Applications for rent deposits by way of DHP will only be considered where claimants can evidence that the rent charged by the landlord is affordable and that they have attempted to access existing services and have been excluded. DHP s are unlikely to be awarded for deposits where: The landlord would be entitled to access a rent deposit but chooses not to take part in the landlord accreditation scheme. The tenant is due to have a deposit returned to them from their current accommodation and this is available to them for the new tenancy. The tenant has previously accessed a tenancy deposit bond from the authority and this has been forfeited due to the tenant damaging the property or failing without good reason to comply with the tenancy terms. DHP s will not be awarded for a deposit where: The landlord can not supply evidence of their intention to deposit the bond in a Government approved tenancy deposit protection scheme. Other lump sum costs will be considered on a case by case basis with reference to the policy objectives outlined in part one of this policy. 6. Method of Payment and Period of the award Where a DHP is made as a lump sum payment for a specific housing need the award notice will identify the reason for the award, the fact that it is a one off payment and who it will be paid to. In the case of a rent deposit or rent in advance it is likely that payment will be made direct to the landlord but consideration will be given to the wishes of the claimant. In the case of a periodic award where there is a shortfall in the rent DHP s will normally be paid to the person receiving the rent but again consideration will be given to the wishes of the claimant. Wherever possible payment will be made with Housing Benefit payments by BACS or cheque. For those in receipt of Universal Credit a decision on the method of payment for DHP s will be determined when further information relating to the roll out of Universal Credit is know. Where DHP s are made to cover a short fall in the rent the initial period of award will be based on the particular circumstances of the case but will not

6 normally exceed 26 weeks. It is intended that the additional help to claimants provided through the Discretionary Housing Payment scheme will normally be on a short term basis and it is envisaged that the total period of any award will not normally exceed 52 weeks. Where customers find it necessary to re-claim a Discretionary Housing Payment after the initial award has ended, priority will be given to those customers who are taking positive action to resolve their financial difficulties. Claimants may be required to submit updated financial or medical information in support of their claim for a Discretionary Housing Payment. Wherever possible the Authority will use its own resources to verify information and under no circumstances will the customer be expected to pay a third party to provide that evidence. Awards may be reduced or revoked where a claimant s circumstances change or as a result of the level of expenditure against the Council s permitted total figure. 7. Support Welfare reform changes are expected to have a significant impact on many of our residents and DHP s have been identified by the Government as a way for local authorities to support their residents through these changes. Despite the increase in funding for DHP s it is unlikely that all residents can be supported in this way and although regulations do not restrict the period that a DHP can be paid for it is unlikely that funding will be provided at the current levels indefinitely. DHP s can only be a temporary method of support and this policy recognises the importance of helping claimants out of poverty and if possible into employment. All claimants making an application for a DHP will be offered: A benefit check to maximise their entitlement to welfare benefits; Access to Money Guidance and debt advice; Support to access a basic bank account; Access to housing advice; and Where relevant signposting to employment support and education or training opportunities.

7 8. Appeals Procedure A claimant who is dissatisfied by the outcome of their claim for a Discretionary Housing Payment may appeal in writing against the decision within one calendar month of the date that they were notified of it. The initial appeal will be considered by a Benefits Team Manager. This person must not have been involved in the original decision-making process. The decision will either be amended or confirmed and the claimant will be informed of the outcome of the review and the reasons for that decision. If the claimant is still not satisfied by the outcome of the review, they may request a further review of the decision. This request must be made in writing within one calendar month of the date on which the Council notified the claimant of the outcome of the initial review. The request for a further review of the decision will be considered by a Panel of at least two senior officers from Exchequer Services, comprising the Assistant Borough Treasurer (Exchequer Services), Benefits Manager and/or Principal Benefits Manager. The Panel will either confirm or amend the decision and will write to the claimant informing them of the outcome of the further review. The decision of the Panel is final. There is no statutory right to request a further review of the decision however, in the interests of natural justice; the above procedures have been adopted. Where a claimant remains dissatisfied the route of judicial review is available, and the local government ombudsman if there is an allegation of maladministration. 9. Monitoring of Decisions to Award Discretionary Housing Payments The Benefits Subsidy Officer will be responsible for the regular scrutiny, forecasting and monitoring of the value of Discretionary Housing Payments. Monitoring data will be collected as required by the DWP and will include trend analysis of the reasons for decisions to award or refuse Discretionary Housing Payments. This performance data will be reported to the Benefit Manager each month and used to compile and submit claims to the DWP as required in September and April. Further details will be included when the DWP finalise their reporting and monitoring requirements. Regular liaison meetings will be held with stake holder groups including Strategic Housing and Housing Options to ensure that support is coordinated to achieve the best possible outcome for claimants.

8 10. Budget Monitoring Profiling techniques will be used to ensure demand is met over the course of a year. Reports will be provided at regular intervals as part of the normal performance monitoring process to monitor spend, ensure fairness and consistency and act as a safeguard to ensure that the Authority does not make awards in excess of its cash limit. 11. Raising Awareness of Discretionary Housing Payments The Council is committed to maximising the Benefit entitlement of those people entitled to receive it. The Council will ensure that all Customer Services, Housing Benefit Service and Housing Strategy employees are aware of Discretionary Housing Payment and the procedures for claiming it and will identify and advise claimants whose circumstances are such that an award of Discretionary Housing Payment might be appropriate. This will be done through awareness sessions to help staff understand when these circumstances are, e.g. when a review of a decision is asked for; or as a result of a change of circumstances where entitlement is dramatically reduced, after checking that the correct regulations and processes have been applied to the claim on input. It also stops false hope for customers who are unlikely to qualify for a DHP under agreed guide lines. In addition, the Council will publicise the availability of Discretionary Housing Payments and produce information literature for distribution to the Council s One Stop Shops, Customer Contact Centre, Registered Social Landlords, Welfare Rights Agencies and other partners. A review of this literature is needed to ensure up to date information is available in respect of future Welfare Reform changes, due to take place from April The information will be replicated on the Council s website.