I do not know much about DHPs so I would be grateful for help.

Are home owners in leasehold (sheltered) schemes eligible for DHPs?

We have a scheme that is in need of major works. This will have cost implications for our residents, so we are looking at ways in which we can soften the blow.

We are looking at the possiblility of setting up repayment plans, but wondered if some residents might be eligible for DHPs.

Thanks in anticipation,

Carol

The fact that your residents are leaseholders is not that significant. The Criteria for a DHP payment is that the payment (DHP’s can be paid ‘lump sum, or in ‘weekly entitlement’ with HB and or via the Ctax accounts), must be made in respect of a liability that would ordinarily be eligible for HB, and not excluded from the list of payments in reg 3 of the DHP regs, (see page 62/963 of current (16th Ed) CPAG).

So long as HB could be paid for that charge, there is no reason why a DHP could not be paid, (subject to there being an actual pre-existing entitlement to HB and/or CTB). You might consider eligibility for DHP’s on the basis of a service charge or ground rent etc. that you currently make to your leaseholders, as the actual ‘lump sum’ capital charge that you bill each individual tenant for is unlikely to be eligible for DHP’s.

Housing Costs for the purposes of DHP's is not defined in the Discretionary Financial Assistance Regs 2001, so such costs on the face of it may be eligible for DHP's .

BUT Reg 3 of the Regs is problematic for you It states :

"For the purposes of section 69(2)(a) of the Child Support, Pensions and Social Security Act 2000, Eor section 7, 8 or 9 of the Social Security Fraud Act 2001 the prescribed circumstance in which discretionary housing payments may be made is where a person has made a claim for a discretionary housing payment and the requirement for financial assistance does not arise as a consequence of–
.......
(d) a liability to make periodical payments in respect of such housing costs as are referred to in regulation 10 of the Housing Benefit Regulations in a case where the person is entitled to council tax benefit but not housing benefit;"

HB Reg 10 includes service charges and other periodical payments that must be made as a consequence of use and occupation of the dwelilng.

I think the effect of this is to exclude leasholders from claiming DHP's for the housing costs that would be eligible for HB should that person be a tenant.

If that person is eligble for IS, Income Based Jobseekers Allowance , or Pension Credit, then the costs could be included in the applicable amount, or the interest on a loan taken out to pay a one off charge could be met.