discretionary housing payments

Question !  will the DHP scheme as operated by LAs still be able to be used to access paymants under the Council Tax Support System ?

I have asked my local LAs and some had not realised it could ever have been used for CTB [shocking] and others suggest it won’t apply to CTS while others admit they do not know the answer.

No- Although prior to April DHPs can be used for shortfalls between CTB and CTAX liabiity that is no longer the case post April.

There is, however, a power to award a discretionary discount quite seperate from the DHP scheme that could apply in individual cases. The full cost of these do, however, fall on the billing authority.

Thank you J Membury, I assume you mean reg 13a of the LA regs, again a part of the regs that is a foreign land to many LAs, ( but will no doubt come a lot closer to home after April ) Thanks for your reply, is it possible to identify the source of your info please.

Probably the clearest statement is that contained in the DHP guidance manual - relevent part copied below.

What do we mean by housing costs?

1.11 Housing costs are not defined in the regulations and this gives LAs a broad discretion to interpret the term as they wish.

1.12 In general, housing costs means rental liability. However, housing costs can be interpreted more widely to include:
• rent in advance
•deposits
•other lump sum costs associated with a housing need such as removal costs.

1.13 Following the abolition of council tax benefit from April 2013, DHPs can no longer be made towards council tax liability

Thank you, It is correct though is it not,that C/tax discounts can be made under section 13A of the L G Act ?

Yes discretionary discounts come under 13A of the LGFA 1992 (as amended)
The problem you may find here is that the full cost of these discounts falls on the billing authority.

In multi-tier authority structures (I.E County/District) this means that the billing authority not only does not get it’s own share of the Council Tax discounted, but must still pay the preceptors their share (around 90%) of the Council Tax foregone.

As the financial impact on the Council is a relevant consideration in the exercise of dscretion it is often the case that these discretionary discounts are only granted in very unusual and challenging circumstances.

J Membery Re; the DHP Guidance, many thanks for that, very useful. I note that in addition to rental costs it can be used [potentially] for rent in advance and other lump sum payemnts. I have spoken to my neighbouring LAs and each of them says a BIG FAT NO to the suggestion that anything other than rent top up can be met by a DHP. Is this just a case of educating them or am I missing something [ I have seen the DWP consultation doc from Dec 2012 which suggests that LAs should be looking to other types of assistance rather than just rent shortfall]

Indeed I have had experience of how difficult it is to get the LA to grant a discount under section 13A. However they must be pressed on the issue as I am sure funding though one aspect of the decision making process should not be used as a blanket policy to avoid making grants.

I would urge anyone with a good case to apply for a section 13A payment. In fact the previous LA I applied to [not Ashfield] went from outright refusal to eventually awarding a grant to a whole group of people. The grant can be to individuals or to a group, such as pensioners.