What is a Discretionary Housing Payment?

A top-up to Housing Benefit or the Universal Credit housing costs element, paid by the local council when those benefits do not meet the full rent. Typical uses: covering a shortfall caused by the benefit cap, the bedroom tax / removal of the spare-room subsidy, the Local Housing Allowance cap, or a temporary crisis. It is discretionary — the council decides whether and how much to pay.

Can I appeal a DHP refusal to a tribunal?

No. DHP is not a statutory benefit; it is made under the Discretionary Financial Assistance Regulations 2001. There is no right of appeal to the First-tier Tribunal. The only route is to ask the council to review its own decision, normally under a policy published on the council website. After an internal review fails you can complain to the Local Government and Social Care Ombudsman (England), Public Services Ombudsman for Wales, or the Scottish Public Services Ombudsman. In practice, a better-evidenced re-application is usually more effective.

How long does a DHP last?

It depends on the council and your circumstances. A DHP can be paid as a one-off, for a fixed period (often 3–12 months), or until a review date. The council is supposed to use DHP as short-term help to stabilise a housing situation — not as a permanent top-up.

What evidence should I include in a new or review application?

Everything that shows the housing cost is unavoidable and that you cannot absorb the shortfall. Include: a full income and expenditure statement; bank statements; rent statement; tenancy agreement; medical evidence for health or mobility needs (e.g. why the property size is needed); evidence of children’s needs; letters from schools, social workers, or support services; and a clear explanation of what you have tried (moving, taking a lodger, asking family, other benefits). The council should consider hardship, so the stronger the picture of hardship, the better.

Does the benefit cap or bedroom tax make me eligible automatically?

No. Being subject to the benefit cap or the removal of the spare-room subsidy is often the reason someone applies for DHP, but it does not guarantee a payment. Councils consider each application on its own circumstances. However, national government guidance explicitly names both of these groups as priorities, so highlight the cause of the shortfall on the form.

Can a DHP cover rent arrears?

Yes, in some councils. Statutory guidance says DHP can be used for rent arrears that accumulated while the claimant was entitled to Housing Benefit or UC housing costs, but not for arrears from before a claim started. Councils vary in how willing they are to clear arrears versus ongoing shortfalls. If your application is specifically to clear arrears, say so and attach the landlord’s arrears statement.

Do DHP rules differ in Scotland, Wales, and Northern Ireland?

Yes. In Scotland, DHP is administered by each local authority but funded by the Scottish Government, and is routinely used to offset the "bedroom tax" — effectively treated as a right rather than a discretion. In Wales and Northern Ireland, DHP follows the England-equivalent regulations; in Northern Ireland it is administered by the Northern Ireland Housing Executive rather than local councils.

Guide

Discretionary Housing Payment (DHP) after a refusal: how to appeal and what to include

Councils refuse a large share of DHP applications — but because DHP is discretionary, the appeal route is different from statutory benefits. There is no Mandatory Reconsideration or First-tier Tribunal. Instead you ask the council to review its own decision, and a new application with better evidence can succeed where the first did not. This guide explains how.

Last updated April 2026

Discretionary Housing Payment (DHP) is the most flexible part of the housing support system. It is paid by your local council when Housing Benefit or Universal Credit housing costs do not cover your rent. Because it is discretionary, councils refuse a significant share of applications — but they also often approve re-applications with stronger evidence. There is no formal appeal route to a tribunal, so the path back after a refusal is different from most other benefits decisions.

This guide explains the legal basis of DHP, what councils are supposed to consider, how to challenge a refusal, and what evidence to include in a re-application. Primary-source note: DHP is governed by the Discretionary Financial Assistance Regulations 2001 (SI 2001/1167) and the DWP’s DHP Guidance Manual for local authorities. Verify any specific policy statement against GOV.UK’s DHP guidance manual.

What DHP is (and isn’t)

DHP is a top-up, not a benefit. You can only qualify if you are already entitled to Housing Benefit or the housing cost element of Universal Credit. It is paid by the local council (or, in Northern Ireland, the NIHE) and funded by a central grant from DWP plus any council top-up.

What DHP can cover:

Rent shortfall caused by the benefit cap.
Rent shortfall caused by the removal of the spare-room subsidy ("bedroom tax").
Rent shortfall caused by the Local Housing Allowance (LHA) cap.
Rent arrears that arose during a period of entitlement.
Moving costs, a deposit, or rent in advance for a new tenancy.
Crisis shortfalls (short-term redundancy, illness, or bereavement).

What DHP cannot cover:

Ineligible service charges (e.g. heating, meals) bundled in your rent.
Council Tax — that has its own local discretionary scheme.
A shortfall for someone with no underlying Housing Benefit or UC housing element (for example, someone on capital above £16,000 who is not entitled to UC at all).

Who decides and how long decisions take

Your local council decides. Each council has its own DHP policy document — usually available on its website under "DHP policy" or "discretionary assistance". Read yours before applying; the policy sets out what the council prioritises.

Response times vary. Many councils aim for 20–28 working days; some respond in days if the application is marked urgent (imminent eviction, crisis homelessness). If your application has been outstanding for more than six weeks with no response, chase via email and the council’s corporate complaints route.

Why applications are refused

Common reasons a council gives for refusal include:

The applicant is not entitled to HB or UC housing costs (underlying entitlement missing).
The shortfall is judged manageable from other income.
The claimant has not tried to reduce housing costs (e.g. looked at smaller accommodation).
The application lacks evidence of hardship.
A previous DHP was paid recently and the council treats it as exhausted.
The council has used its annual DHP budget (rare but possible near financial year-end).

Many refusals are overturned when an applicant responds with the specific evidence the council says was missing, or demonstrates a change in circumstances.

How to challenge a refusal: the review route

There is no right of appeal to the First-tier Tribunal. Instead, each council runs an internal review. The steps are roughly:

Request a review in writing within the timescale set in the council’s DHP policy (commonly one month from the decision letter). If no timescale is published, ask for a review anyway.
State specifically what is wrong with the decision. Has the council misunderstood your income? Missed a piece of evidence? Applied its policy inconsistently? Failed to consider statutory guidance (e.g. that benefit-cap and bedroom-tax cases are priorities)?
Add new or fuller evidence. Bank statements showing what you actually spend; a letter from a support worker; a GP letter about why a particular room/property size is needed; a child’s EHC plan; a social worker’s letter about family needs.
Ask for the review to be done by a different officer from the one who refused. Most councils will do this as good practice.

If the internal review fails, you can:

Complain to the council’s formal complaints process (usually two stages), then to the Local Government and Social Care Ombudsman in England.
Apply for judicial review if the decision is unlawful, irrational, or procedurally unfair. This is a court case, not an appeal on the merits. Legal aid is sometimes available; contact a specialist welfare-rights solicitor.
Most practically: make a fresh application with stronger evidence once your circumstances change or you have better evidence.

Worked examples

Example 1: Priya, Manchester, bedroom-tax refusal reversed on review.

Priya is a disabled single mother in a three-bed council flat. Her two children are too young to share under the bedroom standard, so she is judged to have one "spare" room. Her UC housing element is reduced by 14%. She applied for DHP; the council refused, saying the shortfall was "manageable".

She asked for review and included:

Her full income and expenditure (showing a £42/month deficit after essentials).
A letter from her OT explaining why a move to a smaller property is not suitable.
Her child’s EHC plan showing the second bedroom is needed for sensory support.
A bank statement showing repeated overdraft fees.

The council reversed on review and paid DHP covering the full bedroom-tax shortfall for 12 months, with a review date set for March.

Example 2: Marcus, Tower Hamlets, benefit-cap shortfall — refused, re-applied.

Marcus is a single father capped at the higher-rate benefit cap (£26,500). His UC after cap is cut by £260 a month. First DHP application was refused: the council said a move to cheaper accommodation was expected. Marcus could not move; his daughter’s school, GP, and support network were all in the same LA.

He re-applied two months later with:

A letter from his daughter’s SENCO confirming the school placement is critical.
A letter from a family support worker about stability of setting.
Evidence of how rents in the borough exceed LHA by £300+/month.
A specific ask: 9 months of DHP equal to the cap shortfall.

The council granted DHP for 6 months with a review. Lesson: a concrete, time-limited ask with supporting letters outperforms a general plea.

Evidence to include in any DHP application

Financial

Bank statements (ideally 3 months).
Rent statement from the landlord.
Tenancy agreement.
A full income and expenditure breakdown.
Evidence of debts, advance-payment recoveries, or third-party deductions.

Personal

GP or consultant letter if health affects housing needs.
Occupational therapist letter if adaptations are relevant.
Child’s school letter, EHC plan, or social worker letter.
Evidence of caring responsibilities.

Causation

The reason for the shortfall (cap, bedroom tax, LHA cap, crisis).
What you have tried to reduce costs (moving, lodger, negotiating rent).
What will happen without DHP (arrears, eviction, homelessness, breakdown).

Nation-specific notes

DHP is administered differently across the UK:

England: local councils, using the DWP DHP Guidance Manual.
Scotland: DHP is funded by the Scottish Government and the explicit policy is to mitigate the bedroom tax in full. Shortfall applications linked to the spare-room subsidy are routinely granted.
Wales: DHP is administered by local councils under the England-equivalent regulations, with separate Welsh Government top-up funding.
Northern Ireland: DHP is delivered by the Northern Ireland Housing Executive (NIHE). The "welfare supplementary payment" scheme also mitigates the benefit cap and bedroom tax separately.

What to do

Read the council’s DHP policy on its website before applying.
Apply via the council’s online form or a written letter. Give a clear, specific ask (amount and duration).
Include full financial and personal evidence (see list above).
If refused, request an internal review within the council’s deadline (usually one month) with added evidence and specific reasons why the decision was wrong.
If review fails, complain to the council’s complaints team and then to the ombudsman; consider a fresh application with stronger evidence.
If at immediate risk of eviction, contact your housing officer and ask them to write a supporting letter to the DHP team.

Primary sources

Last reviewed April 2026. DHP policies are set locally and change. Check your council’s own policy document before applying. Due to You does not provide personalised legal advice; speak to a local Citizens Advice, Shelter, or welfare-rights adviser if you need one-to-one help with a DHP application or review.

Frequently asked questions

What is a Discretionary Housing Payment?: A top-up to Housing Benefit or the Universal Credit housing costs element, paid by the local council when those benefits do not meet the full rent. Typical uses: covering a shortfall caused by the benefit cap, the bedroom tax / removal of the spare-room subsidy, the Local Housing Allowance cap, or a temporary crisis. It is discretionary — the council decides whether and how much to pay.
Can I appeal a DHP refusal to a tribunal?: No. DHP is not a statutory benefit; it is made under the Discretionary Financial Assistance Regulations 2001. There is no right of appeal to the First-tier Tribunal. The only route is to ask the council to review its own decision, normally under a policy published on the council website. After an internal review fails you can complain to the Local Government and Social Care Ombudsman (England), Public Services Ombudsman for Wales, or the Scottish Public Services Ombudsman. In practice, a better-evidenced re-application is usually more effective.
How long does a DHP last?: It depends on the council and your circumstances. A DHP can be paid as a one-off, for a fixed period (often 3–12 months), or until a review date. The council is supposed to use DHP as short-term help to stabilise a housing situation — not as a permanent top-up.
What evidence should I include in a new or review application?: Everything that shows the housing cost is unavoidable and that you cannot absorb the shortfall. Include: a full income and expenditure statement; bank statements; rent statement; tenancy agreement; medical evidence for health or mobility needs (e.g. why the property size is needed); evidence of children’s needs; letters from schools, social workers, or support services; and a clear explanation of what you have tried (moving, taking a lodger, asking family, other benefits). The council should consider hardship, so the stronger the picture of hardship, the better.
Does the benefit cap or bedroom tax make me eligible automatically?: No. Being subject to the benefit cap or the removal of the spare-room subsidy is often the reason someone applies for DHP, but it does not guarantee a payment. Councils consider each application on its own circumstances. However, national government guidance explicitly names both of these groups as priorities, so highlight the cause of the shortfall on the form.
Can a DHP cover rent arrears?: Yes, in some councils. Statutory guidance says DHP can be used for rent arrears that accumulated while the claimant was entitled to Housing Benefit or UC housing costs, but not for arrears from before a claim started. Councils vary in how willing they are to clear arrears versus ongoing shortfalls. If your application is specifically to clear arrears, say so and attach the landlord’s arrears statement.
Do DHP rules differ in Scotland, Wales, and Northern Ireland?: Yes. In Scotland, DHP is administered by each local authority but funded by the Scottish Government, and is routinely used to offset the "bedroom tax" — effectively treated as a right rather than a discretion. In Wales and Northern Ireland, DHP follows the England-equivalent regulations; in Northern Ireland it is administered by the Northern Ireland Housing Executive rather than local councils.

Not sure what applies to you?

Run the 3-minute triage for a ranked list of every benefit you likely qualify for, based on where you live, your household, and your situation.

Start the triage All guides