Powys Discretionary Housing Payments for rent

One main tool that Powys County Council may use to combat rent arrears are Discretionary Housing Payments (DHPs). These grants can be distributed from council funds on behalf of local tenants who are at risk of forcible removal even though they can normally afford the monthly rent. The purpose is to aid those in social housing.

Powys residents who are in danger of homelessness have the support of council. Instead of letting someone get evicted because they cannot pay the rent, emergency rental aid is sometimes authorised in the form of Discretionary Housing Payments.

If a tenant is in arrears due to quitting a job or some other voluntary situation, that person would likely be disqualified from aid. However if someone has incurred a hardship due to an unexpected emergency, the rent payment could be made through assistance to the tenant.

If council approves a DHP, the funds would be disbursed to the landlord. Landlords are expected to drop any plans to take possession of the property. Since they can only be used for housing costs, requests must be based on actual rents owed.

Payments can be authorised when necessary to prevent homelessness. The administration of this service is keen to prevent abuse by those who might take advantage of what they might see as a free handout.

Situations where DHPs may be authorised

Anyone who has had housing benefit/universal credit reduced could be eligible for the scheme. Reductions can be based on local housing allowance (LHA) limitations. Implementation of a benefit cap is another consideration.

Many councils were concerned that the bedroom tax would result in a huge increase in tenants who fell into arrears. Those concerns have proven true, as a large numbers of tenants are suddenly experiencing a drop in housing benefit. Powys County Council officials made a decision when the bedroom tax was implemented that they would need to work with tenants who were adversely affected by the bedroom tax. Therefore if a family is unable to pay the higher share of a home due to bedroom tax, council can step in to help.

Part of the purpose of DHPs is to provide an interim solution to a permanent problem. In a situation where someone is unable to pay rent due to bedroom tax, the obvious permanent solution is to move to a more appropriate dwelling to meet their needs. However this may not always be possible right away. The tenant may be forced to wait many months until a suitable vacancy becomes available. Council could provide temporary payments to cover the rent shortfall while the housing authority works to permanently fix the situation.

Council cannot pay DHPs for more than one year. Some situations may be prioritised over others, such as those where a tenant has already received an eviction notice. If a household member is a foster child or disabled, then the case may receive special attention.

How to apply

Social housing tenants may submit a written application to the Benefit Service in Llandrindod Wells (PO Box 71).

Assistance with completing an application is recommended and available at the closest Housing Area Office:

• The Brecon office is on Cambrian Way. Telephone is 01874 612287.
• The Llandrindod Wells office is on Ithon Road. Telephone is 01597 827242.
• The Newtown office is at Vastre Industrial Estate. Telephone is 01686 617522.
• The Welshpool office is on Severn Road. Telephone is 01938 551307.
• The Ystradgynlais office is at Hendre Ladus. Telephone is 01639 846543.

In the application, residents must reveal information about income, including amounts received from benefit payments. Expenditures must also be explained so that the Housing Options Team specialist may tally a complete budget. They need to see where the money is going to determine if a DHP is necessary to prevent homelessness. Some expenditures may need to be eliminated as a part of this budget analysis.