To consider the guidelines for the determination of Discretionary Housing Payment Claims.  

That the revised Discretionary Housing Payment Policy be ADOPTED.  

33.1           The report of the Revenues and Benefits Group Manager, circulated at Pages No. 41-52, set out a revised Discretionary Housing Payment Policy and asked Members to adopt the revised Policy as attached to the report.   

33.2           Members were advised that the Council had the power to award a discretionary housing payment where a tenant was having difficulties in meeting their rent liabilities and in some other cases where it was appropriate to do so. It could also make appropriate payment towards other housing costs. The existing Policy had been reviewed by the Overview and Scrutiny Committee following the impact of the welfare reform and the Chancellor’s budget of 8 July 2015; the work done on financial inclusion; and the completion of the transformation project in the Benefits Team. If the changes were adopted they would greatly assist both the Benefits Team and Housing Services in the administration of discretionary housing payments and would help in reducing discretionary housing payment expenditure by assisting clients to move into cheaper alternative accommodation thereby reducing the need for the claimant to make further applications for discretionary housing payments. In addition, there would be further reductions in welfare benefit awards for some recipients and it was important that the Council was in a position to react and assist housing benefit recipients who could be facing further reductions in benefit.

33.3           In terms of the proposed changes to the Policy, Members were advised that the Revenues and Benefits Team and the Housing Team were working closely together on claims for discretionary housing payments. To assist the claimant in moving it was suggested that the Council would offer help by being able to pay towards the rent deposit when moving into a new home; and assist with removal costs. When considering the application, the decision-maker must take into account whether the property was affordable for the tenant; and the tenant has a valid reason to move; and the deposit or removal cost is reasonable. Currently, the Borough Council had five housing benefit claimants, not in receipt of a discretionary housing payment, whose benefits were being capped. It was likely that the numbers would increase following the Chancellor’s announcement in his budget speech. With this in mind it was important that the Council was in a position to offer assistance where there was a need and the housing benefit recipient was: in temporary accommodation; an individual or family fleeing domestic violence; someone with kinship care responsibilities; or individuals or families who could not move immediately for reasons of health, education or child protection. Finally, there was a need to update the introduction of the Discretionary Housing Payment Policy to include the fact that local authorities may also make payment awards towards other housing costs and that the level of payment awarded must not exceed the eligible rent, taking into consideration the claimant’s overall financial and personal circumstances. For lump sum payments, such as deposits and or removal costs, those limits did not apply.

33.4           A Member expressed concern that there were many vulnerable people who did not seek advice from the Council when they needed it and he questioned to what extent Officers were proactive in looking for people in those situations. He was of the view that Housing Associations should be telling the Council about rent arrears so that the Council could speak to those people immediately to offer advice. In response, the Revenues and Benefits Group Manager indicated that it was a problem that people did not seek help at an early stage. On all of the Council’s documentation, discretionary housing payments were mentioned and it was made clear that the Policy was in place to assist people if they were having difficulty in meeting their rent. Housing Associations in the Borough were also aware of the Policy and so should also be telling residents that it was available. The Council had a good working relationship with Severn Vale Housing Society and it was hoped that this would continue to develop; particularly in terms of information sharing between the two organisations. In respect of the funding provided by Government, the Revenues and Benefits Group Manager explained that if the Council did not use the funding from the Government then it did have to repay it. However, it was felt to be unlikely that this would happen given the cuts expected in welfare payments. In particular, significant cut backs in benefits to working age claimants were expected and, with the Government indications that this was likely to increase, discretionary housing payments were likely to be even more necessary.

33.5           Accordingly, it was