Increased Demand Drives Restrictions to Cash-Limited Rent Support Fund

“It is no surprise that there is an unprecedented demand on the Discretionary Housing Payment scheme at this time. It is unacceptable that the Housing Executive has found itself in the position of having to balance the books by cutting support to those vulnerable people most in need.”

Kevin Higgins, Head of Policy, Advice NI

 

Following detailed engagement with the Housing Executive, Advice NI can confirm the following policy changes in relation to the Discretionary Housing Payment scheme in Northern Ireland.

 

What are Discretionary Housing Payments?

The Discretionary Financial Assistance Regulations (Northern Ireland) 2001 provide the enabling powers for the delivery of Discretionary Housing Payments.

Discretionary Housing Payments are intended to help tenants living in the private rented sector sustain their tenancy and prevent and alleviate homelessness.

The Discretionary Housing Payment scheme provides extra help with rent if Universal Credit or Housing Benefit does not fully cover the rent charge. Each Discretionary Housing Payment is considered on a case-by-case basis and on its own merit.

 

Discretionary Housing Payment – Spending in Recent Years

The Discretionary Housing Payment scheme is provided from a cash-limited fund for Northern Ireland.

Year	Budget	Spend
1 April 20 to 31 Mar 2021	£6.1m	£4.2m
1 April 21 to 31 Mar 2022	£6.1m	£4.2m
1 April 22 to 31 Mar 2023	£6.49m	£6.4m

* Figures from the Housing Executive (August 2023)

 

Current Pressures on the Discretionary Housing Payment scheme

For the current financial year 2023/24 the budget is £6.49 million.

However due to an increase in awareness of and demand for the scheme, it is predicted that on current spend, the 2023-24 Discretionary Housing Payment scheme budget baseline of £6.49m would be depleted before the end of the 2023-24 financial year. Therefore, to protect the scheme in 2023-24, the Housing Executive has deemed it necessary to apply limits to the financial assistance that is available through the scheme.

 

Decision to Restrict Awards to a Maximum Period of 2 Years & Reduce the Amount of Awards

Firstly, the decision has been taken to end Discretionary Housing Payments for cases in payment over 2 years, which has been applied with immediate effect. In total, 3,321 claimants have been advised that their award has ended.

Moving forward, claimants who reach their 2-year limit will see their award terminated.

Secondly, for existing cases still in payment, a maximum award of £20 per week has been put in place, although the award for many claimants is less than this figure.

Moving forward, all new claimants will be subject to this change.

The situation is being kept under constant review and these decisions may be subject to further change.

It is also worth noting that if a claimant is unhappy with the decision on their Discretionary Housing Payment, they can ask for the decision to be looked at again. This is called a review and can be made by telephone, email or in writing to the local Housing Benefit Unit.

 

Speaking about the changes to the Discretionary Housing Payment scheme, Kevin Higgins, Head of Policy, Advice NI said:

“It is so disappointing to see this cut in support again targeting our most vulnerable, low income households. We must remember that the Discretionary Housing Payment scheme provides a vital lifeline for private tenants struggling to afford their rent.

“It must be acknowledged that a decade of welfare reform and austerity has created a situation where, in many situations, there is a significant shortfall between contractual rents charged by landlords and the support provide by Housing Benefit or Universal Credit. For example, the Local Housing Allowance rate at which Housing Benefit or Universal Credit is paid, although increased to the 30th percentile of market rents in April 2020, has been frozen ever since. An increase to the Local Housing Allowance is an essential element of any solution to this problem.

“This situation is also compounded by rising interest rates which has led to increased mortgage costs for many buy-to-let landlords who have in turn increased rents in what is known as the ‘pass-through effect’.

“It is no surprise that there is an unprecedented demand on the Discretionary Housing Payment scheme at this time. It is unacceptable that the Housing Executive has found itself in the position of having to balance the books by cutting support to those vulnerable people most in need. In fact, this scheme needs to be bolstered to provide the support needed at this time, otherwise there is no doubt that there is an increased risk of arrears, evictions and homelessness.”

 

 

Notes:

1. Press Contact - Kevin Higgins, Head of Policy, Advice NI on 028 9064 5919.
2. Advice NI is the umbrella body for the Independent Advice Network in Northern Ireland. In 2021/22 Advice NI and its members dealt with 241,000 enquiries, the majority being social security benefits related.
3. To find out more about the work of the Independent Advice Network or to obtain copies of the various publications produced by Advice NI, please contact us at 028 90 645919, email comms@adviceni.net or visit our www.adviceni.net
4. If you need advice on legacy benefits or Universal Credit please call our Freephone helpline on 0800 915 4604
5. More information on the Discretionary Housing Payment scheme here … https://www.nihe.gov.uk/housing-help/housing-benefit/more-help-with-paying-your-housing-costs