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What are discretionary housing payments

Discretionary housing payments are extra payments that can be made by your local authority if you need help to pay your housing costs.

Who can get a discretionary housing payment

You can get a discretionary housing payment from your local authority if you are entitled to housing benefit or universal credit which includes an amount for rent costs. Discretionary housing payments are for help with your housing costs - for example because:

  • your benefit is reduced because of the bedroom tax or the benefit cap
  • the local housing allowance does not cover your full rent
  • your benefit does not cover your rent because of non-dependant deductions
  • your benefit does not cover your rent because of the level of your earnings
  • you need help with a rent deposit or rent in advance
  • you need help with removal expenses

The Scottish government provides funding through discretionary housing payments to mitigate the effects of the bedroom tax and the benefit cap. This means that if you are affected by the bedroom tax or the benefit cap and you apply to your local authority for a discretionary housing payment you should get one. 

The scheme is discretionary, so for help that is not linked to the bedroom tax or the benefit cap, the local authority can decide whether to pay you, how much to pay and for how long.

How much are discretionary housing payments

Your local authority decides how much discretionary housing payment to award you, and how long for. This could be a one-off payment, or the same amount every week or month. For weekly or monthly payments, the amount of a discretionary housing payment cannot usually top up your universal credit housing costs element or housing benefit to an amount in excess of your rent liability. The exception to this is where you are subject to the benefit cap and your benefit is reduced by more than the amount of your rent. In this situation, a discretionary housing payment may be more than the level of your rent.

The local authority decides how to pay you. For example, it could be paid alongside your housing benefit, direct to your landlord or into your bank account.

Claiming discretionary housing payments

You claim a discretionary housing payment from your local authority, whether you are getting housing benefit or universal credit. The rules on how you can claim are set by your local authority. Find links to local authority webpages about discretionary housing payments on mygov.scot.  

If you disagree with a decision about a discretionary housing payment you can challenge this decision by requesting a review.

How to challenge a discretionary housing payment decision

If you are unhappy with a local authority’s decision about a discretionary housing payment, you can ask for the decision to be looked at again. This is called a ‘review’.

There is no time limit to ask for a review, but you should do so as soon as possible after finding out about the decision. There are no rules about how you have to request a review. Check the decision notice to see how your local authority wants you to request a review.

If you are still unhappy with the decision

If you are still unhappy with the decision after a review, you cannot appeal against it. You will need to either make a complaint to the local authority, or get legal advice about whether you have grounds for judicial review.

You can find information about your local authority’s complaints procedure on its website. Find links to local authority websites on mygov.scot.
 

Future changes

Abolishing the bedroom tax

The Scottish government has the power to decide how much help with rent people can get in universal credit. It says that it will no longer make bedroom tax reductions, but it is not clear when this will happen.

When the change is made and there are no bedroom tax reductions, some people will see their extra universal credit reduced by the benefit cap instead. The Scottish government will make sure that no-one loses out by introducing ‘housing assistance’. It is expected that this will be paid with your universal credit, and you will not need to do anything.

More information

For in-depth information about discretionary housing payments, see chapter 29 of the Welfare benefits and tax credits handbook. You'll need a subscription to be able to log in and read the content.

The Scottish government has produced guidance about discretionary housing payments which local authorities should follow. Read the Scottish government guidance on gov.scot