Thousands can receive up to £4,500 with this housing scheme, check if you are eligible

Thousands of renters could receive help with their housing costs under a little-known financial support scheme called the Discretionary Housing Payment (DHP). It is thought that many households are missing out on the payment, which in some cases could be up to £4,500.

The latest figures show that renters have been hit harder than most during the cost of living crisis and so this scheme will come as welcome news to many.

Discretionary Housing Payment

The DHP is a fund distributed by councils to those struggling to keep up with rent and housing costs. It is available to those on Housing Benefits or the Housing Element of Universal Credit in England and Wales.

The payments are discretionary and are allocated according to the local authority in that area so the exact amount you receive can depend on where you live. Councils distribute the money on a case-by-case basis and things like the cost of your housing, the size of your family and if you've fallen behind on rent are among the circumstances that will be taken into account.

The average amount handed out across the country is around £527 but some areas are giving out thousands of pounds and in some areas as much as £4,496 was awarded to households, according to The Sun.

DHP funding in England and Wales can help people with housing costs, including those affected by:

• The benefit cap
• Removal of the spare room subsidy in the social rented sector
• Local Housing Allowance (LHA) rates

The DHP can be used to cover housing costs for:

• A rent shortfall
• Rent deposits
• Rent in advance if you need to move home

The DHP cannot be used for council tax payments, even if you get Local Council Tax Support.

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Who is eligible and how to apply

You can apply for a DHP if you currently get either:

• Housing Benefit
• The housing element of Universal Credit and need more financial support with housing costs

Each council decides how their application process will work and how the funds will be distributed depending on your circumstances. They will decide:

• Whether to give you a DHP
• How much you will be paid
• How long you will receive the payment

You need to apply through your local council for the DHP, which you will be able to find online or by calling them directly, as per Gov.uk.

There is also a similar scheme in Scotland which can also provide support for housing costs though with slightly different eligibility criteria, this too can be found online.

Councils across the country only have a limited amount of money in their funds so it’s important to apply as soon as possible to ensure support if you are eligible. There is no limit to the number of times you can apply and if you already have funding and it runs out, you are able to reapply for further support.

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Sources used:

- The Sun 'RENT SUPPORT Thousands of renters could get help paying bills with little-known scheme worth up to £4,500 – check if you can claim'

- Gov.uk 'Applying for a Discretionary Housing Payment'