Summary: We will not investigate this complaint about the Council’s decision not to give the complainant a Discretionary Housing Payment. This is because there is insufficient evidence of fault by the Council.

The complaint

1. The complainant, whom I refer to as Mr X, complains about the Council’s decision not to give him a Discretionary Housing Payment (DHP) to help him pay his rent.

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The Ombudsman’s role and powers

2. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word ‘fault’ to refer to these. We must also consider whether any fault has had an adverse impact on the person making the complaint. I refer to this as ‘injustice’. We provide a free service, but must use public money carefully. We may decide not to start an investigation if we believe it is unlikely we would find fault. (Local Government Act 1974, section 24A(6), as amended)

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How I considered this complaint

3. I read the complaint and considered some information from the Council. This includes Mr X’s DHP application, his review request, the Council’s decisions and the DHP policy. I invited Mr X to comment on a draft of this decision.

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What I found

Discretionary Housing Payment

4. The Council can award a DHP to help someone pay their rent. There is no right to a DHP and the policy says an award should be the exception rather than the norm. Unless the claimant lives in an adapted property a DHP is not usually awarded for more than three to six months. The Council can award a DHP as a short-term solution while someone looks for cheaper accommodation. The policy says the Council must also consider the impact an award will have on the DHP budget.

What happened

5. Mr X moved into a guest house in August 2020. The rent is £280 a week. He applied for housing benefit in December. The Council awarded benefit from August and awarded the maximum amount payable of £101 a week. This means Mr X has to pay the remaining weekly rent of £178. Mr X receives a pension and has a limited income. Mr X has been borrowing money from a relative but this is not a viable solution.
6. Mr X applied for a DHP in January. He said he has no option but to live in the guest house because landlords will not accept people in receipt of housing benefit. The Council decided not to award a DHP. The Council said there is a significant shortfall between the rent and the maximum housing benefit Mr X can receive. It said he had chosen to live somewhere with a large shortfall and had stayed there since August although he knew it is unaffordable. It explained there are cheaper properties in the area and many people rent while receiving housing benefit. It suggested Mr X could consider moving to a cheaper area. It explained it could not justify awarding a DHP when Mr X had chosen to stay in accommodation which is unaffordable. It said a DHP can be awarded as a temporary measure to provide support while someone tries to move. The Council signposted Mr X to agencies who provide housing, money and debt advice.

Assessment

7. I will not start an investigation because there is insufficient evidence of fault by the Council. I appreciate Mr X is struggling to pay the rent but the Council’s decision to refuse a DHP is consistent with the policy so there is no reason to start an investigation. DHPs are intended to provide short-term help until someone is able to change their circumstances so they no longer need help with the rent. This could be achieved through moving or an increase in income. But, a DHP is not intended to act as a long-term solution especially when the shortfall is more than the housing benefit award and payment would have a big impact on the DHP budget.
8. In addition, the Council acted appropriately by signposting Mr X to agencies who might be able to help him.
9. We do not act as an appeal body and have no power to award a DHP or to tell the Council it must make an award.

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Final decision

10. I will not start an investigation because there is insufficient evidence of fault by the Council.

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Investigator's decision on behalf of the Ombudsman