Discretionary Housing Payment

Extra, discretionary help from your local council when Housing Benefit or the Universal Credit housing element still leaves a shortfall — renamed in England from April 2026, but working in much the same way under new branding.

Is Discretionary Housing Payment still called that?

In England, no, not since 1 April 2026. It continues under the Discretionary Housing Payment name in Scotland and Wales, but in England it has been restructured into the Housing Payment strand of a new three-year scheme, the Crisis and Resilience Fund, running from 1 April 2026 to 31 March 2029. Many councils still refer to it as "Discretionary Housing Payment" or describe the new name as the old one "previously known as" — which is why the term is used on this page, even though the English scheme now sits under different branding.

Who can get help under the English Housing Payment scheme?

The government has said the qualifying criteria stay the same as they were for Discretionary Housing Payment — you generally need to already be getting Housing Benefit or the housing costs element of Universal Credit, and be facing a shortfall between that and your actual rent. Each council still decides individual awards based on need and available funding, so getting the underlying benefit does not guarantee a payment.

Does a discretionary payment reduce how much rent I legally owe?

No. It is a separate payment to help cover a shortfall, not a change to your tenancy agreement or the rent your landlord is entitled to charge. You remain contractually liable for your full rent regardless of whether a discretionary payment is awarded.

Can I get a discretionary payment to help with a deposit or rent in advance?

Potentially, depending on your council's local policy — discretionary support of this kind has historically covered things like rent deposits, rent in advance, or removal costs for people moving to more affordable accommodation, as well as ongoing shortfalls. Check your own council's current scheme rules, since discretion over exactly what is covered sits with each local authority.

How is a discretionary payment different from Local Housing Allowance?

Local Housing Allowance sets the maximum amount of help with rent built into Housing Benefit or the Universal Credit housing element in the first place. A discretionary payment is additional, separate help a council can choose to give on top of that, where the LHA-based amount still leaves a shortfall and the council judges there is a case for extra support.

What if my council refuses my application?

Ask the council for its reasons and, if your circumstances have changed or you have more evidence of need, consider reapplying. There is no statutory right of appeal to a tribunal for a discretionary payment refusal in the way there is for some benefit decisions, since the award is a matter for the council's discretion — but most councils operate an internal review or complaints process, which is usually the right first step.

What changed in England from 1 April 2026

From 1 April 2026, the UK government replaced Discretionary Housing Payments in England with a new, longer-term scheme called the Crisis and Resilience Fund (CRF), running for three years until 31 March 2029. Within the CRF, the element that covers what used to be a Discretionary Housing Payment is called the Housing Payment strand. The government has said the qualifying criteria for a Housing Payment are intended to stay the same as they were for the old Discretionary Housing Payment — there is no change to who can apply or who can, in principle, receive support, only to the name and the wider funding structure around it.

Scotland and Wales were not covered by this change, since the Crisis and Resilience Fund is a scheme for local authorities in England. Discretionary Housing Payments continue to exist under that name, and under the original legislation, for renters in Scotland and Wales.

Who qualifies, and what it is for

A discretionary payment is only available to someone already receiving Housing Benefit, or the housing costs element of Universal Credit, whose rent is not fully met by that underlying benefit. Common reasons for a shortfall include the Local Housing Allowance cap falling below your actual rent, a reduction for an under-occupied bedroom (the so-called bedroom tax), or being affected by the benefit cap. A council can also use discretionary funds more broadly — for example towards a rent deposit, rent in advance, or the costs of moving to cheaper accommodation — depending on its own local policy.

Crucially, qualifying for the underlying benefit does not guarantee an award. Each council decides individual cases based on need, and on how much funding it has available that year, which means outcomes can genuinely differ between councils and between years, even for broadly similar circumstances.

Why this matters if you are dealing with rent arrears

A shortfall between your benefit-based housing support and your actual rent does not, on its own, reduce what you owe your landlord — you remain contractually liable for the full rent agreed in your tenancy. But if you are facing arrears or a possession claim because of a benefit shortfall, having applied for a discretionary payment, and being able to show you did so, can be relevant to how a court exercises its discretion on a discretionary ground for possession, and can sometimes close the gap before arrears become serious enough to put your tenancy at real risk.

A tenant in England receives the housing element of Universal Credit, calculated using the Local Housing Allowance rate for her area. Her actual rent is £150 a month higher than the LHA-based amount she receives. She applies to her council for help with the shortfall under the Housing Payment strand of the Crisis and Resilience Fund.

Universal Credit housing element (LHA-based)

Housing Payment award (council's decision, example)

£120 / month for 6 months

The award is not automatic or guaranteed in amount or duration — the council decides based on her circumstances and its available funding, and it may be time- limited, reviewed, or renewed depending on local policy.

Local Housing Allowance

Universal Credit (housing element)

Grounds for possession

Crisis and Resilience Fund: guidance for local authorities in England (1 April 2026 to 31 March 2029)

Claiming Discretionary Housing Payments

Discretionary Housing Payment — Renters' Rights Glossary

What a Discretionary Housing Payment is, how it became the Housing Payment strand of the Crisis and Resilience Fund in England from April 2026, and who can get it.