Scottish Discretionary Housing Payment: guidance manual

Section 12: What DHPs cannot cover

30. Ineligible charges

30.1 Housing costs are deliberately not defined in the 2018 Act, but there are some charges which are ineligible to be met by a DHP. Ineligible charges are those in respect of:

• the acquisition of furniture or household equipment
• the use of such furniture or equipment where that furniture or household equipment will become the property of the individual by virtue of an agreement with the landlord
• charges for water or sewerage, where an individual is already in receipt of full water charge reduction assistance
• council tax

31. Increases in rent due to outstanding rent arrears

31.1 Consideration should be given in these cases as to whether the individual was eligible to apply for a DHP at the time the arrears were incurred. This is particularly pertinent if the arrears were incurred while the individual was affected by the removal of the spare room subsidy or the benefit cap. Consideration should be made as to whether a backdated DHP payment should be made to cover some or all of the rent arrears.

31.2 If the individual was not eligible for a DHP at the time the arrears were accrued then a DHP cannot be paid for the ineligible period.

31.3 If an individual was in receipt of DHPs at the time the arrears were accrued then consideration should be given to whether the individual was in receipt of the correct amount. However, DHP payments should not be duplicated to cover the same costs.

32. Sanctions, suspensions and reductions in benefit

32.1 Section 89(2) in Part 5 of the Social Security (Scotland) Act 2018 states financial assistance may not be given where the need for the assistance arises solely from reduction, non-payability or suspension of a reserved benefit as a result of an individual’s conduct (for example, non-compliance with work-related requirements relating to the benefit).

32.2 However, an exception to this can be allowed where the need for the assistance in question also arises from some exceptional event or exceptional circumstances and is immediate

Examples of exceptional event may include, but are not limited to;

• sudden and severe financial hardship due to a natural disaster
• an unexpected medical crisis (serious illness or injury) that significantly impacts the individual’s, or their dependants’, ability to meet basic needs
• sudden bereavement, family breakdowns, or unexpected caregiving responsibilities
• victims of crime may require immediate assistance to cope with the aftermath

32.3 Sanctions may include:

• reduction in Income Support (IS) or income-based Jobseeker’s Allowance (JSA(IB)) due to a Reduced Benefit Direction (RBD) for failure to comply with the Child Support Agency in arranging maintenance. The RBD is a reduction in benefit of 40% of the personal allowance and only applies to IS or JSA(IB)
• reduction in benefit as a result of non-attendance at a work-focused interview. This applies both where the person’s HB is reduced and when any other benefit that the person is receiving (such as IS) is subject to a sanction
• reduction or loss of benefit due to a JSA employment sanction. JSA is not payable for the period of sanction if they have contributed towards their unemployment status, for example, by leaving employment voluntarily or failing to attend a prescribed training scheme. In such cases it may be possible for a reduced rate of JSA to be paid under the JSA hardship provisions
• reduction in benefit due to a JSA sanction for 16/17-year-olds – for certain young people who receive JSA under a Severe Hardship Direction. JSA is not payable for the period of the sanction if they have contributed towards their unemployed status, for example, by leaving employment voluntarily or failing to attend a prescribed training scheme
• restriction in benefit due to a breach of a community payback order, or
• reduction in UC due to a sanction as specified under regulations 100 to 114 of the UC Regulations 2013