Summary: We will not investigate this complaint about a Discretionary Housing Payment because there is insufficient evidence of fault by the Council.

The complaint

1. The complainant, whom I refer to as Mr X, says the Council agreed, in writing, to pay him a Discretionary Housing Payment (DHP) of £3900 but only paid £1500. Mr X wants the rest of the money, an apology and compensation.

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The Ombudsman’s role and powers

2. The Ombudsman investigates complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse impact on the person making the complaint, which we call ‘injustice’. We provide a free service, but must use public money carefully. We do not start an investigation if we decide there is not enough evidence of fault to justify investigating. (Local Government Act 1974, section 24A(6))

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How I considered this complaint

3. I considered information provided by Mr X and the Council. This includes Mr X’s DHP application and government guidance about DHPs. I also considered our Assessment Code and comments Mr X made in reply to a draft of this decision.

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My assessment

4. Councils can award a DHP to help with additional housing costs such as a deposit. There is no right to a DHP and it is for each council to decide whether to make an award and the amount. There is a restricted budget for DHPs. Government guidance makes a distinction between DHPs for rent in advance and for holding deposits. It also says councils should award duplicating payments for housing benefit and rent in advance, and should consider if the rent is excessive.
5. Mr X applied for a DHP for rent in advance of £1250 and for a deposit of £3000. He submitted his application before he had found a property to rent. Mr X says the Council agreed, in writing, to pay £3900 for the rent in advance and for the deposit. Mr X has not provided a copy of this written agreement. Mr X receives housing benefit to help with the rent for the property. The Local Housing Allowance for the area is rent of £246 a week; Mr X’s rent is £300 a week. This means his rent is considered to be higher than the average comparable rent in the area.
6. The Council awarded a DHP of £1500 to cover the deposit. It said there were no records of it agreeing to pay £3900. The Council said it would not award a DHP for rent in advance because the rent is excessive and because Mr X gets housing benefit.
7. Mr X says the Council agreed to pay the deposit and says the term deposit includes the rent in advance and the holding deposit. He also says the Council agreed to pay the whole deposit.
8. I will not start an investigation because there is insufficient evidence of fault by the Council. The Council awarded a DHP of £1500 for the rent deposit and it is for the Council to decide whether to award a DHP and the amount. Mr X has not provided any evidence that the Council promised to pay £3900 and neither is such a commitment reflected in the Council’s records. Although Mr X requested a higher amount on the DHP application the Council is not obliged to pay the amount claimed.
9. The Council explained why it would not pay a DHP for the rent in advance. The government guidance confirms that rent in advance and the holding deposit are separate elements of an application. It also confirms councils should avoid duplicating paying housing benefit and paying a DHP for rent in advance. It is also correct that a council should take into account whether the rent is excessive.

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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