Summary: There was no fault in the way the Council decided not to award a discretionary housing payment to Mr X.

The complaint

1. Mr X complains that the Council refused his application for a discretionary housing payment (DHP) because he had savings, when it had previously told him that it does not take savings of less than £6000 into consideration. He says the Council failed to properly follow its policy when it made the decision.

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The Ombudsman’s role and powers

2. We investigate complaints of injustice caused by ‘maladministration’ and ‘service failure’. I have used the word ‘fault’ to refer to these. We cannot question whether a council’s decision is right or wrong simply because the complainant disagrees with it. We must consider whether there was fault in the way the decision was reached. (Local Government Act 1974, section 34(3), as amended)
3. If we are satisfied with a council’s actions or proposed actions, we can complete our investigation and issue a decision statement. (Local Government Act 1974, section 30(1B) and 34H(i), as amended)

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How I considered this complaint

4. I have:
• considered the complaint and the documents provided by the complainant;
• discussed the issues with the complainant;
• made enquiries of the Council and considered the comments and documents the Council has provided; and
• given the Council and the complainant the opportunity to comment on my draft decision.

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What I found

5. The Discretionary Housing Payments Guidance Manual, issued by the Department for Work and Pensions, says that a DHP may be awarded when a council considers a claimant requires further financial assistance towards housing costs and is entitled to either Housing Benefit or Universal Credit with housing costs towards rental liability.
6. When someone applies for a DHP they must provide details of their income, capital, expenditure and any other information the council considers reasonably necessary.
7. There are no rules on the financial issues to be taken into account when considering the award of DHPs. The guidance says that councils may wish to consider if the claimant has any capital they could use to make up the shortfall.
8. The Council’s DHP policy says that when considering whether to award a DHP, it will take into account the claimant’s savings or capital.

Background to the complaint

9. Mr X applied for a DHP when he was not working and receiving Universal Credit. He says a council officer told him that the Council disregards savings of less than £6000.
10. The Council refused Mr X’s application because it considered:
• he was able to meet his rent and essential day to day living expenses;
• he had savings of around £3500, so had available funds; and
• he was not in arrears with his rent so was not under threat of eviction.
11. Mr X appealed the decision. The Council decided to uphold its decision to not give Mr X a DHP. It said that it appeared he could afford his essential expenditure from his income and he also had capital available to make up any shortfall on a short-term basis.

Analysis

12. The Council disregards capital of up to £6000 in the calculation of Housing Benefit and Council Tax Support, but it does not disregard capital when considering requests for DHPs. I am satisfied the Council properly followed its policy and government guidance when it reached its decision to not give Mr X a DHP. I have not seen any evidence to show that the Council gave incorrect advice to Mr X about disregarding savings. I have found no evidence of fault here.

Final decision

13. I have completed my investigation and do not uphold Mr X’s complaint. There was no fault by the Council.

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Investigator's decision on behalf of the Ombudsman