Irwin Mitchell challenge local authority's decision to take Disability Living Allowance into account when considering Discretionary Housing Payments
Every local authority receives a government grant each year which they can use to pay out Discretionary Housing Payments (DHP) for those people in the community who struggle to pay their rent and council tax due to their low income. Since the changes to housing benefit and the abolition of council tax benefit on 1 April 2013, more people are now struggling to make up the shortfall between their benefits and their outgoings. The government, being aware of the impact that the changes to the welfare system might have on the poorer members of the community, particularly the disabled, increased the funding to the Discretionary Housing Payments budget by £30 million.
Mr and Mrs H are one couple who were particularly affected by the changes on 1 April 2013. Both are disabled and no longer able to work. They live in a property which has been adapted for their physical disabilities, some of which were paid by Mr H whilst he was still able to work. Mr and Mrs H applied for Discretionary Housing Payments in March 2013 from their local authority.
However, the local authority decided that in assessing Mr and Mrs H’s income, they would take into account the Disability Living Allowance that both Mr and Mrs H receive. Disability Living Allowance is a non-taxable benefit that that is designed to help disabled people with the extra living costs they have as a result of their disability.
Whilst there are no rules in the Discretionary Housing Payment guidance preventing local authorities from taking into account Disability Living Allowance, local authorities are required to consider the purpose of the income and to act fairly in coming to a decision. The inclusion of Disability Living Allowance in their financial assessment amounts to disability discrimination because if Mr and Mrs H were not disabled and not in receipt of Disability Living Allowance, their overall income would be lower and they would have been granted a higher Discretionary Housing Payment.
Irwin Mitchell wrote to the local authority on 13 June 2013 setting out that the local authority’s decision was unlawful and that failure to rectify it would result in judicial review proceedings being issued. The local authority has agreed to retake their decision. Mr H says “I am really concerned that the local authority have treated us in this way, having complete disregard to our disabilities and the fact that the increase to the Discretionary Housing Payment budget was designed to help disabled people like ourselves living in adapted properties. I am pleased that they have agreed to reconsider their decision.”
For more information see www.irwinmitchell.com