If you’ve had an unexplained payment of two pounds hit your bank account from us, when you were expecting your normal amount of Housing Benefit (HB) – your tenant has been benefit capped.
The cap is now here; having taken effect from 16th January and capped tenants will have been notified by us of how their benefit has been reassessed.
Tenants who lose all of their HB due to the cap are left with a weekly token payment of fifty pence.
So if we are paying you as their landlord directly on a four weekly schedule, you will receive a payment for 4 x 50p = £2.00. There are also tenants who will lose some but not all of their HB. Their payments will also decrease, but obviously not by as much.
The point of the 50p payment is that if someone still receives a token amount of Housing Benefit, they are entitled to apply for a Discretionary Housing Payment (DHP)
DHP is a separate benefit to HB which can be paid to cover shortfalls between your HB entitlement and the amount of rent you are charged.
It’s normally only paid if there is exceptional hardship or special circumstances and its never intended to be a long term term solution. You can apply for a DHP via our webpages.