Discretionary Housing Payment (DHP) Policy 2026/2027
In this policy:
- Document control
- Purpose
- Scope
- Legal and policy context
- Roles and responsibilities
- Policy principles
- Eligibility criteria
- What Discretionary Council Tax Support Payment cannot cover
- Application process
- Assessment of applications
- Disputes and internal review process
- Award types and payment method
- Equality Impact Assessment
- Data protection and information governance
- Promotion and communications
- Monitoring, compliance and assurance
- Contact information
- Review schedule and governance
Appendix A: Equality Impact Assessment
Document control
| Version | Date | Author | Summary of changes |
|---|---|---|---|
| 6.0 | 31 March 2026 | Jamie Webb |
2. Purpose
2.1 A Discretionary Council Tax Support Payment provides extra help to Council Tax Support claimants who are in severe financial hardship or have exceptional circumstances that prevent payment of their Council Tax bill.
2.2The Council can award support using its powers under Section 13A(1)(c) of the Local Government Finance Act 1992. This legislation allows the Council to reduce a Council Tax bill at its discretion.
2.3 A Discretionary Council Tax Support Payment is not a statutory entitlement, and all awards are made at the Council’s discretion.
2.4The Council sets aside a limited fund to provide this support and may change the size of this fund at any point during the year. When the fund is fully used, the Council cannot make any further Discretionary Council Tax Support Payments, regardless of individual circumstances or demand levels.
3. Scope
3.1 This policy explains how Discretionary Council Tax Support Payment applications are assessed and the factors the Council considers when deciding whether to award or refuse an application. The Council acts fairly, reasonably and consistently, and each application is decided on its own merits.
3.2 There is an expectation that all applicants will take steps to improve their situation before submitting an application for a Discretionary Council Tax Support Payment. These steps include, but are not limited to, prioritising Council Tax payments and fully engaging with appropriate support including debt advice.
3.3 The Discretionary Council Tax Support Payment scheme operates separately from Council Tax Support. Reading Borough Council also operates a Crisis Resilience Fund, funded by the UK Government, to provide support with Housing Payments and Crisis Payments.
4. Legal and policy context
4.1 Section 13A(1)(c) of the Local Government Finance Act 1992
4.2 Section 10 of the Local Government Finance Act 2012
5. Roles and responsibilities
| Role | Responsibility |
|---|---|
| The Council | Manage the Discretionary Council Tax Support Payment scheme and ensure decisions are fair, consistent and lawful. Provide accessible application routes and meet all reporting duties. |
| Assistant Director | Provide strategic oversight, ensure resources and governance are in place. |
| Assessment Officers | Assess applications, verify information and make timely decisions. Offer signposting to wider support where appropriate. |
| Applicants | Provide accurate information, report changes and engage with support services when needed. Request a review if they disagree with a decision. |
6. Policy principles
6.1 The Discretionary Council Tax Support Payment scheme is designed to support vulnerable residents, for example people with disabilities or long‑term health problems, those experiencing domestic abuse, carers, or residents facing a sudden loss of income or other significant life events.
6.2 The Discretionary Council Tax Support Payment scheme has the following key objectives:
- To help applicants who face severe financial hardship because of the Council Tax Reduction Scheme.
- To help applicants experiencing severe financial hardship due to personal crises or difficult events.
- To help applicants who need extra financial help because of ill health or disability.
- To help reduce child poverty.
- To support young people who are leaving care.
- To encourage and maintain employment.
- To support applicants who have taken steps to improve their own situation.
6.3 The Council may amend or replace certain criteria used in this policy during the financial year.
7. Eligibility criteria
7.1 The applicant must be:
- Receiving Council Tax Support for any period an award would cover.
- Experiencing severe financial hardship or exceptional circumstances that make it unreasonable to pay the Council Tax charge.
- Receiving all other relevant discounts, exemptions against their Council Tax charge and instalments extended to the end of the current financial year.
8. What Discretionary Council Tax Support Payment cannot cover
- Where full Council Tax liability is being met by Council Tax Support.
- For any reason other than reducing Council Tax liability.
- To repay excess of Council Tax Support caused by failure to report changes or false representation.
- To cover enforcement fees including summons or Enforcement Agent fees.
- Bank charges caused by non‑payment of Council Tax.
9. Application process
9.1 Applications should be made as soon as the need arises. Awards will normally only apply to the financial year in which the application is submitted.
9.2 Applications for a previous financial year must be made within one month of the date of the relevant Council Tax bill. Applications received after this deadline may only be considered if the applicant can show continuous good cause for not applying sooner. This will be decided by the Council at its discretion.
9.3 Applicants may apply directly or have an application submitted on their behalf by an appointee, authorised representative or a voluntary and community sector organisation, with appropriate checks carried out.
9.4 Two accessible application routes are available to apply online or over the phone.
9.5 The applicant must show that they have taken reasonable steps to deal with their situation before applying. This includes showing whether they have received and acted on any debt advice, benefit advice or other support offered to them.
9.6 Applicants must provide accurate information and agree to any reasonable verification checks required to support the assessment.
9.7 Decision outcomes will be sent to the applicant in writing or by email and will explain whether the application has been approved or refused, the reasons for the decision, any award that has been given, and how to ask for an internal review if they disagree.
9.8 A new application will be required when an award ends. Each application will be considered afresh and will not be automatically renewed.
10. Assessment of applications
10.1 The Council will ensure that the applicant’s circumstances, preferences and underlying needs are fully considered on a case‑by‑case basis. The Council will also ensure that any award made is fair and proportionate in relation to other Council Tax payers and Council Tax Support claimants.
10.2 Discretionary Council Tax Support Payments are subject to the funding available. Once the allocated budget has been fully used, no further Discretionary Council Tax Support Payments will be awarded.
10.3 The Council will verify information provided, review the household’s financial position, and determine whether the applicant requires further financial assistance with their Council Tax charge.
10.4 The expected processing time for a Discretionary Council Tax Support Payment is within 10 working days from all the required information being supplied.
10.5 In assessing need, the Council will consider any temporary or exceptional circumstances such as domestic abuse, changes in income, or unexpected essential expenses.
10.6 When assessing household income, Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Armed Forces Compensation Scheme payments, and War Pensions will not be treated as general income. These payments may be disregarded or matched against specific disability related or health related costs. This will be considered on a case‑by‑case basis to ensure the assessment reflects the resident’s actual financial situation.
10.7 Applicants must provide accurate information and agree to any reasonable verification checks, and failure to supply information may prevent an award.
10.8 If expenditure appears high or unusual, the Council may use reasonable benchmark figures to assess affordability and need. Benchmark figures are typical amounts for essential items such as food, energy or household goods. These figures are reviewed regularly and used to ensure awards are fair and consistent.
10.9 The Council will ensure decisions are consistent, evidence‑based, with clear recording of the rationale for the award, refusal or amount of payment.
10.10 When considering a Discretionary Council Tax Support Payment, the Council must be satisfied that the applicant’s Council Tax payments are capable of being sustained either now or in the near future. Awards should prevent recovery action and support an applicant during a temporary period of financial pressure.
10.11 The Council will apply a sustainability assessment when determining whether a Discretionary Council Tax Support Payment is appropriate. Factors that may be considered include:
- Whether the applicant can reasonably afford the Council Tax once an award ends.
- Whether the applicant is likely to have improved affordability in the near future because their income is expected to increase or their essential expenditure is reasonably expected to reduce.
- Whether there is evidence of a temporary financial shock that is likely to improve.
- Whether the household has unavoidable essential costs that limit their ability to meet the Council Tax charge.
- Whether the level of Council Tax liability is fundamentally unaffordable for the household despite reasonable budgeting.
- Any Discretionary Council Tax Support Payment already awarded within the current financial year
10.12 Where the Council determines that Council Tax Payments cannot be sustained even with a Discretionary Council Tax Support Payment, assistance may instead be offered through signposting to other support services.
10.13 The Council will expect a reasonable financial contribution from non-dependants or other adult household members where they have income and are capable of contributing. Where adults in the household are not working, have very low income, are financially dependent, or have vulnerabilities, the Council will not assume a contribution. Decisions will be based on actual household resources, not assumed support, and evidence requests will remain proportionate and trauma informed.
10.14 The Council will consider savings and accessible funds to the applicant and partner if applicable when assessing whether they require further financial assistance with Council Tax costs. As a guide, applicants with savings under £1,000 will normally be considered to have low accessible resources. Where savings exceed this amount, this will not automatically prevent an award.
10.15 The Council will consider:
- Whether the applicant can reasonably access their savings in time to pay their Council Tax.
- Whether funds are locked in, pending clearance, or otherwise not available for immediate use
- Whether using savings would place the household at risk of hardship, including health, safety or wellbeing impacts
11. Disputes and internal review process
11.1 If an applicant disagrees with a decision, they can ask the Council to carry out a review. The review request must be made within one month from the date of decision and should explain why the applicant believes the decision is wrong or incomplete.
11.2 The review will be completed by an officer who was not involved in the original decision.
11.3 If the applicant disagrees with the review decision they can request a second final review with a senior officer carrying out a final review. The review request must be made within one month and should explain why the applicant believes the decision is wrong or incomplete. We will look again at the information provided and consider any new information the applicant wishes to give.
11.4 The outcome of the review will be sent to the applicant in writing or by email within one month from the date of the review being received.
11.5 The second final review decision is final and there is no right of appeal to the Social Security Tribunal. Applicants who remain dissatisfied may use the Council’s complaints process.
11.6 If the Council does not make a decision on the application within two months, or if the applicant disagrees with the Council’s decision, they may appeal directly to the Valuation Tribunal Service within two months of the date of the Council’s decision or the date the two‑month decision period expires.
12. Award types and payment method
12.1 Discretionary Council Tax Support Payment awards are applied directly to the applicant’s Council Tax account as a discretionary reduction. The award reduces the balance owed for the relevant period. Awards cannot be paid as cash or transferred for any other purpose, and the Council will issue an updated bill showing the revised balance.
12.2 The Council may increase, reduce or end an award if the applicant’s circumstances change. This includes changes to income, benefits, household composition or essential expenditure. Applicants must report changes promptly so that awards remain accurate. Any adjustment will be applied from the effective date of the change and confirmed on an updated bill.
12.3 Any overpayment of a Discretionary Council Tax Support Payment will be recovered by an adjustment to the Council Tax account.
13. Equality Impact Assessment
13.1 The Equality Impact Assessment (Appendix A) shows that the Discretionary Council Tax Support Payment scheme is inclusive, accessible and compliant with the Public Sector Equality Duty.
13.2 The scheme is expected to have positive impacts across all protected characteristics and for groups experiencing socio‑economic disadvantage, with no unlawful discrimination identified.
13.3 Potential risks, such as accessibility barriers or re-traumatisation, are addressed through actions including assisted applications, accessible formats, translated materials, and trauma informed practice. Ongoing monitoring will ensure equitable outcomes and continuous improvement.
Data protection and information governance
14.1 The Council will use personal information to assess Discretionary Council Tax Support Payment applications and provide support. We will only collect information that is needed for this purpose, and we will keep it safe and secure.
14.2 Information will be stored and handled in line with data protection law, including UK GDPR and the Data Protection Act 2018.
14.3 We may share information with other council teams or partner organisations when this is necessary to provide support, and only where the law allows it or you have agreed to it.
14.4 A Data Protection Impact Assessment (DPIA) will be completed for this scheme and the Council’s privacy notice will explain how your information is used and what your rights are.
15. Promotion and communications
15.1 The Council will make information about the Discretionary Council Tax Support Payment scheme clear and easy to find, so residents, staff and partners understand how the scheme works and how to apply.
15.2 Information will be published on the Council’s website and shared through partner organisations, community groups and relevant council services.
15.3 Any changes to the scheme will be communicated promptly and updated in all public information.
16. Monitoring, compliance and assurance
16.1 The Council will monitor how the Discretionary Council Tax Support Payment scheme is used to ensure support is delivered fairly, consistently and in line with this policy. We will review information on applications, awards and refusals so we can understand demand, identify issues and improve the service.
16.2 Fraud checks may include verification of identity, cross‑checking information already held by the Council, or confirming details with partner agencies. These checks will be proportionate and only carried out when necessary.
16.3 The Council takes fraud seriously, and any suspected fraudulent application will be investigated, and may be referred for criminal action under the Fraud Act 2006.
17. Contact information
17.1 Residents can contact Reading Borough Council for advice, support or questions about Discretionary Council Tax Support Payment using the details below.
Money Advice Team
Reading Borough Council
Civic Offices
Bridge Street
Reading
RG1 2LU
Telephone: 0118 937 2197 Monday, Tuesday, Thursday, Friday 9am–5pm, Wednesday 10am–5pm.
Email: moneyadvice@reading.gov.uk
Online: www.reading.gov.uk/moneyadvice
18. Review schedule and governance
| Review frequency | Annually |
| Next scheduled review | March 2027 |
Appendix A: Equality Impact Assessment
A. Information about the policy
| Policy title | Equality Impact Assessment: Discretionary Council Tax Support Payments |
| Lead officer | Jamie Webb, Debt Advice and Financial Inclusion Manager |
| Date of assessment | 31/03/2026 |
| Summary of the policy | The Discretionary Council Tax Support Payment scheme provides short‑term help for residents who are experiencing exceptional financial hardship and cannot afford their Council Tax. Before applying, applicants must be receiving Council Tax Support and any other discounts or exemptions they are entitled to. If awarded, the support is applied directly to the Council Tax account as a reduction, not paid as cash. Each application is assessed individually based on household income, essential costs and any temporary changes in the applicants’ circumstances. If an applicant disagrees with a decision, they can request a review and use the corporate complaints procedure. They can also appeal to the Valuation Tribunal for England. |
B. Initial assessment
| Aim | Assessment |
|---|---|
| PSED Aim 1 (unlawful behaviour): Could your policy lead to direct or indirect discrimination, harassment, victimisation, or any other conduct prohibited by the Equality Act 2010? | No, with mitigations in place. The policy provides multiple application routes, including online and telephone, which reduces barriers for disabled or digitally excluded applicants. Reasonable verification checks must be proportionate, lowering the risk of unfair treatment. With these mitigations, the risk of direct or indirect discrimination is low. |
| PSED Aim 2 (equal opportunities): Could your policy affect how service users or employees access services or participate in activities relevant to your policy area?Could it impact people with particular protected characteristics who have a disproportionately low level of access to services, participation in public life, or other activities?Could it create or worsen disadvantages and inequalities in your community?Could it remove or minimise disadvantages and inequalities in your community? | Positive impact. The scheme supports residents experiencing financial hardship by offering discretionary reductions to Council Tax liability, which can reduce inequality. Multiple application routes improve access for groups who may face digital or physical barriers. Needs based assessments ensure decisions reflect individual household circumstances. |
| PSED Aim 3 (good relations): Could your policy affect how people perceive or interact with others?Could it help tackle prejudice and promote understanding between people with different protected characteristics?Could it lead to prejudice, community tensions, conflicts, isolation, or segregation? | Neutral to positive. Clear communication of decisions and reasons supports transparency and trust. Proportionate evidence requirements reduce the likelihood of negative interactions with applicants. There are no aspects of the policy likely to create community tensions or conflict. |
C. Full assessment
i. Impact on protected characteristics
| Protected characteristic | Expected impact | Evidence |
|---|---|---|
| Age | The policy is likely to have a positive impact by supporting residents of any age who face financial hardship with their Council Tax. The requirement for multiple application routes helps older people and younger applicants who may face digital or financial barriers. | The policy states that applications can be made online or by phone, improving access for residents who may be digitally excluded. The scheme aims to support vulnerable residents facing severe financial hardship regardless of age. |
| Disability | The policy is expected to have a positive impact on disabled people by providing flexible application routes and by disregarding disability‑related benefits from income assessments. | The policy disregards Disability Living Allowance, Personal Independence Payment and Attendance Allowance when assessing income, ensuring fairer assessments. Multiple application routes reduce barriers for disabled applicants. |
| Gender reassignment | A neutral impact is expected, as the policy makes no distinctions based on gender identity and applies the same criteria to all applicants. | The policy states that applications are assessed individually on financial circumstances, not personal characteristics. No elements of the scheme relate to or disadvantage people undergoing or who have undergone gender reassignment. |
| Pregnancy and maternity | A positive impact is expected, as the scheme can support households experiencing reduced income or increased essential costs related to pregnancy or new childcare responsibilities. | The policy includes assessment of essential household expenditure and temporary financial pressures, which can apply to pregnancy related circumstances. Support is available where applicants face severe financial hardship. |
| Race | Likely neutral to positive impact, as the policy provides accessible application routes that support applicants who may face language or digital barriers. | The policy requires the Council to act fairly, reasonably and consistently for all applicants. Applications can be submitted via phone or with an authorised representative, which can help applicants who face language barriers. |
| Religion or belief | Neutral impact is expected because the policy does not reference religion or belief and assesses all applicants solely on financial need and circumstances. | The assessment process focuses on income, expenditure and exceptional circumstances. No elements of the policy differentiate applicants on the basis of religion or belief. |
| Sex | Likely neutral impact, as the scheme bases decisions entirely on financial hardship and household need, which apply regardless of sex. | All decisions are made case‑by‑case using financial assessments that are unrelated to sex or gender. There are no criteria that favour or disadvantage either sex. |
| Sexual orientation | Neutral impact. The policy applies equally to all households irrespective of sexual orientation. | The scheme assesses applications based on financial need only. No part of the policy refers to or affects applicants differently because of sexual orientation. |
| Marriage and civil partnership | Neutral impact. Eligibility and assessment do not depend on marital or partnership status. | The policy considers household income, composition and essential expenditure, rather than legal relationship status. |
| Membership of the armed forces community* | Likely neutral to positive impact. Some armed forces related payments are disregarded in income assessments, which may benefit eligible applicants. | Armed Forces Compensation Scheme payments and War Pensions may be disregarded or matched to disability‑related costs in income assessments. |
| Socio-economic disadvantage* | Positive impact. The scheme directly targets severe financial hardship and supports residents on low incomes. | The policy aims to help residents facing severe financial hardship and provides discretionary reductions to Council Tax. Assessments review income, essential costs and exceptional circumstances |
| Experience of care* | Positive impact, as the policy includes supporting young people leaving care as one of its core objectives. | One of the stated policy principles is supporting young people who are leaving care. |
*Additional characteristics identified by the Council to be considered in Equality Impact Assessments.
ii. Mitigating Actions
| Negative impact | Mitigating action |
|---|---|
| Risk that language or literacy barriers disadvantage some ethnic groups. | Provide translated materials, interpreter access and community based application support. Accept applications from authorised third parties where appropriate. |
| Potential accessibility barriers for disabled, older or digitally excluded residents. | Provide telephone and face-to-face application options, Easy Read formats, assisted applications and reasonable adjustments. Ensure staff understand and apply accessibility requirements. |
| Expecting contributions from adult household members could disadvantage single parents with adult children, multi generational households, or households with hidden disabilities. | Always assess whether the non dependant is actually able to contribute and avoid assumptions. Make clear that evidence requests must remain proportionate |
iii. Monitoring and review
The Council will monitor how the Discretionary Council Tax Support Payment scheme is used to ensure support is delivered fairly, consistently and in line with the policy.
Information on applications, awards and refusals will be reviewed to identify trends, assess demand and highlight any equality impacts that require action.
The policy will be reviewed annually, with the next scheduled review due in March 2027, to ensure it remains effective and compliant with statutory duties.
D. Approval
Ian Savigar Interim Revenue and Benefit Manager – 9 April 2026
Last updated on 17/04/2026
Discretionary Housing Payment (DHP) Policy 2026/2027