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<p>We regularly engage with local authorities in relation to Discretionary Housing
Payments (DHPs), this includes discussions on Local Housing Allowance (LHA) rates.</p><p>
</p><p>DHPs can be paid to those entitled to Housing Benefit or the housing element
of Universal Credit who face a shortfall in meeting their housing costs, including
those in the private rented sector whose LHA maximum rate does not cover the full
amount of their rent. Local authorities have broad discretion to spend in line with
their local priorities, supported by non-statutory guidance, which provides a list
of priority groups to assist with their decision making.</p><p> </p><p>Funding for
LHA rates was boosted by almost £1bn in 2020/21 and rates have been maintained in
cash terms at their increased levels for 2021/22.</p><p> </p><p>Local authorities
are notified annually of the total amount allocated to each authority. For 2021-22
the Government has made available £140m in DHP funding for local authorities in England
and Wales to distribute to help support vulnerable people with housing costs.</p>
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