Bond to secure housing

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    I have been asked if we can make Discretionary Housing Payments to pay for bonds to secure better properties for homeless families in need of supported accommodation.

    I have checked the DFA regs and Reg 2 states that you can make payments if they need further financial assistance in order to meet “housing cost” (as long as make claim and iro HB and /or CTB). Reg 4 seems to imply that we can do this if we make a lump sum payment.

    What adds to my confusion is that this payment will be made to another Department within the council who will hold it until the end of the tenancy. If damage etc has been done to the property the bond will be paid out to the landord, if not, this Department will keep the payment.

    Any advice would be very welcome.


    I don’t know about anyone else but my gut instinct is that I would not make awards to cover bonds since I wouldn’t be able to make an award of HB to cover them. I can understand why you probably would like to do it but don’t believe this is what the DHP scheme was set up for.

    Doesn’t the other Department have some sort of scheme to allow tenants to make payments by installments, and if not might this not be a good suggestion to incorporate in some kind of poverty reduction strategy.


    I wouldn’t consider it. Also I know that our software wouldn’t allow a lump sum to be paid from the fund, other than a backdated award.

    It would also be a nightmare monitoring the budget, what if they vacated with no damage and the money was returned to you in the following financial year.

    As far as I understand it the fund is to provide help when a customer is struggling with the rent or Council Tax liability not for bonds or deposits.


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