Government Grants to Help You Clear Your Debts

If you are in rent arrears, there may be government grants available through your local council that can help clear your debt and prevent the situation from getting worse.

These are not loans. In most cases, you do not have to pay the money back.

Many people never apply simply because they don’t know this help exists.

Two Types of Grants You Should Know About

There are two main types of council funding available when you are struggling with rent arrears.

1. Discretionary Housing Payment (DHP)

A Discretionary Housing Payment, often called a DHP, is extra money provided by your council if your rent is higher than the housing support you receive.

You may be eligible if you receive:

• Housing Benefit

• Universal Credit with a housing element

  
  

DHPs can be used to help with:

• Rent arrears

• Shortfalls between rent and benefits

• Temporary financial pressure that affects your rent payments

  
  

DHPs are often awarded to stop arrears from increasing or to prevent eviction.

2. Homelessness Prevention Grant (HPG)

A Homelessness Prevention Grant is funding used by councils when someone is at risk of losing their home.

This support usually comes from the council’s Homelessness Prevention Team and is used when eviction or homelessness is a real risk.

HPGs can be used to:

• Clear rent arrears

• Make a one-off payment to stop eviction

• Help secure alternative accommodation if staying put is not possible

  
  

These grants are often larger and are used when time is critical.

Who Can Apply

You do not need to be homeless to qualify.

You may be eligible if:

• You are in rent arrears

• You have received an eviction notice

• Your landlord has started court action

• You are struggling to keep up with rent

  
  

If there is a real risk you could lose your home, councils have a legal duty to look at ways to help.

How to Apply

You can apply for both DHP and homelessness prevention support through your local council’s website.

Most councils have:

• A DHP application form

• An online homelessness or “at risk of homelessness” form

  
  

Once you apply, the council should assess your situation and decide what support is available.

Apply Early

Do not wait until court dates or bailiffs.

Councils are more likely to help earlier, when arrears are still manageable and homelessness can be prevented.

Final Thought

Being in rent arrears is stressful, but it does not automatically mean eviction.

Government grants like Discretionary Housing Payments and Homelessness Prevention Grants exist to help people through difficult financial periods and keep them housed.

If you are struggling, start with your local council’s website and apply as soon as possible.