Commentary on provisions of Act Section 25: Discretionary housing payments
This section amends Section F1 (social security schemes) in Part 2 of Schedule 5 to the Scotland Act 1998 to confer on the Scottish Parliament legislative competence in relation to discretionary housing payments ("DHPs").
	DHPs are administered by local authorities and provide a flexible, local mechanism for providing additional financial assistance for housing costs to Housing Benefit claimants, and Universal Credit claimants. Claimants apply to the local authority for help and the local authority makes a decision, based on their local policy. The current powers in relation to DHPs are found in sections 69 and 70 of the Child Support, Pensions and Social Security Act 2000. Pursuant to these powers the Secretary of State for Work and Pensions made the Discretionary Financial Assistance Regulations 2001 (S.I. 2001/1167) and the Discretionary Housing Payments (Grants) Order 2001 (S.I. 2001/2340).
	The section transfers legislative competence to the Scottish Parliament such that it can set up its own legislative scheme in relation to DHPs. However, any such scheme must only provide assistance with housing costs to applicants who are in receipt of either housing benefit or another reserved benefit which includes payment for rental housing costs. The prohibitions against granting DHP where the need for financial assistance with housing costs arises from a benefit suspension or sanction must be retained by any devolved legislative scheme.
	Similar to Exception 5 for top-up payments (in Section 24), the exception does not devolve competence over the provision of discretionary financial assistance as part of a reserved benefit (for example Universal Credit hardship payments).