In November 2025, the UK Government announced that the two-child limit will be removed from 1 April 2026. This means families in receipt of Universal Credit will receive the child element for every child, regardless of family size.
However, this also means some households may become newly affected by the benefit cap. Some will see deductions on their Universal Credit award for the first time and may not be aware that Discretionary Housing Payments are available in Scotland to help mitigate the impact.
Discretionary Housing Payments (DHPs) offer additional financial support to households receiving Housing Benefit or the housing element of Universal Credit who need help meeting their housing costs. In Scotland, DHPs are used to mitigate the impacts of the benefit cap as well as the bedroom tax and to provide financial assistance with a range of other housing related costs.
The Scottish Government has increased DHP funding in 2026/27 to ensure households newly affected by the benefit cap receive support.
It is important that anyone eligible for a DHP receives one. Below are key messages to support your engagement with service users that you may wish to draw upon.
What is the benefit cap and how do I know if I have been affected?
The benefit cap is a limit on the total amount of certain benefits a household can receive. If the cap applies to you, your Universal Credit statement will show a deduction. You may also receive a notification from the Department for Work and Pensions (DWP).
What are Discretionary Housing Payments?
DHPs are payments made by local councils to help with housing costs. In Scotland, DHPs are used to mitigate the impact of the benefit cap for eligible households.
Am I eligible for a Discretionary Housing Payment?
You should be eligible if you receive Housing Benefit or the housing element of Universal Credit and have been affected by the benefit cap.
You can apply directly through your local council. Most councils have an online application form, and local advice services can assist if you need help.
Where can I find further information?
Visit mygov.scot, your local council’s website or contact a welfare rights or housing advice service for guidance and support.
If you are affected by the benefit cap, you may be entitled to a Discretionary Housing Payment (DHP).
DHPs can cover deductions caused by the benefit cap for eligible households in Scotland.
Check your Universal Credit statement and contact your local council to apply.
The Scottish Government has increased funding to support families newly affected from 1 April 2026.
