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Guidance

LA Welfare Direct 1/2026

Updated 14 May 2026

Contact

If you have queries about the:

  • technical content of this bulletin, contact details are given at the end of each articleÌý
  • general content andÌýdistribution of this bulletin, contactÌýlawelfare.correspondence@dwp.gov.uk

Who should read

All Housing Benefit colleagues, County Councils and wider if appropriate

County Councils: Please note the articles at paragraphsÌý4ÌýtoÌý5,Ìý6ÌýtoÌý9ÌýandÌý10ÌýtoÌý13ÌýareÌýfor your attention.

Action

For information

Editorial

Happy New Year toÌýall ofÌýour local government colleagues and LAÌýWelfareÌýDirect bulletinÌýreaders. I hope you had a restful break over the Christmas season.Ìý

It is now back to business asÌýusual, ifÌýthis exists! For us this means a continuous journey of improvements to support local delivery and to drive out fraud and error. As you will seeÌýwithin, we continue to enhance the data we provide on Universal Credit (UC) claimants and make it more accessible through more UC data being available and the IdentifyingÌýLocalÌýVulnerabilityÌýproject. As ever, we are dependent on the support we get from you to develop and implement these solutions. WeÌýdon’tÌýget everything rightÌýall ofÌýtheÌýtimeÌýbut I hope we can look back over the last few years and recognise the tangible differences, particularly in data sharing.Ìý

I’dÌýalso like to think that we have continued to improve the way we engage with the local government sector, with namedÌýPerformanceÌýRelationshipÌýManagers understanding your business as well asÌýlistening and responding to your questions and concerns. This day-to-day intelligence is fed upÌýtoÌýsenior levels withinÌýtheÌýDepartment forÌýWork andÌýPensions. We also continue to strive for the principles of co-design where possible. Again,Ìýthe key is central and local government working together with theÌýclaimantÌýat the heart of all we do.Ìý

Changes in development or implementation in 2026 include an update to the Housing BenefitÌý(HB)ÌýAward AccuracyÌýInitiative, the launch of the Crisis and Resilience Fund and ongoing workÌýto improve the take up of Pension Credit and Pensioner HB. We are also looking at moreÌýviableÌýand effective solutions for supporting people in temporary accommodationÌýandÌýsupportedÌýaccommodation, recognising the pressures on local authority finances.Ìý

So, thank you in anticipation for your continued support and contributions over the year.Ìý

Clare ElliottÌýÌý

Head of Local Authority Partnership, Engagement and Delivery division

Have your say on proposed changes to the Discretionary Housing Payment statistics for Wales

  1. From April 2026, Discretionary Housing Payments (DHPs) in England are being merged into the Crisis and Resilience FundÌý(CRF). A new publication series onÌýCRFÌýmanagement information, including information related to Housing expenditure, is being considered as part of the policy design. As such, we are announcing that following publication of the release in July 2026 for the end of theÌýfinancial yearÌýending March 2026, the existingÌýDHP statisticsÌýwill no longer include those related to local authorities (LAs) in England.Ìý

  2. DHPs will continue to be delivered by WelshÌýLAsÌýand we are seeking feedback through aÌýÌý(asÌýoriginallyÌýplaced on DHP statistics on 18 December 2025) on whether to continue to publish DHP statistics related to the 22 LAs in Wales.ÌýPlease respond to this survey with your views byÌý15 February 2026.Ìý

  3. For further information,ÌýcontactÌýdhp.returns@dwp.gov.uk.

Searchlight update:ÌýDelay in Phase 3 Universal Credit data enhancement delivery

4. The final phase of improvements (adding housing and self-employed data) to Searchlight has been delayed due to factors outside our control. The Searchlight team is replanning delivery with the expectation that the changes will be delivered within thisÌýfinancial yearÌýending March 2026.ÌýÌý

5. Any queries should beÌýemailedÌýtoÌýlawelfare.datasharingtransformation@dwp.gov.uk.

Update:ÌýUniversal Credit Local Council Tax Reduction Version on 1 data feed decommissioned and project closed

6. On 5 January 2026, we contacted the 35ÌýLAsÌýstill receiving the Universal Credit (UC) Local Council Tax Reduction (LCTR) data feed VersionÌý1Ìý(V1)Ìýfile. Most LAs stopped using V1 in September or October 2025. Our email reminded them that V1 would be decommissioned on 12 January 2026 and asked them to get in touchÌýimmediatelyÌýif this would cause any issues.Ìý

7. We received no requests to keep V1 in place.ÌýTherefore, from 13 January 2026, all LAs will receive only the UC LCTR data feed V2 file.

What’sÌýnew in V2?

  • 73Ìý²¹»å»å¾±³Ù¾±´Ç²Ô²¹±ôÌýUCÌýdata itemsÌý

  • extra triggers to generate a file when a change of circumstances occurs

  • notifications when the UC payable amount changes, even if no other trigger applies

8. This completes the project andÌýwe’dÌýlike to take this opportunity to thank all LAs and their staff who helped us achieve this, especially:

  • our LAÌýworkingÌýgroup membersÌý

  • Wakefield Council, the first to test and go live with V2Ìý

  • everyone involved in sampling, both for the originalÌýbusinessÌýcase and to confirm our goals were met

9. The Local Government Data Sharing Transformation team always welcomes feedback and can be contacted atÌýlawelfare.datasharingtransformation@dwp.gov.uk.

Identifying Local Vulnerability update: Progress toward a Minimum Viable Product

10. As advised inÌýLAWD12/2025, we recently held an engaging meeting with ourÌýLAÌýworking group members. We shared an update on the Identifying Local VulnerabilityÌý(ILoV)Ìýdata-sharing product, including itsÌýcurrent statusÌýand the next steps toward delivering a Minimum Viable Product (MVP).Ìý

11. Building on the options appraisal meeting held internally in late November 2025, we are planning a workshop with Department for Work and Pensions Digital colleagues. This session will focus on detailed next steps now that we have agreed on a high-level strategic solution that aligns with LA requirements.Ìý

12. The team will continue to commit to its co-design principles, working closely with LAs through to delivery of the MVP and beyond.Ìý

13. If you have any queries aboutÌýILoV, contactÌýlawelfare.datasharingtransformation@dwp.gov.uk.

Practitioners’ÌýOperational Group and Local Authority Welfare Steering Group

14. The last Practitioners’ Operational Group meeting took place on 18 December 2025. Agenda items included:

  • the Budget 2025Ìý
  • CRF
  • supported housingÌý
  • LAÌýfunding
  • bringing the administration together for Housing BenefitÌý(HB)Ìýand Pension Credit
  • policy exploration focused on legacy HB (particularly for those in temporary accommodation and supported accommodation)
  • move toÌýUCÌý
  • cost of livingÌý

15. Both groups’ meetings are held bi-monthly (and alternately), so the next Local Authority Welfare Steering Group meeting is scheduled to take place on 22 January 2026.Ìý

16. If you have any questions regarding topics raised at these consultation groups, email lawelfare.correspondence@dwp.gov.uk.

HB Decisions by the Upper Tribunal

17. Decision Making and Appeals (DMA) Leeds is not aware of any cases that have been decided by the Upper Tribunal (UT).Ìý

18. AÌýselectionÌýof decisions of the UTÌýareÌýpublishedÌýon their website. Do be aware that there is an undefined time lapse between decisions being issued and their appearance on the website.Ìý

19. ÌýIf you have any queries about cases before the UT Judges or courts, please contact us by email atÌýquarryhouse.dmaleedscustomersupportservices@dwp.gov.uk.

HB cases awaiting decision by the UT

20. DMA Leeds hasÌýnot been made aware of any HB case thatÌýisÌýawaiting decision by the Upper Tribunal.

NewÌýLegislation

21. TheÌýfollowingÌýStatutory Instruments (SIs)ÌýhaveÌýbeen laid:ÌýÌý

  • 2025 No.Ìý1287 – The Childcare (Free of Charge for Working Parents) (England) (Amendment)ÌýRegulations 2025, made on 9 December 2025Ìý

  • 2025 No. 1331 – The Data (Use and Access) Act 2025 (Consequential and Other Amendments) Regulations 2025, made onÌý15 December 2025Ìý

  • 2025 No. 1354 – TheÌýRenters’ Rights Act 2025 (Commencement No. 1) Regulations 2025, made onÌý18 December 2025Ìý

  • 2025 No.Ìý1358 – The Infected Blood Compensation Scheme (Amendment) Regulations 2025, made onÌý16 December 2025Ìý

  • 2026 No. 3 – Employment Rights Act 2025 (Commencement No. 1 and Transitional and Savings Provisions) Regulations 2026, made on 5 January 2026Ìý

  • 2026 No. 6 – The Universal Credit (Transitional Provisions) (Amendment) RegulationsÌý2026, made on 6 January 2026

22. Copies of SIs can now be downloaded fromÌý.

What’sÌýnew on our HB pages onÌý°Ç¸ç³Ô¹Ï

23. The following Housing Benefit items can be found on the website links shown:

Document Type Subject Link
LAWD bulletin Editorial
Refresh of the Housing Benefit Assurance Process Module X for theÌýfinancial yearÌýending March 2025 (applicable to England only)Ìý
Update: Universal Credit Searchlight enhancementsÌý
Update: Decommissioning of UC Local Council Tax Reduction Version 1 data feedÌý
Update:ÌýIdentifyingÌýLocal VulnerabilityÌý
Conversion of Employment and Support Allowance contribution-based benefit to New Style Employment and Support AllowanceÌý
The Public Authorities (Fraud,ÌýErrorÌýand Recovery) Act 2025: Consultation of the draftÌýCodes of Practice developed under the ActÌý
Pension Credit applications and awards: November 2025Ìý
Secondment opportunities in the Local Authority Partnership, Engagement and Delivery division’s Performance Development TeamÌý
Practitioners’ Operational Group and LA Welfare Steering GroupÌý
HB Decisions by the Upper TribunalÌý
New LegislationÌý
What’sÌýnew onÌýourÌýHB pagesÌýonÌýwww.gov.uk.
LAWD12/2025
Guidance Update to Module X of the Housing BenefitÌýAssurance Process. HBAP Module X: DWP reporting framework instructionÌýfor further work for the financial year ending March 2025 (applicable to England only)
Subsidy circular Discretionary Housing Payment government contribution for Welsh local authoritiesÌýfor theÌýfinancial yearÌýending MarchÌý2027 S6/2025
Adjudication circular Housing Benefit upratingÌýfor theÌýfinancial yearÌýending March 2026 A14/2025
LAWD bulletin Housing Benefit Award Accuracy Initiative: Capturing Year 6 end of year performance LAWD12/2026 lite