What are discretionary housing payments? Discretionary Housing Payments (DHPs) provide people with financial assistance when help with housing costs is needed. It is a Grant and must be applied for every year. It is allocated according to priorities set by your local council. The Government is expecting local councils to use discretionary housing payment schemes to prioritise help for disabled people affected by the bedroom tax. However, there are no guarantees that there will be enough monies in the pot for everyone or how long the fund will last.