Guidance

LA Welfare Direct 1/2026

Published 30 January 2026

Contact

If you have queries about the:

• technical content of this bulletin, contact details are given at the end of each article 
• general content and distribution of this bulletin, contact lawelfare.correspondence@dwp.gov.uk

Who should read

All Housing Benefit colleagues, County Councils and wider if appropriate

County Councils: Please note the articles at paragraphs 4 to 5, 6 to 9 and 10 to 13 are for your attention.

Action

For information

Editorial

Happy New Year to all of our local government colleagues and LA Welfare Direct bulletin readers. I hope you had a restful break over the Christmas season. 

It is now back to business as usual, if this exists! For us this means a continuous journey of improvements to support local delivery and to drive out fraud and error. As you will see within, 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 Identifying Local Vulnerability project. As ever, we are dependent on the support we get from you to develop and implement these solutions. We don’t get everything right all of the time but I hope we can look back over the last few years and recognise the tangible differences, particularly in data sharing. 

I’d also like to think that we have continued to improve the way we engage with the local government sector, with named Performance Relationship Managers understanding your business as well as listening and responding to your questions and concerns. This day-to-day intelligence is fed up to senior levels within the Department for Work and Pensions. We also continue to strive for the principles of co-design where possible. Again, the key is central and local government working together with the claimant at the heart of all we do. 

Changes in development or implementation in 2026 include an update to the Housing Benefit (HB) Award Accuracy Initiative, the launch of the Crisis and Resilience Fund and ongoing work to improve the take up of Pension Credit and Pensioner HB. We are also looking at more viable and effective solutions for supporting people in temporary accommodation and supported accommodation, recognising the pressures on local authority finances. 

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

Clare Elliott  

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 Fund (CRF). A new publication series on CRF management 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 the financial year ending March 2026, the existing DHP statistics will no longer include those related to local authorities (LAs) in England. 

2. DHPs will continue to be delivered by Welsh LAs and we are seeking feedback through a consultation survey (as originally placed on DHP statistics on 18 December 2025) on whether to continue to publish DHP statistics related to the 22 LAs in Wales. Please respond to this survey with your views by 15 February 2026. 

3. For further information, contact dhp.returns@dwp.gov.uk.

Searchlight update: Delay 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 this financial year ending March 2026.  

5. Any queries should be emailed to lawelfare.datasharingtransformation@dwp.gov.uk.

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

6. On 5 January 2026, we contacted the 35 LAs still receiving the Universal Credit (UC) Local Council Tax Reduction (LCTR) data feed Version 1 (V1) file. 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 touch immediately if this would cause any issues. 

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

What’s new in V2?

• 73 additional UC data items 

• 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 and we’d like to take this opportunity to thank all LAs and their staff who helped us achieve this, especially:

• our LA working group members 

• Wakefield Council, the first to test and go live with V2 

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

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

Identifying Local Vulnerability update: Progress toward a Minimum Viable Product

10. As advised in LAWD12/2025, we recently held an engaging meeting with our LA working group members. We shared an update on the Identifying Local Vulnerability (ILoV) data-sharing product, including its current status and the next steps toward delivering a Minimum Viable Product (MVP). 

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. 

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

13. If you have any queries about ILoV, contact lawelfare.datasharingtransformation@dwp.gov.uk.

Practitioners’ Operational 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 2025 
• CRF
• supported housing 
• LA funding
• bringing the administration together for Housing Benefit (HB) and Pension Credit
• policy exploration focused on legacy HB (particularly for those in temporary accommodation and supported accommodation)
• move to UC 
• cost of living 

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. 

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). 

18. A selection of decisions of the UT are published on their website. Do be aware that there is an undefined time lapse between decisions being issued and their appearance on the website. 

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

HB cases awaiting decision by the UT

20. DMA Leeds has not been made aware of any HB case that is awaiting decision by the Upper Tribunal.

New Legislation

21. The following Statutory Instruments (SIs) have been laid:  

• 2025 No. 1287 – The Childcare (Free of Charge for Working Parents) (England) (Amendment) Regulations 2025, made on 9 December 2025 

• 2025 No. 1331 – The Data (Use and Access) Act 2025 (Consequential and Other Amendments) Regulations 2025, made on 15 December 2025 

• 2025 No. 1354 – The Renters’ Rights Act 2025 (Commencement No. 1) Regulations 2025, made on 18 December 2025 

• 2025 No. 1358 – The Infected Blood Compensation Scheme (Amendment) Regulations 2025, made on 16 December 2025 

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

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

22. Copies of SIs can now be downloaded from legislation.gov.uk.

What’s new on our HB pages on GOV.UK

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 the financial year ending March 2025 (applicable to England only)  Update: Universal Credit Searchlight enhancements  Update: Decommissioning of UC Local Council Tax Reduction Version 1 data feed  Update: Identifying Local Vulnerability  Conversion of Employment and Support Allowance contribution-based benefit to New Style Employment and Support Allowance  The Public Authorities (Fraud, Error and Recovery) Act 2025: Consultation of the draft Codes of Practice developed under the Act  Pension Credit applications and awards: November 2025  Secondment opportunities in the Local Authority Partnership, Engagement and Delivery division’s Performance Development Team  Practitioners’ Operational Group and LA Welfare Steering Group  HB Decisions by the Upper Tribunal  New Legislation  What’s new on our HB pages on www.gov.uk.	LAWD12/2025
Guidance	Update to Module X of the Housing Benefit Assurance Process.	HBAP Module X: DWP reporting framework instruction for further work for the financial year ending March 2025 (applicable to England only)
Subsidy circular	Discretionary Housing Payment government contribution for Welsh local authorities for the financial year ending March 2027	S6/2025
Adjudication circular	Housing Benefit uprating for the financial year ending March 2026	A14/2025
LAWD bulletin	Housing Benefit Award Accuracy Initiative: Capturing Year 6 end of year performance	LAWD12/2026 lite