Housing costs on ESA deducted from April, unsure why

Lady_K

I've had a letter for changes in benefits and in the list it seems that they are deducting the money towards housing costs from early April.

There was no leaflet with it or explanation but could it be to do with bedroom tax or would they have told me that it was for this?

nannytone_2

do you get housing benefit?
do you have a spare bedroom?

possibly they are taking the 14% reduction in housing benefit straight from your ESA and paying it to your landlord?

all just guesses, need more information

cockaleekee

It sounds like SMI, rental costs are not included on the ESA calculation.

OP, do you receive help with your mortgage? If so, the calculation on the paperwork is not well laid out. In effect the SMI is added on but then deducted (as it goes direct to the lender), so you won't receive any less than expected into your bank account.

Lady_K

cockaleekee wrote: »

It sounds like SMI, rental costs are not included on the ESA calculation.

OP, do you receive help with your mortgage? If so, the calculation on the paperwork is not well laid out. In effect the SMI is added on but then deducted (as it goes direct to the lender), so you won't receive any less than expected into your bank account.

I do get help with most of the interest but not all of it. What is SMI? they have never listed it like this before but I was on income support and incapacity this time last year when the letter came until I was changed to ESA just after. They always used to list my housing payments on the letters without deducting them when I was on income support.

I'm wondering if they may have me as contribution esa but I wont have had enough contributions really but I heard that they dont help with mortgage interest payments after a year on contribution esa.

It does say at the top of 2nd page

How Employment and Support Allowance has been worked out
The Employment and Support Allowance Award

The payment of Employment and Support Allowance is based on your National Insurance Contribution records and any additional amount the law says you need to live on.

Might they have me on contribution esa?

Torry_Quine

Lady_K wrote: »

I do get help with most of the interest but not all of it. What is SMI? they have never listed it like this before but I was on income support and incapacity this time last year when the letter came until I was changed to ESA just after. They always used to list my housing payments on the letters without deducting them when I was on income support.

I'm wondering if they may have me as contribution esa but I wont have had enough contributions really but I heard that they dont help with mortgage interest payments after a year on contribution esa.

It does say at the top of 2nd page

How Employment and Support Allowance has been worked out
The Employment and Support Allowance Award

The payment of Employment and Support Allowance is based on your National Insurance Contribution records and any additional amount the law says you need to live on.

Might they have me on contribution esa?

If you were on IB then you will have been put on contribution based ESA with IS replaced with an income based ESA top-up.

cockaleekee

Lady_K wrote: »

I do get help with most of the interest but not all of it. What is SMI? they have never listed it like this before but I was on income support and incapacity this time last year when the letter came until I was changed to ESA just after. They always used to list my housing payments on the letters without deducting them when I was on income support.

I'm wondering if they may have me as contribution esa but I wont have had enough contributions really but I heard that they dont help with mortgage interest payments after a year on contribution esa.

It does say at the top of 2nd page

How Employment and Support Allowance has been worked out
The Employment and Support Allowance Award

The payment of Employment and Support Allowance is based on your National Insurance Contribution records and any additional amount the law says you need to live on.

Might they have me on contribution esa?

If you were on Incapacity and IS before you will have been migrated to contributions based ESA with an income based top up.

SMI is Support for Mortgage Interest.

You should be receiving the same amount now as you were before. Does it look like you are?

Lady_K

In the letter the top of the page calculations are about the same as before to include mortgage interest but then below when it says deductions taken from your employment and support allowance for housing costs then it reduces the amount I'm going to get by that amount per week from April.

That total is about the same as I get each week to my bank account but not enough to cover the mortgage interest.

I called the mortgage company who said they have heard nothing from them so I'm hoping that you will be right and things wont change, It would seem odd not to inform me more clearly if it were to effect my mortgage interests.

Will I stay on contribution esa with income based top up?

Torry_Quine

Lady_K wrote: »

In the letter the top of the page calculations are about the same as before to include mortgage interest but then below when it says deductions taken from your employment and support allowance for housing costs then it reduces the amount I'm going to get by that amount per week from April.

That total is about the same as I get each week to my bank account but not enough to cover the mortgage interest.

I called the mortgage company who said they have heard nothing from them so I'm hoping that you will be right and things wont change, It would seem odd not to inform me more clearly if it were to effect my mortgage interests.

Will I stay on contribution esa with income based top up?

If you are in the WRAG then you only get contribution based for one year and then will only be eligible for income based. If the support group then there is no time limit.

Lady_K

cockaleekee wrote: »

It sounds like SMI, rental costs are not included on the ESA calculation.

OP, do you receive help with your mortgage? If so, the calculation on the paperwork is not well laid out. In effect the SMI is added on but then deducted (as it goes direct to the lender), so you won't receive any less than expected into your bank account.

So basically its normal for them to now deduct the housing costs from the letters if its paid direct to mortgage company? They didnt do this on the income support ib letters before though. If thats what they do now they need to make it clearer. All they need to do it state that this amount will be paid direct to the mortgage.

I wont feel ok until I know its still going in if it does but that means I have to wait till April.

I am in the support group

cockaleekee

Lady_K wrote: »

So basically its normal for them to now deduct the housing costs from the letters if its paid direct to mortgage company? They didnt do this on the income support ib letters before though. If thats what they do they need to male it clearer. All they need to do it state that this amount will be paid direct to the mortgage.

I wont feel ok until I know its still going in if it does but that means I have to wait till April.

I am in the support group

Yes, it's normal. They did used to do it on the IS letters.