How do they calculate dads costs on old/new system?

ANNIEHAHA

Just wondered if anyone can tell me how they calculate the housing costs for the dad
what other household bill they take into account ?
If your pension is in a property that is let ,can they take this into account ?
travelling to work costs ?

I just need to know so I can be sure they have calculated correctly before I forward to MP

kelloggs36

I take it you mean under CS1 (the old system) as there are no such allowances under the new system.

Housing costs under the old system:

The only housing costs allowed are those where the NRP lives on a day to day basis. If they live with parents, there are no allowable housing costs.

It might be easier if you PM me with the details where I can advise you better.

kelloggs36

If a house is a property that is let, Under CS1 any income that can be counted is that over and above the costs involved in paying the mortgage on it. So, for example, if the mortgage on the property was 900 quid per month, and he got 1000 per month for rent, then 100 pounds per month would be added to his net income and used in the assessment. The rest is disregarded. Just checking for CS2 with respect to income.

kelloggs36

Under CS1 travel to work costs are allowed for mileage over 150 per week as the crow flies at a rate of 10p per mile but there is the possibility of getting a Departure on the grounds of high travel to work costs - not allowable under CS2

kelloggs36

Under CS2 if the NRP has another property you can advise that the NRP has assets capable of producing an income under a Variation. The assets would be what is left over after any mortgage is paid up. EG NRP has a house worth 200k and an outstanding mortgage on it of 100k, so the assets are 100k. In any case the assets have to be worth 65k or more. They don't take account any income from renting out the property like they do in CS1.

kelloggs36

they do not take any other bills into consideration, other than Council tax which forms part of the housing costs for Protected Income purposes. Any food, utilities etc are disregarded as there is already an allowance within the personal allowance for these things - admittedly the allowance is small, as it is the same as Income Support rates but if on Income Support a person would be expected to pay all their bills out of this money and would not get any more even if bills are high.

kelloggs36

Oh, and housing costs are calculated depending on whether it is rent or mortgage. If a mortgage, when calculating Exempt Income both the capital and interest payments are included, BUT no Council Tax, but for Protected Income only the Interest is allowed but council tax is allowed. So it is necessary to know the interest rate and the amount outstanding on the mortgage when the maintenance was calculated.

Also, housing costs can be capped to 50% of the NRP's net income if there are no children in the household. This cap does not apply if there are children. So, if the NRP takes home 300 pounds per week and they are a single person, their housing costs are limited to 150 pounds per week. They can also have life insurance included as housing costs, provided it is linked to the mortgage. For rent, the full rent is allowed except for certain service charges and water charges.

TheWaltons_3

On the new system.. no housing costs are taken into account for the Dad.

It is 15% of his wage for 1 child... and so on...

ANNIEHAHA

Thanks for all your feedback