Benefit to provide support for service charges

DanielDeronda

Hello

I'm currently receiving contributions based JSA, I own my own flat (mortgage free) but as a leaseholder, I have to pay service charges (covering maintenance of the building, all communal areas & any payments needed for ad-hoc projects). I also pay £15 ground rent.

Service charges are about £1850 per annum.

Is there any chance of me getting any benefit to support my service charges payment? I've seen there's something under Universal Credit but my savings likely to be over threshold to receive UC.

Ames

The first thing is to check what the UC status is in your area, whether it's full service or live service.

Service charges can be paid via housing benefit, though I don't know if you have to be getting help with rent as well. If your savings are too high for UC then they'll be too high for HB. (To be clear, that's above £16,000. Between £6,000 and £16,000 it's reduced on a sliding scale. Below £6,000 you get full benefit. Property that you own but don't live in counts as savings).

pmlindyloo

Ames wrote: »

The first thing is to check what the UC status is in your area, whether it's full service or live service.

Service charges can be paid via housing benefit, though I don't know if you have to be getting help with rent as well. If your savings are too high for UC then they'll be too high for HB. (To be clear, that's above £16,000. Between £6,000 and £16,000 it's reduced on a sliding scale. Below £6,000 you get full benefit. Property that you own but don't live in counts as savings).

I wouldn't check about whether you are in a full service area until you know whether you are eligible for means tested benefits, either income based JSA or UC both of which have savings/capital limits as outlined above and both can include help with some service charges.

So how much do you have in savings?

DanielDeronda

Savings are currently £17k but have debts on credit cards of around £21k, which I'm looking to reduce with my savings.
I do have a Universal Credit account online.

elsien

Do you not think that paying the priority debts such as service charges to keep a roof over your head should take precedence over paying down credit card debt?

DanielDeronda

That's what I need to know: do I keep my savings to pay off priority debts or do I reduce my credit card debt. I don't want to start paying interest or missing payments on the credit cards. I have potentially negotiated a 2-3 month payment holiday on my service charges.

poppy12345

DanielDeronda wrote: »

Savings are currently £17k but have debts on credit cards of around £21k, which I'm looking to reduce with my savings.
I do have a Universal Credit account online.

This could be classed as deprivation of capital.

pmlindyloo

You can pay off debts on Universal Credit and not be accused of deprivation of capital.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/618960/admh1.pdf

H1833

You would need to be careful about settling some of your debts (pay the ones with the highest interest first) and leaving yourself with an emergency fund.

Service charges are given through the housing element of UC. As you are an owner occupier I would be inclined to check by telephoning the Universal Credit helpline and asking if you can make a claim based solely on service charges. (Do have a breakdown of the service charges in case they ask about these)

DanielDeronda

All my cards are on various 0% deals so will pay off the 1 with the earliest end to the deal & it's the largest repayment. This is about 8k of the 21k total. Other 4 cards are towards end of 2018 going into 2019. Will I be able to apply for both new style JSA & UC? I have contacted UC helpline & they're looking at my service charges request. I have the accounts for the service charges for 2017. Just seem to get conflicting information.

BorisThomson

How long are you expecting to be out of work for? The steps you're considering are only going to benefit you if you expect to be out of work in the long term. Do you have barriers to work that make this a possibility?

DanielDeronda

I don't believe I have any reason I can't get a job in the short-term. Actively looking for a job since beginning of 2018. I need to find any job in the short term to boost my income, but can still look for my ideal role in the meantime. But feel over qualified: degree, 15yrs+ experience, but now 45.