Sheltered housing and the energy discount.

whattochoose

Manchesterlodger said:

Just done a search here on sheltered housing and the energy charge and this thread came up. Just wondering whether any sheltered housing residents have had notice of a massive hike in the energy charge? Am particularly interested in residents where the building is heated by a communal boiler as I was advised by Citizens Advice recently that tenants in these situations have no protection against the level of increase in the energy charge that the housing association choose to stipulate. Also, generally, as I understand it, tenants housing benefit does not cover the energy charge either. 


I live in sheltered housing flat with a communal boiler. Have just been informed that the energy charge is being increased from April 2023 by £35 a week. To say it's been a shock is a slight understatement. Citizens Advice have advised me to contact my local councillor and MP as tenants in my situation are not protected in terms of the level of price increase. 


I looked online and saw that this situation has already impacted some residents in Bolton: https://www.theboltonnews.co.uk/news/23258111.bolton-home-residents-hit-dramatic-energy-bill-hike/


In the situation I'm in, the communal boiler is old and has a history of breaking down regularly - so tenants are probably paying over the odds for energy to begin with due to the inefficiency of the boiler. Service engineers have come out to fix it have often commented that the boiler needs replacing. The housing association, to date, has chosen not to do replace it. 


Many people who live in sheltered housing have very low incomes and I've been told informally that many tenants have indicated that they cannot afford the increase. I'm not quite sure what to do beyond taking the issue to my local councillor and MP. 


Just thought I would post this here to highlight the issue - and if anyone has any other links to organisations that can help/suggestions, do post. Thanks. 
  

Hi. I live in the Greater Manchester area, and like yourself, live in sheltered housing.
My heating and hot water charge has risen from £17.49 to £56.61 a month.
With other increases my overall rent is now £597.05 a month, an increase of £83.98.
I claim no benefits, so will just have to pay. I'm of an age where the prospect of moving is not something I relish, so I just have to accept my savings will depreciate more than I had anticipated, and there may come a time when I have to avail myself of the benefits system.
I'm guessing others may face this prospect if they're not doing this already.

whattochoose

This article in the Guardian touches on the problem....
https://www.theguardian.com/business/2022/aug/21/we-are-being-abandoned-when-the-energy-bill-goes-up-by-100000-a-day

Nebulous2

I've an acquaintance who has recently moved into sheltered housing, who generally has been quite happy. 

However the costs are a huge concern. They pay for communal heating and pay their own electric, using a meter. 

The housing association has indicated that they are just coming to the end of a 3 year fix for gas, and although figures haven't been given yet they should anticipate costs quadrupling. Its currently £30 a month and could rise to £120 from 1st April.  

They have also been told the service charge is likely to have a substantial increase. 

Manchesterlodger

whattochoose said:

Manchesterlodger said:

Just done a search here on sheltered housing and the energy charge and this thread came up. Just wondering whether any sheltered housing residents have had notice of a massive hike in the energy charge? Am particularly interested in residents where the building is heated by a communal boiler as I was advised by Citizens Advice recently that tenants in these situations have no protection against the level of increase in the energy charge that the housing association choose to stipulate. Also, generally, as I understand it, tenants housing benefit does not cover the energy charge either. 


I live in sheltered housing flat with a communal boiler. Have just been informed that the energy charge is being increased from April 2023 by £35 a week. To say it's been a shock is a slight understatement. Citizens Advice have advised me to contact my local councillor and MP as tenants in my situation are not protected in terms of the level of price increase. 


I looked online and saw that this situation has already impacted some residents in Bolton: https://www.theboltonnews.co.uk/news/23258111.bolton-home-residents-hit-dramatic-energy-bill-hike/


In the situation I'm in, the communal boiler is old and has a history of breaking down regularly - so tenants are probably paying over the odds for energy to begin with due to the inefficiency of the boiler. Service engineers have come out to fix it have often commented that the boiler needs replacing. The housing association, to date, has chosen not to do replace it. 


Many people who live in sheltered housing have very low incomes and I've been told informally that many tenants have indicated that they cannot afford the increase. I'm not quite sure what to do beyond taking the issue to my local councillor and MP. 


Just thought I would post this here to highlight the issue - and if anyone has any other links to organisations that can help/suggestions, do post. Thanks. 
  

Hi. I live in the Greater Manchester area, and like yourself, live in sheltered housing.
My heating and hot water charge has risen from £17.49 to £56.61 a month.
With other increases my overall rent is now £597.05 a month, an increase of £83.98.
I claim no benefits, so will just have to pay. I'm of an age where the prospect of moving is not something I relish, so I just have to accept my savings will depreciate more than I had anticipated, and there may come a time when I have to avail myself of the benefits system.
I'm guessing others may face this prospect if they're not doing this already.

Thank you for responding - really useful to know others are also facing this issue. 

Like you I claim no benefits - I work f/t and have too much savings to receive benefits. 

However, due to the increase I think I am likely to have to draw on my savings. 

I've yet to receive the cost breakdown from the housing association. My rent is also going up by 7% (which I anticipated). 
I currently pay £87.68 per week rent component and £55.69 service charge component. So my weekly rent is £143.37. I pay monthly and that currently works out at £621.27 a month. I then have council tax and utility bills on top.

I calculated what the new figures would be with the 7% increase in rent and an increase in the energy charge to £35 per week. Monthly it's going to work out at around £799.50 for me (could be more - I won't know until I receive the figures from the housing association but I haven't factored in an increase in the communal water charge just the communal heating charge increase). 

I then pay council tax, personal electricity, internet (I have to work from home part of the time and require it for work), mobile phone, contents insurance and personal water. Factoring in the price rises for these as well, it means that my total rent and bills before food and any other living costs like transport, health prescriptions, clothing etc is conservatively going to be £996.63.

I take home around £1,667.00 a month in income. 

It means that my basic essential bills are now 60% of my income and may be more if other charges are increased.

With food prices having gone up, I've found myself spending a lot more on food per month (though am actively seeking to reduce costs more now).

I am genuinely worried about the impact it's going to have on me but also wondering how on earth people who are on a lot less (like pension credit) are going to afford it - my understanding is that the energy charge isn't eligible for housing benefit support. How are people supposed to suddenly find an extra £140 a month? (35 x 4) - and that's a conservative figure.  

Manchesterlodger

Nebulous2 said:

I've an acquaintance who has recently moved into sheltered housing, who generally has been quite happy. 

However the costs are a huge concern. They pay for communal heating and pay their own electric, using a meter. 

The housing association has indicated that they are just coming to the end of a 3 year fix for gas, and although figures haven't been given yet they should anticipate costs quadrupling. Its currently £30 a month and could rise to £120 from 1st April.  

They have also been told the service charge is likely to have a substantial increase. 

Thank you for this. If you find out from them what their new charges are going to be, please post (if you can). I understand that energy costs have increased but I am just speechless at the amount and also wonder how people are going to manage. 

whattochoose

The only upside of recent events (if there is one) is that banks and financial institutions are now offering greater interest rates to savers, as a result of interest rates going up.
I realise not everybody is in my position, but I have been able to take out a fixed saver account for 2 years with these...
https://www.fordmoney.co.uk/
The interest will be paid monthly into a bank account I've nominated. That, added to the 10% state pension I'll be getting this year, should hopefully cover most of the increases I face this year.
I've got my fingers crossed that this year's increases will be a one-off. 
If they're not that will indeed be very worrying.

Manchesterlodger

whattochoose said:

The only upside of recent events (if there is one) is that banks and financial institutions are now offering greater interest rates to savers, as a result of interest rates going up.
I realise not everybody is in my position, but I have been able to take out a fixed saver account for 2 years with these...
https://www.fordmoney.co.uk/
The interest will be paid monthly into a bank account I've nominated. That, added to the 10% state pension I'll be getting this year, should hopefully cover most of the increases I face this year.
I've got my fingers crossed that this year's increases will be a one-off. 
If they're not that will indeed be very worrying.

It's good that you are in that position. I'm unlikely ever to be able to afford to retire but I hope I will be in a position to work p/t from 70!

I applied for sheltered accommodation in 2020 because I was advised that I wouldn't have to wait so long to be allocated somewhere - whereas the council housing waiting list was much much longer (I turn 60 this year). At that time, I was living in a house share with 20 and 30 year olds which was not easy. So when I was offered the sheltered housing I took it even though I've had to pay a service charge for services I don't use (such as a personal alarm system) as the alternative was staying on the council waiting list likely for another few years.

When I moved in the rent was less than renting privately for a flat on my own (which I would not be able to afford) but more than the rent for a council property. However, I did not foresee the service charge increasing like this and as council properties have much lower rents, I am now in a situation which is not good financially.

I don't know quite what I'm going to do to be honest. It's just not sustainable for me long term. But equally I don't want to go back to a house share. And, from talking to colleagues who are in house shares, the rent rate per room has increased so much that they are paying a heck of a lot each month as well. I am looking to see whether I can find a job that pays more but, as I'm older, that in itself may be challenging.   

whattochoose

Manchesterlodger said:

whattochoose said:

The only upside of recent events (if there is one) is that banks and financial institutions are now offering greater interest rates to savers, as a result of interest rates going up.
I realise not everybody is in my position, but I have been able to take out a fixed saver account for 2 years with these...
https://www.fordmoney.co.uk/
The interest will be paid monthly into a bank account I've nominated. That, added to the 10% state pension I'll be getting this year, should hopefully cover most of the increases I face this year.
I've got my fingers crossed that this year's increases will be a one-off. 
If they're not that will indeed be very worrying.

It's good that you are in that position. I'm unlikely ever to be able to afford to retire but I hope I will be in a position to work p/t from 70!

I applied for sheltered accommodation in 2020 because I was advised that I wouldn't have to wait so long to be allocated somewhere - whereas the council housing waiting list was much much longer (I turn 60 this year). At that time, I was living in a house share with 20 and 30 year olds which was not easy. So when I was offered the sheltered housing I took it even though I've had to pay a service charge for services I don't use (such as a personal alarm system) as the alternative was staying on the council waiting list likely for another few years.

When I moved in the rent was less than renting privately for a flat on my own (which I would not be able to afford) but more than the rent for a council property. However, I did not foresee the service charge increasing like this and as council properties have much lower rents, I am now in a situation which is not good financially.

I don't know quite what I'm going to do to be honest. It's just not sustainable for me long term. But equally I don't want to go back to a house share. And, from talking to colleagues who are in house shares, the rent rate per room has increased so much that they are paying a heck of a lot each month as well. I am looking to see whether I can find a job that pays more but, as I'm older, that in itself may be challenging.   

I am sorry for the position you find yourself in.
The future is so uncertain, but I'm hoping this years eye watering increases are a one-off and will not be repeated.
Let's see where we are this time next year.
Good luck.

luvchocolate

I live in a housing association flat for over 55s. This is not sheltered so rent is not including those things. 
We do have a communal laundry which is brilliant and gardeners. 
Rent is £81 per week and service charge include within that amount is £7 per week. 
Yes it's going up 7% in April but so much cheaper than private and more secure tenancy. 
Maybe this would be an alternative 

Manchesterlodger

luvchocolate said:

I live in a housing association flat for over 55s. This is not sheltered so rent is not including those things. 
We do have a communal laundry which is brilliant and gardeners. 
Rent is £81 per week and service charge include within that amount is £7 per week. 
Yes it's going up 7% in April but so much cheaper than private and more secure tenancy. 
Maybe this would be an alternative 

That sounds much more reasonable financially. I have not heard of these in the area I live in (Manchester). It mostly seems to be either sheltered housing (over 55's) or regular council housing which has extremely long waiting lists. Part of the issue for me now is that, under the council regulations, I would be viewed as "housed" as I am living in housing association sheltered housing - so if I were to go back on the council housing waiting list, I would have to wait far longer to be considered again. I will have to do something though because in the long term, the current increase really is not sustainable for me.