HB does it cover service charge in sheltered housing?
fc123
Posts: 6,573 Forumite
Hi as per the title, my MIL has been offered a sheltered housing flat (and it's perfect and she wants to accept it though the official viewing isn't until next Tuesday) however the rent and service charge is cut up as follows;
Rent; £131.42
Service charge; £59.
She is currently in a private rental and the LHA for the area for 1 person is £161.02 pwk.
The flat she has been offered is 2 bed, though she put 1 bed reqd on the form and has been assisted throughout this whole process by a care-worker. They know she is single so I can't see they have made an error.
She is fretting about the service charge as she is on state pension and pension credit.
I have googled and come across something called 'Supported people grant'. Does she claim this? Or would she receive the LHA of £161.02 and then have to top it up out of her pension income?
The sheltered housing is new build and has been offered through the council but is a HA I think.
Rent; £131.42
Service charge; £59.
She is currently in a private rental and the LHA for the area for 1 person is £161.02 pwk.
The flat she has been offered is 2 bed, though she put 1 bed reqd on the form and has been assisted throughout this whole process by a care-worker. They know she is single so I can't see they have made an error.
She is fretting about the service charge as she is on state pension and pension credit.
I have googled and come across something called 'Supported people grant'. Does she claim this? Or would she receive the LHA of £161.02 and then have to top it up out of her pension income?
The sheltered housing is new build and has been offered through the council but is a HA I think.
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Comments
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She would need to get a full breakdown of the service charge as some will likely be covered by HB.
Tom0 -
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Does your local council have a web site explaining what's included in the service charges? I've had a look on the shelter web site and things like lift repairs are included but others like care alarms are not.
I don't know if this new rule will be implemented in the future but there's media reports of pensioners being included for what is commonly known as the bedroom tax.
http://www.independent.co.uk/news/uk/politics/bedroom-tax-pensioners-social-housing-housing-crisis-council-houses-a7340136.html?amp
If I was a pensioner I would take the flat regardless of the service charge and possible spare bedroom charges and see if I could cut costs elsewhere in my budget. It's got to be more secure than a private rental. If at a later date that I couldn't manage my budget then at least I would be able to do a house exchange with someone. I would hold the trump card as I would not be living in a brand new house and I don't think I would be short of offers for a house swap, I would get the pick of the crop so to speak.
Hope everything works out well with whatever choice is made.0 -
Does your local council have a web site explaining what's included in the service charges? I've had a look on the shelter web site and things like lift repairs are included but others like care alarms are not.
I don't know if this new rule will be implemented in the future but there's media reports of pensioners being included for what is commonly known as the bedroom tax.
http://www.independent.co.uk/news/uk/politics/bedroom-tax-pensioners-social-housing-housing-crisis-council-houses-a7340136.html?amp
If I was a pensioner I would take the flat regardless of the service charge and possible spare bedroom charges and see if I could cut costs elsewhere in my budget. It's got to be more secure than a private rental. If at a later date that I couldn't manage my budget then at least I would be able to do a house exchange with someone. I would hold the trump card as I would not be living in a brand new house and I don't think I would be short of offers for a house swap, I would get the pick of the crop so to speak.
Hope everything works out well with whatever choice is made.
exchanging wouldn't be so easy as sheltered housing is for specific groups only0 -
you would not get LHA for a HA property. It would be HB.0
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I work at a retirement development and one of the residents receives financial assistance with paying the service charge and that is for a bought property so there must be help out there for people renting.
I'm afraid I'm not sure what help it is they receive but they send off the service charge cost info every 6 months.
I thought the bedroom tax didn't apply to pensioners?0 -
you would not get LHA for a HA property. It would be HB.
No, she wouldn't
Housing Benefit is the name for the service that helps the council pay rents - be it social, HA's or private rents etc
LHA is for private rents
Rent rebates are for social rents - council owned properties
HA's come under social rents so are paid whatever the rent is excluding non-eligible service charges.
The full breakdown has to be given along with the tenancy agreement - it may well be in the back. But some council have to ask the HA's for the breakdown so they can disregard the non-eligible charges
If it's a new build then more than likely they will have given it already
If your MIL is a pensioner then she won't be under the 'bedroom tax' and will get the rent; £131.42 minus any service charges if any“You’re only here for a short visit.
Don’t hurry, don't worry and be sure to smell the flowers along the way.”Walter Hagen
365 Day 1p Challenge for 2021 #41 ✅
Jar £440.31/£667.95 and Bank £389.67/£667.950 -
Currently the system is housing benefits, with the "bedroom tax" rules for social tenants, and local housing allowance for private tenants.
Social housing tenants may have the "bedroom tax" applied if under the criteria. Currently pensioners are exempt from this spare room charge.
Private tenants are restricted to local housing allowance, ie a single person gets a maximum allowance of the one bedroom rate for their area if they are over 35. As long as their rent meets or is under this rate it does not matter if what they rent is a one bed or two bed.
For people who are existing tenants in social housing they will not be affected by the new rules that are coming into force in 2018.
The rules will apply to anyone who has signed a new tenancy from April 2016.
The rules are:-
- the local housing allowance rate will be applied to the social tenant. This will apply in the same way, ie under 35 its the shared allowance rate, and for single people over 35 its the one room rate. This will apply to all tenants, including pensioners. They will be ok if their rent is the LHA rate or lower, regardless on the amount of bedrooms. The problem will be is if their social rent is higher than the LHA allowance.......the more bedrooms the higher the rent.
Its predicted that many social housing tenants wont be affected as the rents are usually cheaper than those in the private sector. However, the two groups predicted to be affected are the under 35s whose LHA shared room rate may be less than the rent for a one bed council place.
The other group is those with a new tenancy in expensive social housing. An example is those with affordable rents rather than social rents. Social rents are the cheapest, affordable rents are based on charging 80% of the going private rent for equivelant properties.
This site explains it well
https://www.wolverhamptonhomes.org.uk/tenants/money-and-benefits/benefits/new-tenancy-housing-benefit-changes/housing-benefit-changes
This also helps
http://www.rightsnet.org.uk/forums/viewthread/10312/
Despite these changes, I agree with the poster who says take the 2 bed flat. It may be that a pensioner might be able to apply for a discretionary top up....worst case scenario they may have to top up the difference.........but if in a private rental they may have to do that anyway. At least the social housing gives security of tenancy.
However, please note that sheltered schemes are the subject of much debate at the moment with regard to the new rules.
http://www.rightsnet.org.uk/forums/viewthread/9392/P90
Ty0 -
Does your local council have a web site explaining what's included in the service charges? I've had a look on the shelter web site and things like lift repairs are included but others like care alarms are not.
I don't know if this new rule will be implemented in the future but there's media reports of pensioners being included for what is commonly known as the bedroom tax.
http://www.independent.co.uk/news/uk/politics/bedroom-tax-pensioners-social-housing-housing-crisis-council-houses-a7340136.html?amp
If I was a pensioner I would take the flat regardless of the service charge and possible spare bedroom charges and see if I could cut costs elsewhere in my budget. It's got to be more secure than a private rental.......
The "security" would depend purely on the type of tenancy - if it's an "assured shorthold tenancy" then it will be for a fixed term but if it is an "assured tenancy" the tenant will have security of tenure effectively for life as long as they pay their rent and abide by the terms of the lease.0 -
an assured shorthold tenancy in social housing will be renewed as lomng as the tenant isn't in breech of their tenancy agreement and still meets the criteria for renting the property.The "security" would depend purely on the type of tenancy - if it's an "assured shorthold tenancy" then it will be for a fixed term but if it is an "assured tenancy" the tenant will have security of tenure effectively for life as long as they pay their rent and abide by the terms of the lease.
so compared to a private rental, is still a very secure way of renting.
you can be forced out of a private rental after the tenancy period with no reason at all0
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