INTRODUCTION OF SERVICE CHARGES 4TH APRIL 2016 FAQS WHAT

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Introduction of Service Charges 2016



Introduction of Service Charges 4th April 2016


FAQs


What is a service charge?

A service charge is a payment made by a resident towards the cost of providing and maintaining communal areas and facilities.


From 4 April 2016, tenants and licensees living in a property with shared services (such as communal cleaning or communal utilities i.e. electricity or water) will pay a service charge.


There will be 4 service charges:


How are service charges calculated?

Service charges have been calculated based on actual costs of services being delivered apportioned between all households in flatted blocks and/or shared areas. However, you will only be charged for the services you receive.


What does this mean for tenants/licensees?

Under current housing benefit regulations, communal service charges are covered by housing benefit, if you are eligible to receive benefit.


What if I am not happy with the standard of services provided?

This is very important to us. Please be assured that the Estates Manager will be working with a range of staff to put routine management checks into place.

In addition to this, we also have a number of tenant inspectors who already check services in communal areas such as cleaning. Whilst satisfaction levels remain high (around 86%) we want to work with all tenants to ensure that the services we provide meets customer requirements and standards are maintained.


We are committed to working with you to ensure best value for money with all utility costs. We have set aside £250,000 in the Council’s capital programme to invest in communal areas to reduce overall utility costs with things like new energy efficient lighting, more efficient use of laundry rooms as well as improving cleaning services and specifications.


What do I do if I am currently on Housing Benefit?

You don't need to do anything. If you receive full or part Housing Benefit and your circumstances remain the same, your charges will be paid in full. If you do not get housing benefit then you can speak to us to have this re-assessed as you may now qualify for housing benefit to cover these charges.


It remains your responsibility to advise the Council of any future changes in your personal circumstances and to apply for housing benefit if you believe you may be eligible. To check if you are eligible for benefit you can complete the on line benefit calculator on Tamworth Borough Council’s website. It is always best to make a claim if you think you may be eligible and it costs nothing to apply other than your time.


What if I can’t afford to pay?

We work with all our tenants/licensees to offer welfare benefit advice and income maximisation. We will ensure you are getting all the benefits you are entitled to and can also sign post you to other agencies providing work, benefit and debt management support.


What if I don’t want to pay?

Tenants/licensees who do not pay their rent and or service charges will be in breach of their tenancy agreement/licence agreement and action will be taken against them. However, this will be a last resort and we would wish to work with anyone experiencing financial difficulties to offer the most appropriate help and assistance which includes all of the above. If you are finding it difficult to pay your rent and service charges it is important that you contact your Tenancy Sustainment Officer as soon as possible Tel 01827 709514.


If you are a leaseholder you should refer to the terms of your lease or speak to an officer at the Council directly.


Why do I have to start paying a service charge when I haven't had to pay for this previously?

Up until now, nobody receiving these shared services has had to pay for them and the costs have been met from rental income generally. In order to demonstrate value for money and show best use of resources then all costs should be transparent and fair. Service charges are levied to those in receipt of them and ensures “who benefits pays”.


How many people are affected by the introduction of service charges?

The introduction of service charges will affect a total of 1,013 tenanted households in Tamworth (648 in general needs accommodation, 365 in sheltered schemes and 8 licensees in supported accommodation). Of those affected tenants, around 63% in general needs and around 88% in sheltered accommodation will have the service charge fully covered by Housing Benefit. Of those affected licensees, 88% will have the service charge covered by Housing Benefit. This equates to fewer than 300 tenants having to pay extra as all of the charges proposed are eligible for housing benefit and one licensee.


When will the introduction of service charges start?

The introduction of service charges will commence from 4th April 2016. However, as there are different contractual arrangements for tenants/licensees and leaseholders there will be a dual process. Tenants/licensees and leaseholders will receive personal correspondence to confirm what this means for them directly.


Why do I have to pay service charges when I pay rent?

Service charges cover the cost of communal services that you benefit from which are currently not included in your rent.


How are service charges calculated?

Service charges will be calculated based on actual costs apportioned between all households in flatted blocks and/or shared areas.


Do I have to make a separate payment for my service charge?

No. Payment will be collected as part of your weekly rent but it will be separately identified on your statement.




Will my service charge be included within my rent statement?

Yes, details of your service charge will be included within your rent statement.


Are service charges based on the property or the number of residents living at each property?

The service charge is a household charge based on the property and not the number of people occupying it.


Can I have a breakdown of my service charges?

Yes. You can request a breakdown of your service charges, once introduced from 4th April 2016, by contacting your Tenancy Sustainment Officer.


What will I need to do if I am claiming Universal Credit?

You must inform the DWP (Department for Works and Pensions) immediately to advice them that from 4th April 2016 you will be affected by the introduction of service charges.


When do the new terms of my Tenancy Agreement or Licence Agreement take effect from?

From Monday 29 February 2016.


Will my Flexible Fixed Term Tenancy change?

Existing flexible fixed term tenancies will not change until your fixed term expires. However, any new tenancies from 29 February 2016 will receive the new flexible fixed term tenancy.


What should I do if I want to complain about this?

If you are not happy with any of the Council’s services then you can comment via the Councils ‘Tell Us’ policy.


How often are you thinking of providing the services?

The method and frequency of the services are detailed in the Service Charge Offer document. These can be scrutinised by our tenant inspectors who already audit communal and cleaning services. Any other service charges will be subject to cabinet approval and the same statutory consultation processes.


I don’t use the laundry service at my sheltered scheme, why do I have to pay?

All services provided for the benefit of residents have to be paid for even if a resident decides not to use it. For example, where there is a communal washing machine, every resident who has access to it has to pay towards its upkeep even if they decide never to use it.


Will Leaseholders have to pay service charges?

Leaseholders will be liable for service charges. However, due to contractual differences they may pay charges for additional services (e.g. repairs to communal areas that tenants don’t pay for) as well as having a different billing system.


I don’t receive full housing benefit or other related benefits, is there any advice available?

Yes. Welfare benefit advice is available. If you ring the freephone number 0800 183 0454 we will arrange for an officer to speak to you directly.



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