The cost of running a home€¦ · Make sure that all your ‘money coming in’ figures and ‘money going out’ figures are changed into either weekly or monthly amounts. • To

The cost of running a home

www.wolverhamptonhomes.org.uk WolvesHomesWolvesHomes

Do you lack confidence usingcomputers?Would you like to learn more about emails,facebook, online services, online shopping, online banking and money saving websites?

We can offer Wolverhampton Homes tenantsdigital training – in your own home and at your convenience.

For more details call the Click Start teamon 01902 550491 or 07717 732982.

Page 2

Get money smart before you start!

If this is the first time you have thought about setting up your own home, you also need tothink about the cost of furniture and your essential household items. This may include beds,sofa, table, cooker, fridge, washing machine and carpets.

If you already have a place of your own you’ll know how much it costs. On top of rent andcouncil tax, there are bills such as gas, electricity and water.

This guide gives you an idea of the costs of running your own home. You need to make surethat you can afford these costs before you take on a Wolverhampton Homes tenancy.

We know the most difficult time of any new tenancy is the first two years.

• money or lack of it can be a real problem • making ends meet is tricky• having to budget and juggle paying bills on time can be a headache.

Our Money Smart Team can help you with:

• Benefits advice• Budgeting and the costs of running your home• Debt advice and maximizing your income• Advice on basic bank accounts, Credit Union account saving and budgeting accounts• Signposting to low cost loans• Advice on dealing with loan sharks• Low cost home contents insurance• Getting the best deal from energy suppliers• Low cost recycled furniture• Low cost electrical goods for the kitchen

We hope you find this booklet useful and if you have any questions please contact the Money Smart Team on 01902 556789 to arrange a meeting.

Wolverhampton Homes has taken reasonable care to ensure the information provided in this booklet is accurate. However, all figures given are estimates and by way ofillustration only. Wolverhampton Homes will not be held responsible for any direct or indirect loss, damage or inconvenience caused as a result of any reliance, by any person, on any inaccuracy, error or omission within this document.

3THE COST OF RUNNING YOUR HOME


Universal Credit

Universal Credit arrived in Wolverhampton in 2016. This new type of benefit will replace sixcurrent benefits with a single monthly payment. It will be paid once a month IN ARREARS intoyour bank account, in the same way as salary. It is payable to people of working age includingthose who are unemployed, working or too sick to work. Universal Credit replaces:

• Income Support • Income-based Jobseeker’s Allowance• Income-related Employment and Support Allowance• Housing Benefit• Child Tax Credit• Working Tax Credit

Since 8th February 2016, Universal Credit arrived in Wolverhampton for single people claimingfor the first time. December 2017: It will be extended to couples and families making new claims for the first time.September 2018: Existing claimants will be asked to apply for Universal Credit. From 2022: All claimants should be on Universal Credit.

Universal Credit will involve the Housing Element, this is a replacement of Housing Benefit.YOU will need to make arrangements to pay the rent yourself. Paying rent is a prioritypayment. Failure to keep the rent account up to date will result in you losing your home.

Things to remember

• Universal Credit will be paid directly into your bank account and paid monthly in arrears• YOU will have to pay the landlord yourself as any help you get with rent will be included in your Universal Credit Payment • You will get one monthly payment for your whole household• Most people will claim Universal Credit online and keep their account up to date online• If you open a bank account that doesn’t have an overdraft facility you won’t normally have to go through a credit check.

For more information or advice on preparing for Universal Credit please contactWolverhampton Homes on 01902 556789 or visitwww.wolverhampton.gov.uk/welfarereform.

Credit Union has budgeting accounts which you can apply for call us or see our website for details.


Benefit Cap

The Benefit Cap restricts the amount of benefits you can receive to £384.62 each week for

families. There are many benefits included in this cap including Housing Benefit, Jobseeker’s

Allowance, Income Support, Employment and Support Allowance, Child Benefit and Child

Tax Credits. At present, they are only implementing the Benefit Cap by reducing from the

Housing Benefit claim. There are exemptions to the cap. Some of the exemptions include

Working Tax Credit, Disability Living Allowance, Personal Independence Payments and if

you receive the support component of Employment and Support Allowance.

For example, a couple living with three children in a home of which rent is £100 per week.

The total average benefit the family receives is £333.36 not including Housing Benefit.

The Benefit Cap is up to £384.62 which means the family would get £41.26 Housing

Benefit and have to pay £48.74 out of the other benefits they receive.

Benefit cap figures

£384.62 per week (£20,000 a year) if you’re in a couple

£384.62 per week (£20,000 a year) if you’re a single parent and your children live with you

£257.69 per week (£13,400 a year) if you’re a single adult

For further information, please visit www.gov.uk/benefit-cap/overview

Child Tax Credit

From 6th April 2017, you are only eligible to receive

Child Tax Credit for your first two children. If you

have one child, Child Tax Credits will pay for

one more child. If you already have two

children and have any more, then

you are not able to claim Child

Tax Credit for any more children.

Please see www.gov.uk/child-tax-credit/overviewfor further information.

Paying your rent is a priority

Council rents in Wolverhampton:

Property Type Average Rents

1 bed low rise flat £71.77

2 bed low rise flat £79.05

1 bed high rise flat £63.94

2 bed high rise flat £70.94

2 bed house £82.99

3 bed house £90.85

4 bed house £98.43

If you are on a low income you may be entitled to Housing Benefit. Complete a HousingBenefit and Council Tax Reduction form online. Your Lettings Officer can help you make a claim when you sign up for a property. A guide to how much Housing Benefit you may be entitled to is available from your One Stop Shop or the Housing Benefit Department. For more information go to www.wolverhampton.gov.uk

Paying your Rent

Your rent is due in advance, from the day you start your tenancy and then each Mondayafter that. It is important that you do not fall into arrears. If you pay weekly, fortnightly ormonthly you must pay in advance to avoid arrears. You can choose how you pay from thelist below but the most reliable method is Direct Debit. For more information go to www.wolverhamptonhomes.org.uk/direct-debit

How to Pay• Direct Debit – we offer a range of payment dates. To set one up call 0800 408 0440. • Online – using your debit or credit card and quoting your eight digit account number.• Over the phone – using our automated 24-hour service 0800 180 4464• Post Offices or Paypoint outlets with your Customer Payment Card. Please allow three days for the payment to reach your rent account.

Your rent shouldbe paid a month

in advanceas agreed in your

tenancy agreement


For 2019 financial year there are 53 weeks where you are liable for rent. If you claimUniversal credit you will need to cover this cost yourself. This happens once every 7 years.


Council Tax

Band A – Yearly £1220.14 Weekly £23.02 Monthly £122.01 over 10 monthsBand B – Yearly £1423.50 Weekly £26.85 Monthly £142.35 over 10 months

Wolverhampton City Council charges Council Tax for the services it provides plus acontribution to the Police and Fire Service.

Weekly Monthly Yearly

Band A £23.02 £122.01 £1220.14

Band B £26.85 £142.35 £1,423.50

All Council properties are Band A or Band B. The Lettings Team will tell you the band of your new home or visit www.counciltaxfinder.com

If you live in the property alone you may be entitled to a 25% discount off your bill.

Depending on your circumstances you may be entitled to Council Tax Reduction. Completethe Housing Benefit and Tax Reduction Form. Request an appointment for a new claim bycalling 01902 551166.

Council Tax Reduction

Everybody who receives Council Tax reduction has to pay towards their Council Tax bill.

• Most people will now need to pay at least 22% of their bill.

• People of pensionable age, severely disabled people, families with severely disabled children and single people under 25 with no children will pay 12%.

• The other change is that tenants from abroad without worker status, who are not eligible for housing benefit – will not be able to get help with paying their Council Tax therefore will need to pay the full amount.

• If you have two or more dependent children, Child Benefit for the first child will be disregarded but Child Benefit for the second child or more will be included when calculating a family’s total income.

• The maximum period of backdating will be one month.

• Second Adult rebate will be removed.


Gas and Electric

Paying by Direct Debit and having the same supplier for your gas and electricity (dual fuel)generally saves you money on your bills. Please note not all council properties have a gassupply, so all electric property energy costs will be higher than stated. Pre pay meters tariffsare also more expensive that standard credit or direct debit tariffs.

Below is an idea of weekly cost for gas, electricity and dual fuel. These will vary dependingon the utility company you choose and how much fuel you use.

Tariff Gas Electricity Duel Fuel Comparisons

1 or 2 bedroom flat single person/couple £15.86 £16.87 £9.23 £9.82 £24.80 £26.40

2 bed flat/ house/ single person/ £21.43 £22.80 £13.65 £14.52 £34.79 £37.03 couple with children

3/4 bed house single person/ couple with £21.67 £23.05 £14.02 £14.92 £35.42 £37.68 children

*Other payment methods - eg. payment cards, prepayment meters, cheque.

Top tips on energy efficiency

Lighting – Fit lower wattage or energy efficient bulbs wherever possible.

Heating – Turn your heating thermostat down and save on your energy bill. The recommendedtemperature is 18 oC. Use timers and programmers to make sure that the heating and hotwater are only provided where and when you need them.

Laundry – Washing clothes at 30 oC saves energy.

Cooking – Only fill kettles with as much water as you need.

Appliances – TV’s, DVD players and Music Systems use up to 90% energy in standby mode so make sure they are turned off at the socket or use a power down device which willautomatically turn them off when you switch off your appliances. For more information on getting a power down device fitted, contact us on 01902 556789.

For free energy advice contact our Energy and Climate ChangeTeam on 01902 556789 or visit www.uswitch.com for furtherinformation.

Direct Debit OPM* Direct Debit OPM* Direct Debit OPM*


Guide to Budgeting

By using our simple personal budget sheet it lets you see how much money you will havecoming in and will have going out to leave you with a final figure. If this figure is positive youcan probably afford the cost of running a home e.g. plus £20.

If this figure is negative e.g. minus £15, you will be paying out more than you get in eachweek – meaning you are at risk of debt. If this applies to you, we strongly recommend thatyou have another look at your income and outgoings and think whether you are in a positionto set up home at the moment.

Completing your Budget SheetRead through this booklet to see what your costs might be. Make sure that all your ‘money comingin’ figures and ‘money going out’ figures are changed into either weekly or monthly amounts.

• To change weekly figures into monthly, multiply by 52 and then divide by 12 eg. £73.10 per week Jobseeker’s Allowance x 52 ÷ 12 = £316.77 per month

• To change monthly figures into weekly, multiply by 12 and then divide by 52 e.g. £90.00 per month on electricity x 12 ÷ 52 = £20.77 per week

Personal calculations are available on request by contacting us on 01902 556789. If youneed advice on debt or money management or you think you may be entitled to additionalwelfare benefits there are a number of agencies such as the Citizens Advice that can offerhelp. Please refer to our website for details.

Priority and non-priority billsYour main priority bills are rent, Council Tax, TV Licence, gas, electricity and water and you should always ensure that these are paid on time. If you do not pay these, you areputting your tenancy and belongings at risk. You can even face fines and imprisonment for non-payment of your Council Tax and TV Licence.

Non-priority bills include loans, credit cards and catalogues. These are debts of which you have received credit through companies and you are expected to pay them back. You usually have to pay interest on what you receive.

Always remember that your priority bills should be paid over non-priority bills. If you are having money worries, there are many agencies including Citizen’s Advice that can assist you.

O D O D O


Money Coming In

Amount Weekly

Wages

Job Seekers’ Allowance

Income Support

Employment Support Allowance or Incapacity Benefit

Personal Independent Payment or Disability Living Allowance

Child Benefit

Child Tax Credit

Working Tax Credit

Pension

Pension Credit

Maintenance

Universal Credit

Other

Total A

Notes


Money Going Out

Amount Weekly Rent (after Housing Benefit)

Council Tax (after Council Tax Benefit)

Water

Gas

Electricity

Home Contents Insurance

Other Insurance

TV Licence

Cable/Satellite TV

Food and Other

Broadband/Internet

Household expenses

Clothing

Car Insurance, tax, maintenance & servicing

Petrol/diesel Public transport

Childcare costs

School meals

Laundry costs

Landline/mobile

Money owed to others

1 £

2 £

Store cards

Credit cards

Total B

Now take B from Total A to find your disposable income

Total A £ – Total B £ = £

If your figure is a minus, contact us to see how we can support you.


For more local charities that supply low cost goods please contact Money Smart Team

[email protected]

Tel: 01902 572340 Email:[email protected]


1

SNUB THE TUBIf everybody in a family of four replaces one batha week with a five-minuteshower, you can save upto £18 a year on gas billsand up to £21 on a water bill, if metered.

TURN IT OFFA running tap wastesmore than six litres ofwater a minute, so turnoff the tap while brushingyour teeth, shaving, orwashing your face – anduse cold water if youdon’t need hot.

FILL ‘EM UP!Make sure that Washing machines anddishwashers are fullbefore you use them,and always use the mostefficient water andenergy savings settings.When it’s time to replaceyour appliance, look forthe Energy SavingRecommended logo.

CHANGE YOUR HEADIf a family of four replacetheir shower head with awater-efficient one theycould save around £72off their gas bills andaround £72 off theirwater metered bills eachyear. That’s a totalsaving of £150. For moreinformation on gettingone fitted, contact ourEnergy and ClimateChange Team on 01902556789.

SUDS LAWUsing a sink of water to wash up twice a dayrather than having thehot water tap runningcould save around £34 a year on you gas bill and around £25 on yourmetered water bill. If youneed to rinse utensils orwash vegetables, usecold water and don’tleave the tap running!

DON’T BE A DRIPA dripping tap canwaste more than 5,500litres of water a year, somake sure your taps areproperly turned off andchange washers whentaps start to drip.

MAKE IT GO FURTHERReuse unused water: For example, pourleftover glasses of wateron houseplants andavoid wasting waterfrom running taps whilewaiting for hot water.

TOP 7WATERSAVING

TIPS

3

2

5

4

7

6

UtilitiesWater RatesIf your new property already has a water meter, we will explain how it works when you signyour tenancy agreement. You will be charged for the amount of water you use instead ofpaying a fixed amount. A water meter can’t be taken out. If there is no water meter you willhave a fixed charge.

Water Rates are based on the Rateable Value of the property. Severn Trent charge £1.88 foreach pound of Rateable Value

Here are some examples of how much the water rates could be:

Water Weekly Yearly

1 bed flat £6.12 £317.80

2 bed flat £8.33 £433.06

2/3 bed house £9.51 £494.46

4 bed house £10.00 £519.93

Severn Trent Water supplies most council properties in Wolverhampton. South StaffordshireWater supplies a small number of properties in the City. Your Lettings Officer will tell you whoyour water supplier is.

If the property does not have a water meter and you think that having one could save youmoney, contact your supplier. A single person may benefit from having a water meter but afamily with children would be unlikely to. For further advice contact Severn Trent Water on0845 604 3772 or go to www.stwater.co.uk or for South Staffordshire Water contact 0845 45 67 063 or go to www.south-staffs-water.co.uk


TV, Internet and Phones

TV LicenceIf you use any type of television equipment or receive or record

television programmes, you are required by law to have a TV licence. This includes TV sets, video recorders, set-top boxes, PCs and mobile devices.

If you have moved to a new home and have a licence at your old address, inform TV licensingby visiting www.tvlicencing.co.uk/moving - the figures below show how much a colour TVlicence costs:

TV Licence Weekly Monthly Yearly

Colour £3.00 £12.87 £154.50

Please note that you’ll usually pay for your first TV Licence within six months so payments maybe £24.50 per month to start with. If you, or someone you live with, are aged 75 or over, youmay be able to claim a FREE over 75 TV licence. Please contact TV licensing to apply,otherwise you will be unlicensed. Also if you are registered blind you could qualify for a 50%concession.

How do I buy a TV licence? You can buy your licence by:• Direct Debit • Debit/Credit Card • Shop or Post Office with Paypoint • Post • Online

You may want to spread the cost of your TV licence, you can make payments of as little as £5.00 at any post office branch or pay point outlet. For more information please call TV Licensing on 0300 790 6130 or visit www.tvlicensing.co.ukCable & Satellite packages Many people now choose to subscribe to cable or satellite packages that include TVchannels, broadband and landline calls. The cost of a package can be between £22 and £68per month, check with individual suppliers for details. You will need our permission to install asatellite dish so contact 01902 556789 for details.

Internet accessYou may need the internet for claiming a benefit, conducting job searches or paying your rent so you should consider how you can get connected. Youcould either have broadband fitted in your home for a monthly fee or you mayprefer internet access on the move for your mobile phone, laptop or tablet thatyou can subscribe to through by contract or pay as you go.

Landlines and Mobile PhonesLine rental costs vary and call costs may vary, check with individual suppliersfor details. If you have a mobile phone, remember to budget for your contract,call charges or top-up costs.To compare prices and tariffs visit www.uswitch.com


Travel

Car – Remember to allow for the amount you spend on petrol, maintenance, servicing, tax, insurance and car loan.

Public Transport – You may find that a Travel Card will help to keep costs down. For more details contact National Express West Midlands on 0121 254 7272 or go towww.nxbus.co.uk/west-midlands

Food and Other Household ExpensesFor food and other household expenses you should allow on average:

• £65 – £75 per week, per adult• £25 – £36 per week, per child

If any member of your household has medical conditions or needs a special diet, you mayneed to allow more.

Clothing• Allow £25 – £30 per month per child (particularly for young children)• Allow £25 – £30 per month per adult

School MealsSchool meals cost about £11 per week or £2.20 per day.

Free school meals are available to any full-time student who is still at school including nursery children who attend all day and also sixth form students for your child if you or yourpartner gets either:

• Income Support• Income-Based Jobseekers Allowance• Child Tax Credit only (with a family income of less than £16,190 – assessed by the HM Revenue and Customs)

• National Asylum Seekers Support• Guarantee Element of State Pension Credit

• Employment and Support Allowance – income related only

Free school meals will be provided for all students up to Year 2.

Meals are not available for students at further education level.

For information call 01902 551122 or visit www.myfreeschoolmeals.com

Moving in day

One of the first tasks is to take readings of your gas, electricity and water meters andprovide them with your meter readings. (if you are moving out of your property, then youshould take your final meter readings too). You should also contact your Local Authority and make arrangements to set up your Council Tax account.

There are other people you need to tell such as:

• Old and New landlord

• Housing and Council Tax (benefits)

• TV Licence (required by law)

• Electoral Role (this can help with your credit score and contribute to your

digital footprint)

• Utility Providers (now would be a fantastic time to check your getting the best offer)

• Your employer/Job Centre/Her Majesty Revenue & Customs

• DVLA for driving licence and vehicle registration (required by law)

• Internet and Television providers

• Royal Mail (there may be a charge to have your mail redirected, try to inform people

before you move)

• Any companies you have borrowed money from or owe money to

• All bank/building societies

• Doctor

• Dentist

• Schools

• Family and Friends.



Useful telephone numbers and websites

Wolverhampton Homes www.wolverhamptonhomes.org.uk 01902 556789

City of Wolverhampton Council www.wolverhampton.gov.uk 01902 551155

Wolverhampton Credit Union www.wccul.co.uk 01902 572340

Citizens Advice www.citizensadvice.org.uk 03444 111444

USwitch www.uswitch.com 0800 051 5493 (Landline)

0333 321 6808 (Mobile) National Debt Line

www.nationaldebtline.co.uk 0808 808 4000

Better off in Wolverhampton www.bow-online.co.uk 01902 572027

TV licensing www.tvlicencing.co.uk 0300 790 6165

Severn Trent Water www.stwater.co.uk 03457 500 500

Royal Mail www.royalmail.com 03457 777 888

DVLA www.dvla.gov.uk 0300 790 6801

Step Change Debt Charity www.stepchange.org 0800 138 1111

Money Advice service www.moneyadviceservice.org.uk 0300 500 5000

Who Supplies My Electric 0845 603 0618

Who Supplies My Gas 0870 608 1524

Register To Vote Online www.gov.uk/register-to-vote


Useful QR Codes

Wolverhampton Credit Union

Universal Credit Wolverhampton

City of Wolverhampton Council

www.wolverhamptonhomes.org.uk WolvesHomes

WHRM50

03 05/17

Documents

The cost of running a home€¦ · Make sure that all your ‘money coming in’ figures and ‘money going out’ figures are changed into either weekly or monthly amounts. • To