Unreasonable service charges
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jmembery.
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September 8, 2006 at 8:14 am #22727
David
ParticipantWe have recently been notified of a rent increase for a small block of 4 Housing Association flats. The rent has increased marginally to ££52.08 a week. However, the service charges identified as ‘eligible for HB’ are now £19.60.
This seemed to be high in relation to the type of property. I established that this incudes £7.69 for gardening, £3.85 for heating/lighting & £2.40 for amnagement charges on service items.
I wrote to the HA without reply asking whether they can show the charges are reasonable. I had wondered whether the gardens were to the standards of one of the Oxford colleges, but no, a visiting officer was able to tell me there’s just a small lawn & a couple of trees.
Has anyone any experience of successfully restricting service charges? Should I just choose some lower charges, & wait for HA to argue otherwise, or is there a more ‘scientific’ way?
Any ideas or comments gratefully received!
September 8, 2006 at 8:35 am #9306jmembery
ParticipantHere is parts of some training notes that I am putting together for my people. It is a “work in progress” but may be of some help to you.
Jeff7) How do I go about restricting the service charge element?
This is covered by Schedule 1 of the regulations and Commissioner’s decision CH/0137/2004. Here you only need to look at the cost of individual services charges, not the overall level of rent. Just restricting service charges is more straightforward than restricting the “overall” level of rent.
7a – eligibility
Firstly check to see if the services are “eligible” or not. Services are only eligible if they are “connected with the provision of adequate accommodation”. Services charges for items covering day to day living expenses are not eligible for Housing Benefit, nor are charges for personal care or general counselling and support. This is particularly important as the latest DWP advice is that “any cost that is consequent to the provision of support is a support cost” and therefore not eligible for Housing Benefit. So, for example, if a support worker sleeps in a property overnight to provide CSS to the tenants, the cost of the room etc are classed as “support costs”.When considering if a charge is “connected with the provision of adequate accommodation”, you should consider it in the context of the general population, not in the context of tenants with specific additional needs. To put this another way, if a service is needed to make the accommodation adequate only because of a particular need, or set of needs, of the tenants of that accommodation, it is probably not eligible for Housing Benefit.
7b – Is the amount of the service charge “excessive”
Once you have established that a service charge is eligible you need to decide if it is “excessive” in relation to the services provided for the claimant or his family, having regard to the cost of comparable services”. If the charge is not excessive then no restriction should be applied. If the charge is “excessive” then the LA must restrict the service charge to the level of the comparable services.As you are only looking at “eligible” services there is plenty of information on the cost of similar services supplied to tenants by housing associations and charities in the “housing association rent increases” folder on DIP to use for comparisons to decide if a service charge is excessive.
September 8, 2006 at 10:03 am #9307dp66
ParticipantHi
I notice in the last post it refers to latest DWP advice on support costs. We are currently reviewing our reg 11/12 caseload and are arguing about the cost of providing an extra room i.e should it be a Housing or support cost. Could you please point me in the direction of the DWP advice as this could consolidate our argument.Thanks
Debbie PSeptember 8, 2006 at 10:07 am #9308jmembery
ParticipantThe “latest” guidence in this area is still over a year old.
It was contained in G2 2005.
JeffSeptember 8, 2006 at 10:09 am #9309dp66
ParticipantThanks – as always any help gratefully received
September 8, 2006 at 10:11 am #9310jmembery
ParticipantIf you would like a copy of my training notes on “Restricting eligible Rent for Supported Accommodation” just PM me your e-mail address.
I make no great claim for them but they might be useful
Jeff
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