The Cost of Running a Home (2015 edition)

THE COST OF RUNNING A HOME2015/16 Edition

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3THE COST OF RUNNING YOUR HOME

Get Money Smart before you start!

Before you are offered a property, Wolverhampton Homes may ask you to attend a ‘Are You Ready session’ to check if you are able to support yourself and maintain a property.

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 MoneySmart Team on 01902 556789 to arrange a meeting.

Better off in Wolverhampton (BoW) are offering support to social tenants and young people by helping to beat debt, assisting with budgeting and improving financial confidence. Contact BoW on 01902 572027 or email [email protected] visit www.bow-online.co.uk for further information.

Wolverhampton Homes has taken reasonable care to ensure the information providedin 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 orindirect loss, damage or inconvenience caused as a result of any reliance, by anyperson, on any inaccuracy, error or omission within this document.



Welfare Reform – How the changes may affect you!

Universal Credit A new type of benefit that will replace six current benefits with a single monthly payment.It will be paid once a month IN ARREARS into your bank account, in the same way as asalary. It is payable to people of working age including those who are unemployed, working or too sick to work. Universal credit will replace:

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

If you are already getting any of these benefits, Universal Credit will replace them. New claimants who are single will be invited to claim Universal Credit from December 2015 to April 2016.

Once you receive Universal Credit your housing benefit payment will no longer be paiddirectly to Wolverhampton Homes. YOU will need to make arrangements to pay your rentyourself. Paying your rent is a priority payment. 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’ll 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.

Money Smart Team can help set up email addresses. Web Wizards are also available to support you online.

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

We also have a Facebook page Wolverhampton Homes Money Smart Team

Credit Union has budgeting accounts which you can apply for call Money Smart or seewebsite for details.


Paying your rent is a priority

Council rents in Wolverhampton:

Property Type Average Rents

1 bed low rise flat £73.25

2 bed low rise flat £81.10

1 bed high rise flat £65.20

2 bed high rise flat £72.30

2 bed house £85.95

3 bed house £93.10

4 bed house £101.11

If you are on a low income you may be entitled to Housing Benefit. Complete a Housing and Council Tax Benefit Form to apply. Your Lettings Officer can help you make a claimwhen 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 each Monday, it is important that you do not fall into arrears. If you paymonthly or fortnightly, you must pay in advance to avoid arrears. You can choose how you pay from the list below but the most reliable method is Direct Debit. Direct Debit payers are entered into a FREE monthly prize draw. For more information go to www.wolverhamptonhomes.org.uk

How to Pay• Online – using your debit or credit card and quoting your eight digit account number.• Direct Debit – we offer a range of payment dates and if your account is up to date you will be entered into a prize draw. To set one up call 0800 408 0440. • Over the phone – using our automated 24-hour service 0800 180 4464 or 01902 556789.• Post Offices, Paypoint or Payzone outlets with your Customer Payment Card. Please allow three days for the payment to reach your rent account.• Our One Stop Shops.

Rent free weeks There are two rent free weeks each year. If your account is in arrears you must continue topay on the rent free weeks. The next rent free weeks are:


Week 38 21 December 2015

Week 52 28th March 2016


Council Tax

Band A – Full Charge £1,020.75 – 22% of this charge will be £224.57Band B – Full Charge £1,190.88 – 22% of this charge will be £261.99

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

Weekly Monthly Yearly

Band A £19.63 £85.06 £1,020.75

Band B £22.90 £99.24 £1,190.88

All Council properties are Band A or Band B. The Lettings Team will tell you the band of yournew 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. Complete a Housing and Council Tax Benefit Form to apply. Request an appointment for a new claim by calling 01902 551166.

Council Tax Reduction

From 1st April 2015 there have been changes to the amount of Council Tax you need to pay.

• 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.




Here are some examples to help you understand what the Council Tax SupportScheme changes may mean.

Example 2 - Mr B lives in a Band A property and receives a Single Person Discount. He also claims Job Seeker’s Allowance. 2015/16 per year

Band A charge £1,020.75

Maximum amount of support 78% before any other discount £796.18

Single Person Discount £255.19

Single person Council Tax Bill £765.57

Maximum amount of support (£796.18 take away £255.19) £540.99

Minimum amount payable by Mr B £224.58

Band A no entitlement £19.63pw or £85.06pm over 12 months.

Band A eligible to 78% discount £4.32pw or £18.72 pm

Band B no entitlement £22.90pw or £99.24pm

Band B eligible to 78% discount £5.04pw or £21.84pm

We are unable to reflect all individual circumstances in our examples. If you require further

information, please contact City Direct at Wolverhampton City Council or visit

www.wolverhampton.gov.uk/welfarereform

Payment of Council Tax is a priority.

For more information visit www.wolverhampton.gov.uk/welfarereform

Example 1 - Couple A live in a Band A property. They are both unemployed and receive Job Seeker’s Allowance. 2015/16 per year

Band A charge £1,020.75

Maximum amount of support 78% £796.18

Amount payable by Mr and Mrs A £224.58



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. £72.40 per week Jobseeker’s Allowance x 52 ÷ 12 = £313.73 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 Bureau that canoffer help. Please refer to our website for details.

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

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.



ANCHORCHARITY SHOP

Living Room Furniture from £15.00Bedroom Furniture from as little as £5.00Bedding, curtains and towels from £1.00

If you don’t see what you want – just ask!58 CHURCH STREET, BILSTON WV14 0ATTELEPHONE: 07856 986833Open Monday-Saturday 9.00am-5.00pm

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



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 towash to wash up twice aday rather than havingthe hot water tap runningcould save around £34 ayear on you gas bill andaround £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 7WATERSAVINGTIPS

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2

5

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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 £5.99 £311.56

2 bed flat £8.16 £424.56

2/3 bed house £9.32 £484.76

4 bed house £9.80 £509.73

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 £2.80 £12.13 £145.50

If you, or someone you live with, are aged 75 or over, you may be able to claim a FREE over 75 TV licence. Please contact TV licencing 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.tvlicencing.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 searchesor paying your rent so you should consider how you can get connected.You could either have broadband fitted in your home for a monthly fee oryou may prefer internet access on the move for your mobile phone, laptopor tablet that you 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 individualsuppliers for details. If you have a mobile phone, remember to budget foryour 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 £10 per week or £2 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 from September 2014.

Meals are not available for students at further education level.

For information call 01902 556594, 01902 554128 or visit www.myfreeschoolmeals.com



Home Contents Insurance

Without insurance you won’t be covered for belongings, furniture or decorations againsttheft, fire, vandalism, burst pipes or other household risks.

You will need to take out your own insurance.

We currently have a special scheme to take out insurance with an Allianz which makes iteasy for you to protect your belongings.

Its available no matter where you live in the City.

Sum Insured Weekly Premium Weekly Premium aged over 60 aged under 60

£6,000 £0.46 N/A

£9,000 £0.69 £1.23

£12,000 £0.92 £1.64

£15,000 £1.15 £2.04

£18,000 £1.38 £2.45

£21,000 £1.61 £2.86

£24,000 £1.84 £3.27

£27,000 £2.07 £3.68

£30,000 £2.30 £4.09

£35,000 £2.68 £4.77

Other quotes are available. Please contact the Insurance Officer on 01902 556789 or visitwww.wolverhamptonhomes.org.uk/home-insurance

We urge you to take out home contents insurance, either through our special schemeor by making your own arrangements. Home contents insurance provides a ‘financialsafety net’ for losses and can minimise how much it would cost you to replace orrepair items that have been damaged.



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 License (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 license 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)

• 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

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

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

Citizens Advice Bureau www.citizensadvice.org.uk 01902 572006

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


www.wolverhamptonhomes.org.uk WolvesHomes 01902 556789

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03 03/15


Documents

The Cost of Running a Home (2015 edition)