Top Tips for a Debt Free Christmas from Citizens Advice Bureau
Christmas is a time of giving, but you don’t want to give yourself a headache in the New Year with bills and debts you can’t afford. It’s all too easy to overspend – there are tempting offers and pressures to buy, but you must decide how much you can afford before you start spending.
Changes to Housing Benefits, Incapacity Benefit and Pension Credits
A number of changes are to take effect from October 2008 regarding these benefits.
Housing Benefit Back Dates
From October 2008, back date requests for housing benefit will only be considered for up to 3 months for pension aged claimants and up to 6 months for working aged claimants, who can provide a good reason for not claiming the benefit earlier.
Housing Benefit Extended Payments
Tenants moving from Income Support or Job Seekers Allowance into paid employment, who have been receiving these benefits continuously for the last 26 weeks, are entitled to receive extended payments to cover the first 4 weeks of the rent as the same benefit rate.
Housing Benefit claimants will not longer have to apply to received extended payments from the housing benefit section at Charnwood Borough Council. The benefit will automatically continue as long as the paid employment is expected to last more than 7 weeks.
Housing Benefit - Child Maintenance Disregards
From 27 October 2008, maintenance received by claimants from their former partners towards their children, will no longer be considered when calculating their housing benefit entitlement.
Incapacity Benefit is to be replaced Employment Support Allowance
From 27 October 2008 incapacity benefit will no longer be available and will be replaced by Employment Support Allowance, for any new claimants who are unable to work due to short or long term illness.
Following an assessment after 14 weeks of receiving a basic benefit allowance, claimants will be moved into one of three categories depending on their capability to work.
If they are considered to be fit to carry out work, they will return to work or apply for Job seekers allowance. If they have limited capability to work they will received an additional allowance, but will be expected to attend job interviews, failure to attend interviews will result in their benefit reducing. If they are not capable of returning to work they will receive a higher rate of benefit and maybe entitled to other benefits such as Disability Living allowance.
Pension Credits
From November 2008 Customers contacting The Pension Service to make a new Pension Credit application, will be able to make a telephone claim for Housing Benefit and Council Tax Benefit alongside their Pension Credit application, without needing to complete a claim form or provide a signature.
All relevant information for Housing Benefit and Council Tax Benefit claims, including non-dependant and child details, will be sent directly to the Charnwood Borough Council at the point the Pension Credit application is assessed.
Paying your Rent receives Rewards but Rent Arrears can lead to Eviction
Between April and September 2008, 10 tenants were evicted from their homes for not paying their rent. During the same period we have offered High Street Vouchers as rewards via a prize draw to five tenants who pay their rent on time.
Tenants who do not pay their rent as it falls due, are placing their homes at risk and could face eviction if they continue to miss payments or repay their arrears. Between April and September 2008, 189 households received a Notice on their tenancy due rent arrears.
Eviction is a last resort and help and advice is offered by the Housing Income Team to ensure that all tenants experiencing difficulties paying their rent, receive support and guidance to pay all their bills. Since March 2008 The Money Management Officer has secured an extra £22,000 of housing benefit for tenants towards their rent accounts.
If legal action is taken to recover rent arrears, court costs are added to the debt outstanding and remain the tenant’s responsibility for payment. Between April and September 2008, 32 households have been referred to court. Where court orders are granted, tenants can find it difficult to get credit and can even struggle to get a mobile phone contract!
If you are having difficulties paying your rent leading up to the expensive Christmas period, please contact the Housing Income Team or the Money Management Officer, free from any landline on 0800 6335548, are here to help and it’s never too late to prevent an eviction.