MONEY SPECIAL. Inside this special edition... Welfare Reform Team f reephone: l Universal Credit. l Bank accounts.

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1 JANUARY/FEBRUARY 2014 housingmatters Housing Matters is the newsletter for Medway Council tenants and leaseholders MONEY SPECIAL Inside this special edition... l Universal Credit How the changes will affect you. l Bank accounts What s best for you? l Keeping warm Are you entitled to help with your bills? l Debt matters Sound advice for us all. Welfare Reform Team f reephone:

2 Dear resident Welcome to this money special edition of Housing Matters. At this time of year, with the cost of Christmas and paying winter fuel bills, we can all feel the pinch on our finances. In this special edition we have included some practical money saving tips to manage and make the most of your money. We have also included the most up to date information on benefit changes and how this may affect you. We understand that changes to the benefits system may have a big impact on your finances, if you need help or advice you can call us using a dedicated freephone number Welfare Reform Team Information for tenants Below you will find a list of useful numbers for council services. Please cut this out and retain for your future reference. Housing repairs For urgent and non-urgent repairs inside normal working hours, phone or housingrepairs@medway.gov.uk freephone Out-of-hours repairs For emergency repairs outside of normal working hours, phone Gas If you have a problem with your boiler or gas fire, phone (option 1). General council enquiries Phone: info@medway.gov.uk Housing benefit/council tax Phone: ctax@medway.gov.uk Bulky waste collection (One bulky waste collection per house, per year) If you have a large unwanted item such as a sofa, wardrobe or mattress that you would like to dispose of, phone or book online at Electrical items waste collection - Don t use up your one free bulky waste collection on unwanted electical items, call Sweeep direct on or recycle@sweeep.co.uk to arrange your free removal of electrical items like fridges, washing machines or vacuum cleaners. This magazine has been approved by the Resident Communications and Editorial Panel. Following your feedback we are pleased to advise that customers can report any repair, 24 hours a day, 7 days a week by phoning: Who to contact % Customer First: am to 8pm (Mon-Fri) 9am to 1pm (Sat) Please note: Calls to customer services may be recorded or monitored for security and staff development purposes. Housing Services, Medway Council, Gun Wharf, Dock Road, Chatham, Kent ME4 4TR housing@medway.gov.uk Website: Minicom: This information can be made available in other formats from G8700 If you have any questions about this leaflet and you want to speak to someone in your own language please phone: Printed on recycled paper

3 Universal Credit Universal Credit will see multiple state benefits including Jobseeker s, Income Support, ESA, Tax Credits, and Housing Benefit etc merged into one payment called Universal Credit. Currently the plan is for payments to be made to claimants on a monthly basis in arrears. If you receive pension credits you will not be affected by the changes under Universal Credit. You will be notified of any future changes. This means you will need a bank account to receive the payment, it will also mean that you will need to budget to ensure your money sees you through the month. If you do not have an account see the banking section on page nine. If you currently get Housing Benefit, when Universal Credit is introduced and you are of working age, it is likely this money will be paid to you and you will then have to pay your rent to your landlord. To assist the government s preparation for the introduction of Universal Credit, some areas across England are running pilots to see how Universal Credit will work in practice. The Department for Work and Pensions is looking at how this affects vulnerable people and will work with the pilot areas to establish the best way to support those who are vulnerable. Universal Credit update: The government announced last month that Universal Credit will be rolled out later than originally planned. The recent announcement states that throughout it is expected that 400,000 people will be moved onto Universal Credit with the majority of people being moved onto Universal Credit throughout We will keep you informed about when Universal Credit will commence in Medway. Money matters - make it count Feeling the squeeze of the rise in the cost of living? Income not increasing? Use these helpful tips to make your money go further l Never go food shopping when you are hungry this will inevitably lead to impulse purchases that aren t essential, which leads us on to our second tip; l Make a shopping list, and stick to it planning your week s meals will help you see the real cost of food, try to avoid making it up as you go as you could end up buying food you won t use. l Revisit your monthly bills use the information in the following pages to identify your priority and non-priority expenditure and look at where you might be able to make savings. l Don t put off paying back anything you owe Council Tax should be cleared in the same year so if you don t pay for six months it will cost you twice as much for the next six months. l Plan for the worst we all have unexpected costs from time to time so by allowing extra room in your budget for small but regular savings can help you deal with those eventualities. l Shop smart two for one offers are not always the best deal, compare the price by weight to see the true cost. l Avoid bank charges these can be as high as 35 for one failed transaction, that s half of some people s weekly income. See an alternative to the banks in the following pages. l Maximise your entitlements if you are claiming Tax Credits or other benefits make sure you update changes in your circumstances as soon as the change happens. l Warm Home Discount scheme are you entitled? Find out more on page 10. l Avoid eating out this can prove expensive compared to a well-planned meal. Take some time to sit down and work out a budget. A full income and expenditure list can help you manage your money effectively and avoid finding yourself short; it may even help you to start saving a little. See pages five to eight. If you find it hard to manage your finances you may want to think about the banking products you use and how you can make best use of them. 3

4 Bargains on offer Do you need good quality furniture, white goods and household items at reasonable prices? Why not visit Emmaus or Abacus Furniture stores for pre-used furniture and household items. Emmaus Medway Secondhand Super Store High Street, Rochester, Kent, ME1 1HG. Phone: Medway Abacus Furniture Project 67 Cuxton Road, Strood, Kent, ME2 2BZ. Phone: Photographs: Flickr.com

5 MANAGING YOUR MONEY Fill in and keep this income and expenditure form to help you manage your money effectively. Your income Include normal take home pay. This means wages and salary after tax, National Insurance and pension contributions. Only include overtime payments if you receive these on a regular basis. Salary or wages Monthly () Your salary or wages (take home) Your partner s salary or wages (take home) Other salary or wages Total salary or wages Box 1 Other types of income Monthly () Maintenance or child support Boarders or lodgers Non-dependants contributions Student loans and grants Other income Total other income Box 2 Your benefits and tax credits Monthly () Jobseeker s Allowance (income based) Jobseeker s Allowance (contribution based) Income Support Working Tax Credit Child Tax Credit Child Benefit Employment and Support Allowance or Statutory Sick Pay Disability Living Allowance or Attendance Allowance Carer s Allowance Housing Benefit or Local Housing Allowance Council Tax Benefit Other (e.g. maternity benefits) Other benefits or tax credits Total benefits Box 3 Your pensions Monthly () State Pensions Private or work pensions Pension Credit Other Pensions Total pensions Box 4 TOTAL INCOME (Boxes ) Box 5 5

6 Your outgoings Include all your household s outgoings. Essential spending Monthly () Rent Building and contents insurance Pension and life insurance Council Tax Gas Electricity Water TV Licence Magistrates Court fines Maintenance or child support Hire purchase or conditional sale Childcare costs Adult care costs Total essential spending Box 6 Phone Monthly () Home phone Mobile phone Other phone costs Total phone costs Box 7 6 Travel Monthly () Public transport (work, school, shopping etc) Other travel costs (taxis) Car insurance Road tax Fuel (petrol, diesel, oil) MOT and car maintenance Breakdown or recovery Parking charges or toll road charges Total travel costs Box 8 Housekeeping Monthly () Food and milk Cleaning and toiletries Newspapers and magazines Cigarettes, tobacco and sweets Alcohol Laundry and dry cleaning Clothing and footwear Nappy and baby items Pet food Total housekeeping costs Box 9

7 Other spending Monthly () Health costs (dentist, prescriptions, glasses, health insurance) Repairs, house maintenance, window cleaning Hairdressing or haircuts Cable, satellite and internet TV, video and other appliance rental School meals and meals at work Pocket money and school trips Lottery, pools Hobbies, leisure or sport (pub, outings and gym) Gifts (Christmas, birthdays, charity) Vet bills and pet insurance Total essential spending Box 10 TOTAL OUTGOINGS (Boxes ) Box 11 How much money left to pay creditors? Total income Box 5 minus Total outgoings Box 11 TOTAL MONEY FOR ALL CREDITORS Box 12 Your priority debts List any priority debts that you have and payments that you have agreed to make. Total owed () Monthly repayment () Rent arrears Magistrates Court fine arrears Council Tax arrears Maintenance or child support arrears Gas arrears Electricity arrears Other utilities arrears (water) Hire purchase arrears Conditional sale arrears Other priority debts Total essential priority debt repayments Box 13 7

8 How much money left for non-priority debts? Total money for all creditors Box 12 minus priority debts repaymentsoutgoings Box 13 TOTAL MONEY FOR NON-PRIORITY DEBTS Box 14 Your non-priority debts List your non-priority creditors. Total owed () Monthly repayment () Total owed to non-priority creditors Box 15 Total repayments Box 16 Who can help? If you have any concerns or would like advice on managing your money then you can contact these services: l National Debtline l Medway Citizens Advice Bureau l Money Advice Service l Stepchange

9 Banking what s my alternative? Most high street banks offer basic bank accounts that are free to set up and free to use. However, they do not offer overdraft facilities, but do include unpaid direct debit/standing order fees ranging from 6 to 25 for each failed transaction. On basic bank accounts typically you do not earn interest on any money you have. All have different fees so it is worth comparing the fees and remembering that it might not be your bank that offers you the best deal. So how do you take control of the fees? A prepayment card is the answer. Quite simply, if you do not have available funds on your card it will not work, meaning that you do not incur expensive fees. However they are not free. They usually include a monthly fee and there are usually costs associated with using the card, but they are usually work out cheaper than incurring failed transaction fees. loans. l A CredEcard account with a Visa card and envelope facility to budget for your essential bills, access to exclusive discounts and cashback. For more information visit Medway Credit Union at Unit 88-89, The Pentagon Shopping Centre, Chatham, ME4 4HY (above Sainsbury s). l A management fee of 2 a month will be charged. There may be other fees that apply, which the Medway Credit Union will confirm. Medway Council are promoting the CredEcard and will be paying the fees to open an account for the first 100 Medway Council housing tenants/leaseholders that apply for this new bank account before 31 March Medway Credit Union has teamed up with the Contis Group to deliver the CredEcard in Medway; this is a prepayment card that can be used like a bank account because it has a sort code and account number. The account has the following features: l standing order; l make payments over the phone; l make payments on the internet; l earn cash back at certain stores; l additional cards available; l envelope facility* (Jam Jars). * The envelope facility enables you to place sums of money in different envelopes in your account so that this money does not show as available funds so that you don t accidentally spend it. Opening a CredEcard account with Medway Credit Union will cost you 8 and for this you will get: l A Credit Union account to start saving a little, which is your first step in gaining access to low cost 9

10 Debt matters Almost all of us have some sort of debt, be it an overdraft or bills that are in arrears. Having debt might not seem like an issue but if it is having a negative effect on you debt matters. It is all too easy to bury your head in the sand and hope it will all go away but it is much better (as with all of your finances) to work out where you are and to take control of your situation. Stepchange are a debt advice charity that can provide you with free confidential advice on how best to deal with your situation. If you are unsure of where to start or the best way of dealing with your situation you can ffreefone (also free from mobiles). If you do not feel comfortable talking to someone, the Stepchange website ( has a Debt Remedy tool which will provide you with a personal action plan and debt advice pack based on your circumstances. Stepchange can provide you with a range of services and solutions such as: l Debt Management Plan (DMP) With a Stepchange Debt Charity DMP we can help you repay your debts by making one affordable payment each month. A DMP is flexible, so the amount you pay can change depending on your circumstances. l Individual Voluntary Agreement (IVA) An IVA is a legally binding agreement which can help you pay back a reduced amount to settle your debts, usually over five or six years. At the end of this time your remaining debt is written off. l Debt Relief Order (DRO) A DRO might be right for you if you owe less than 15,000, have a low income and very few assets. If you are advised that a DRO is the best solution for you, Stepchange Debt Charity can help you apply. l Bankruptcy Bankruptcy is a way of managing serious debt, particularly if you are unable to pay back the money you owe in a reasonable amount of time. However there are costs involved, Stepchange will be able to provide you with further information. Warm Homes Discount Scheme If you don t ask for it, you might not get it Did you know that you could be entitled to a discount of 135 from your energy bill this winter? The largest energy companies are required by law to offer this discount to customers meeting the criteria that they set out. There are different sets of qualifying criteria depending on your circumstances. You should be entitled if: l you are over 75 years old and receiving the Guaranteed Credit element of Pension Credit. l you are under 75 years old and receiving only the Guaranteed Credit element of Pension Credit and you are not receiving the Savings element. If none of the above applies you may still be eligible if you are in receipt of: l Income Support or Income Based Job Seekers Allowance or Income Related Employment Support Allowance and l have a child under the age of five or anyone in your household gets Disability Living Allowance or Personal Independent Payments. The criteria varies from company to company, so either telephone your energy company to find out more, or use the following website for further information: 10

11 Get online The internet is a great place to find out information and get help or advice. If you are not on the internet at home you can access it for free at all of Medway s libraries. If you do not currently have a computer or an internet connection at home, but are interested, then visit Here you will be able to find affordable PCs and laptops and advice on internet packages. Did you know you could be eligible for discounted rates for phone line and internet connections at home? BT are currently offering the BT Basic package for every three months and this includes 4.50 worth of calls. You can usually get BT Basic if you're claiming one of these benefits: l Income Support; l Income-based Jobseeker's Allowance; l Pensions Credit (Guaranteed Credit); l Employment Support Allowance (Income related); l Universal Credit (and are on zero earnings). If you are interested in this package then you can contact BT on for more information and an application form. You will need to be the named account holder to apply for this. Making the most of your money workshops. l Do you want to know how benefit changes may affect you? l Do you want to make your money go further? l Do you want to know how to avoid debt? If the answer is yes to any of these questions then contact to find out about our helpful session and top tips on Making the most of your money workshop. Completely free, fun and friendly. Alternatively we can provide a 1-1 session by telephone and to discuss more personal debt or money issues. You may find the following websites useful for managing and making the most of your money. l l l l l l 11

12 Meet the team The Income and Welfare Reform teams provide support, advice and information to assist in all aspects of financial management. The income officers assist our tenants with maintaining their rent accounts in accordance with the terms of the tenancy. Where appropriate the Income Team will refer tenants and leaseholders to the Welfare Reform Team where more in-depth financial assistance and budgeting advice can be provided. Michael Opreshko Income Manager Chris Rourke Income Team Housing Officer Adetoun Ajayi Income Team Housing Officer Sarah Thompson Income Team Housing Officer Tom Austin Welfare Reform Team Officer Myra Dicken Welfare Reform Team Officer Welfare Reform Team f reephone: