A guide to paying your rent and basic bank accounts

A guide to paying your rent and basic bank accounts

Benefits Section If you would like to receive this information in another language or in another format such as large print, Braille or on audio tape, please phone the Benefit Section on 01472 323720. We can also arrange for a translation service. Please ring the Benefit Section on 01472 323720 What if I want to comment on your service? You should get in touch with us. We would like to know what you think about this booklet and about the service we provide to you. You will find our contact details on the back of this booklet. 02

www.nelincs.gov.uk Introduction This booklet gives you information on: paying your rent; basic bank accounts; and agencies and organisations that may be able to help you if you have any debt or financial problems. Paying your rent How will you pay my Housing Benefit? If you rent from a registered social landlord, for example Shoreline Housing Partnership or Longhurst and Havelok Homes, you can choose to have your payments made to you or your landlord. If you choose to have your Housing Benefit paid to you, we will pay you by Bacs. Bacs is a transfer from our bank account to your bank account. If you rent from a private landlord and we work out your claim under the Local Housing Allowance rules, we will usually pay your Housing Benefit direct to you using Bacs direct into your bank account. If you do not have a bank account, we may pay your Housing Benefit to your landlord for a short time until you open one. If you are likely to have difficulty paying your rent, you can ask us to pay your Housing Benefit direct to your landlord. If you want to know more about this, please see our booklet Vulnerability: a guide for claimants. How can I pay my rent? The easiest way to pay your rent is when you have your Housing Benefit paid into a bank or building society 03

Benefits Section account. That way you can arrange to pay the rent to your landlord automatically, by a standing order. As long as you have enough money in your account, you will not have to worry about remembering to pay your rent and your landlord will know they will get your rent automatically. If you do not already have a bank or building society account, you will have to set one up. For more information, see the section Basic bank accounts later in this booklet. What will happen if I do not use my benefit to pay my rent? As a tenant you are responsible for paying your rent to your landlord. This is the same as for tenants who do not get Housing Benefit. If you do not pay your rent your landlord may ask us to pay your Housing Benefit to them. Or, they may take other action to get back the money you owe them, which could include evicting you from your home. Eviction means that: you will lose your home; we may not pay your benefit direct to you in the future; you may have difficulty finding new accommodation, as your landlord is unlikely to give you a reference; you will still have to pay your landlord the money you owe and possibly extra money to cover any court costs; and we may not find you another home as we may see that you have made yourself intentionally homeless. What if I think I am unlikely to pay my rent? There may be lots of reasons why you may think you may have difficulty 04

www.nelincs.gov.uk paying your rent. This may be because you: have severe debt problems; have a recent county court judgement (CCJ) against you; have a bankruptcy order against you; have some of your benefits paid direct to a gas, electricity or water company by the DWP; or are getting help from a homeless charity. Or, you may have difficulty paying your rent if you: have learning difficulties; have an illness that stops you managing your day-today activities; cannot read English; cannot speak English; have addictions, for example to drugs, alcohol or gambling; are leaving a home where you suffered domestic violence; are leaving care; are leaving prison; or are homeless. There may be other reasons why you may have difficulties. If you feel you are unlikely to pay your rent, please contact us as soon as possible. Our contact details are on the back of this booklet. Note You will need to give us proof of the above, but if you have any difficulties or questions please contact us. What if I already have a bank account and it is overdrawn? If your account is consistently overdrawn and you are worried that your Housing Benefit will be used to reduce any overdraft or pay charges rather than pay your rent, contact us. We may be able to pay your Housing Benefit to your landlord, but we would need to see your last two months bank statements (or your most recent bank statements 05

Benefits Section if you do not receive them monthly). Once we receive this information we will make a decision as soon as possible. If we decide to pay your landlord we will send a letter to you and your landlord explaining this, and giving you information on your rights to appeal and how often we will review this decision. You or your landlord may appeal against our decision if you disagree with it. Can I protect any regular funds that are paid into my account? If your account is overdrawn, you can choose how to have any further money paid into your account using the first right of appropriation. This allows you to put aside any money in your account for specific events and needs. You should write to your bank giving at least seven days notice before any money goes into your account. The bank may choose to ignore this, depending on your credit history, so you should always contact your bank to check if this is possible. This is usually only a short-term solution and if you want to protect your Housing Benefit payments in the long term, you could consider opening a basic bank account for us to pay your Housing Benefit into. Or, if you would like more help, you can contact your local citizens advice bureau, Community Advice Service or Moneyline. You can find their contact details at the end of this booklet. 06

www.nelincs.gov.uk I do not have a bank account. If you do not have a bank account, you will need to open one. The next section will help you. Once you have opened your account and we are paying your Housing Benefit, you can then set up a standing order to pay your rent to your landlord. You may also choose to have any other income or benefits paid into the account. 07

Benefits Section 08

www.nelincs.gov.uk Basic bank accounts What is a basic bank account? A basic bank account is an account which does not allow you to go overdrawn. You can make payments into one and you can set up direct debits and standing orders to pay bills automatically from the account. With a basic bank account you get a cash card which you can use to take money out at a bank machine (hole in the wall). Some offer a debit card that you can pay for items with, and get cashback, but with a basic bank account these will only work if there is enough money in your account. You don t get a chequebook and you can t take out more money than is in the account (go overdrawn). With a basic bank account you can: have wages, benefits, pensions or tax credits paid in, which will mean you can take money out as soon as it is in your account; pay cheques in, but remember you will need to wait for them to clear before you can withdraw any money (this can take from three to 10 working days depending on the bank or building society); withdraw money at cash machines as well as at a post office (this is usually free but some cash machines may make a charge, check this before withdrawing any money); pay bills by direct debit, and this can mean you may pay less for some of them, especially gas, electric or phone bills; and set up standing orders to pay your rent or other bills. 09

Benefits Section With a basic bank account you: don t get a chequebook; and can t go overdrawn. Choosing a basic bank account When you choose a basic bank account you may want to ask yourself the following questions. Can I use a cash machine, free of charge near where I live? Is there a branch of the bank or building society near where I live so that I can pay money in and check my account? Can I use the bank s counter to check my balance, make deposits and withdrawals? Can I pay money in or take money out at a post office? This may be important to you. Will I get the services I need like a debit card or standing orders? What will I be charged if I do not pay direct debits or standing orders? How old do I have to be? You usually have to be 16 or sometimes 18 - but check with the bank. If the minimum age is 18, there are usually other accounts for younger people. How do I keep track of my money? You will usually get a statement in the post every three months, which shows what money has been paid in or out of your account. But you can ask to receive these more regularly (for example, monthly). You can also get a mini statement from most cash machines that will usually show the 10 most recent transactions. 10

www.nelincs.gov.uk Most basic bank accounts also allow you to check your balance at a post office. What if there is not enough money in my account? You can t go overdrawn with a basic bank account because they do not offer an overdraft. So if you pay your bills by direct debit or standing order and there isn t enough money in your account, the bank will not make the payment. The bank may charge you a fee if this happens. You will still have to pay the bill as well as any charge. It is really important to make sure you have enough money in the account to pay your bills. If you are having difficulties with your bank account or receive large or repeated charges, you should contact one of the organisations listed on page 14 to help you get on top of your finances. Can I open a basic bank account whatever my credit history? Everyone should be able to open a basic bank account. The bank or building society may want to check your credit history to see if you have any county court judgements (CCJs) against you or if you have been made bankrupt. If you have a bankruptcy order against you some banks may refuse to give you an account (but check with the bank as some may still let you open an account). You can also get more information from the Financial Services Authority leaflet Money made clear, which you can get at most banks, or you can visit their website at www. moneymadeclear.fsa.gov. uk. 11

Benefits Section What proof do I need to open an account and why? The law says that banks and building societies have to check the identity of their new customers. This is to help stop criminal activities like money laundering. They will explain which documents they need as proof of who you are and where you live, although this may vary from one bank or building society to another. For proof of who you are, they may ask for government documents: with a photograph (such as a valid passport); or without a photograph (such as a valid old-style driving licence) plus another document from an approved organisation. If you do not have any of these documents they may accept other documents such as a letter from: a government department or local council confirming your right to state benefits (for example, pension, Council Tax Benefit or Housing Benefit). They may even accept a letter or statement from an appropriate person who knows you, such as a social worker or teacher, saying that you are who you say you are. For proof of where you live, they may ask for: utility bills, for example gas, electricity or phone bills (but not a mobile-phone bill); a water bill; a Council Tax bill; or a TV licence renewal notice. If you have difficulties proving your identity or where you live, speak to the bank or building society, or ask for your application to be passed on to someone 12

www.nelincs.gov.uk at the bank who is able to decide on accounts in exceptional circumstances. I have a Post Office card account and I do not want to open a bank account These accounts were going to be closed, but the DWP have renewed the contract with the Post Office until 2015. However, we cannot pay Housing Benefit into these accounts, and you will need to open a basic bank account and set up a standing order or direct debit to pay your rent to your landlord or letting agent. We will be able to pay your benefits into this account and have this up and running effectively before the Post Office accounts are closed. What s the next step? Decide which account is best for you. Have all the proof you need to open an account ready - see the table on pages 16 and 17 of this booklet which gives you information about the types of documents a bank will need. If you need your wages, State Pension or tax credits paid directly into your account, talk to your wages office or the pension or benefit office dealing with your claim to arrange this. If you want to set up a standing order to pay your rent or household bills, ask your landlord or utility company for a standing order or direct-debit form. 13

Benefits Section Where can I get help? You can always phone or visit us for help and advice (see the back of this booklet for our contact details) or you could contact one of the following local or national agencies. Citizens Advice Citizens Advice help people sort out their legal, money and other problems by providing free, independent and confidential advice. They also put pressure on the Government and those who create policies. Contact details 4 Town Hall Street Grimsby North East Lincolnshire DN31 1HN Phone: 01472 252500 Website: www.citizensadvice.org.uk Open Monday to Friday from 9am to 12 noon and 1pm to 4pm. The Community Advice Service (CAS) CAS provides high-quality advice, help and representation on state benefits, housing, homelessness, debt, employment and general legal questions. Contact details 10-16 Kent Street Grimsby North East Lincolnshire DN32 7DG Phone: 01472 240256 Website: www.emct.org.uk Opening times Drop-in sessions - Monday to Friday 9am to 12 noon They hold drop-in sessions about debt every Monday and Wednesday morning from 9.30am to 12 noon. You can make an appointment every afternoon from 1.30pm. They also provide advice over the phone Monday to Friday from 9am to 4pm. 14

www.nelincs.gov.uk Age Concern (advice and drop-in sessions) The Elms Abbey Road Grimsby North East Lincolnshire DN32 0HW Thursdays 9.30am to 12 noon Second Avenue Resource Centre Second Avenue Nunsthorpe Grimsby North East Lincolnshire DN33 1NU You can drop in for advice every Wednesday morning from 9am to 12 noon. Your Place 236 Wellington Street Grimsby North East Lincolnshire DN32 7JP They hold drop-in sessions every Tuesday from 10am to 1pm. 15

Benefits Section Moneyline Moneyline are a not-for-profit company who provide advice, help to open basic bank accounts and low-cost loans. Whether you are a private tenant or homeowner, whether you are working or on state benefits, contact them for friendly, free advice. 238 Freeman Street Grimsby North East Lincolnshire DN32 9DR Phone: 01472 267600 Civic Centre Immingham North East Lincolnshire DN40 1QF Phone: 01469 572763 Website: www.elmline.co.uk Open Monday to Friday from 9am to 4pm Harbour Place Day Centre Harbour Place Day Centre (HPDC) is a specialist day-care centre, supporting the needs of some of the hardest-toreach and socially excluded people in our community. They help people who are homeless, lonely, those with drink or drug problems, those with mental-health problems, young people and care leavers (16 and older), elderly people, single parents, ex-offenders, people who are unemployed, disabled people and those who have longterm health conditions. 42 Albert Street West Grimsby North east Lincolnshire DN32 7SL Phone: 01472 344118 Website: www.harbourplace.org.uk Email: harbourplace@ btconnect.com Open Monday to Friday from 10am to 3pm. 16

www.nelincs.gov.uk Longhurst and Havelok Homes L & H is a leading provider of affordable homes for rent and sale, as well as a specialist provider of retirement leasehold schemes, and care and support services. Hainton Chambers Hainton Avenue Grimsby North East Lincolnshire DN32 9BB Phone: 01472 256321 Website: www.landh.org.uk Open Monday to Friday from 8.45am to 5pm. North East Lincolnshire Credit Union North East Lincolnshire Credit Union is a not-for-profit organisation that offers easy ways to save and gives access to low-cost affordable loans. They can also help you open a basic bank account. For more information and help, contact them. Credit Union Office St James House St James Square Grimsby North East Lincolnshire DN31 1EP Phone: 01472 361990 Email: nelcreditunion@gmail.com Website: www.nelcu.co.uk 17

Benefits Section Christians Against Poverty Christians Against Poverty (CAP) are a counselling charity. Their headquarters are in Bradford and have recently opened up an office in Grimsby. Their unique and non-judgemental approach means you are supported all the way as you take each step out of debt. If you want to know more, their contact details are shown below. Phone: 0800 328 0006 City Church 251-259 Freeman Street Grimsby North East Lincolnshire DN32 9DW Email: Grimsby@capuk.org Website: www.capuk.org Have you borrowed money from a loan shark? Had a cash loan which keeps growing even when you pay? Had your benefit or bank card taken from you? Been threatened when you couldn t pay? If in doubt, give us a shout! Yorkshire and Humber Illegal Money Lending Team works with North East Lincolnshire Trading Standards to make sure that loan sharks are brought to justice. For free, confidential help and advice, speak to us on 0300 555 2222 (local call rate and you can use any minutes you get free with your mobile contract) 18

www.nelincs.gov.uk Money Advice Service (used to be the Consumer Financial Education Body) Got a question about money? Our trained staff are here to help you work out what s right for you. Whatever your question, we re here to help and, if we don t know the answer, we will tell you how to contact someone who does. No problem or question is too small - try us and see. Phone us Monday to Friday - 8am to 8pm (not bank holidays) Phone - 0300 500 5000 (see below) Typetalk - 18001 0300 500 5000 (see below) From overseas - +44 20 7943 0500 (main switchboard) The cost of an 0300 number is the same as calling a normal phone number. If your calls are free, then it s free, even from mobiles. If you prefer, we can call you back during our opening hours. Or, for more information, see our website (www. Moneymadeclear.org.uk) and our guide to basic bank accounts or follow this link - http://www.moneymadeclear. org.uk/pdfs/bank_accounts.pdf 19

Benefits Section What proof do I need to open a basic bank account? Proof of your address Bank Account name Utility bills (such as a gas or electricity bill) TV licence renewal notice Letter from HM Revenue & Customs Water bill Abbey Bank PLC Alliance & Leicester Barclays Basic Bank Account Basic Cash Account Cash Card Account Yes No Yes Yes Yes No Yes Yes Yes Yes Yes Yes Co-Op Bank Cashminder Yes No Yes Yes HBOS (Halifax) Easycash Yes Yes Yes Yes HSBC Basic Bank Account Yes No Yes Yes Lloyds TSB PLC Nationwide Building Society National Westminster Royal Bank of Scotland Cash Account Yes Yes Yes Yes Flex Cash Card Yes No Yes Yes Step Account Yes No Yes Yes Key Account Yes Yes Yes Yes Yorkshire Bank Readycash Yes Yes Yes Yes You need two separate documents. Some examples are listed above, and you will need one from each section (one from the address section and one from the name section). 20

www.nelincs.gov.uk Proof of your name Council Tax bill Driving licence Worker ID cards Passport Letters about benefits or tax credit Letters about Housing Benefit A disabled driver s pass Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Note You cannot use mobile-phone bills as proof of your identity or address. If you have any questions about any of the proof you need, always speak to the bank they will try and help you if possible. All utility bills, benefit letters and notifications need to be dated in the current year and have your current address on them. 21

Benefits Section Other useful booklets The following booklets about Housing Benefit and Council Tax Benefit are available from our Benefit Section. 1 How we work out your benefit 2 Your Guide to Housing and Council Tax Benefit 3 Your guide to Non-dependant deductions 4 Your guide to Backdating benefit 5 Housing Benefit Information for landlords 6 Get your benefit off to a flying start 7 Benefit Appeals 8 Money worries? how to cope and manage a budget 9 Vulnerability A guide for claimants 10 Discretionary Housing Payments 11 Free school meals 12 A guide to paying your rent and basic bank accounts 13 A guide to welfare benefits The following booklets about Council Tax are also available from our Benefit Section. 1 Council Tax Explained 2 Council Tax Discounts and Exemptions 22

www.nelincs.gov.uk Here is a list of libraries where you can hand in claim forms and proof we ask for. Please remember you cannot get advice about benefits from these libraries. Grimsby Central Library, Town Hall Square, Grimsby Cleethorpes Library, Alexandra Road, Cleethorpes Nunsthorpe Library, Sutcliffe Avenue, Grimsby Willows Library, Binbrook Way, Grimsby Laceby Library, Cooper Lane, Laceby Humberston Library, Church Lane, Humberston Grant Thorold Library, Durban Road, Grimsby Scartho Learning Centre and Library, St Giles Avenue, Grimsby Immingham Library, Pelham Road, Immingham Waltham Library, High Street, Waltham 23

How to get in touch with us Here are the ways you can get in touch with us. By letter: Housing Benefits Section North East Lincolnshire Council Finance Department FREEPOST NEA103666 Cleethorpes DN35 8BR By phone: 01472 323710 01472 323830 01472 323720 Fax: 01472 323800 Our staff are available to answer calls Monday to Friday from 8.30am to 5.30pm Website: www.nelincs.gov.uk Email: benefits@nelincs.gov.uk In person: You can call at any of our Customer Access Points. You can find them at the following locations: Municipal Offices, Town Hall Square, Grimsby (Open Mon to Fri from 9am to 5pm) Civic Offices, Knoll Street, Cleethorpes (Open Mon to Fri from 9am to 5pm) Kennedy Way, Immingham (Open Mon and Fri from 9am to 4pm and Wed from 10am to 2pm) Reference FIN-BEN-12 February 2011