BEE MONEY WISE

The Cost of

Running a Home

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Introduction

If you already have a place of your own you’ll know just how much it costs to run. On top of rent and council tax, there are services such as gas, electricity and water.

If this is the first time you have thought about setting up your own home there are extra costs you will need to think about in addition to those described above.

You will need to think about the cost of furniture and ensuring you have all the essential household items. These may include beds, a settee, table cooker, fridge, washing machine and carpets.

This guide aims to give an idea of those costs that you will have to budget for when running your own home. You need to make sure that you can afford these costs before you accept any offer of a home that Darlington Borough Council makes to you.

At Darlington Borough Council the Money Wise Team is here to help our tenants manage their money.

If it’s your first tenancy we will help you look at all costs involved in furnishing and running a home.

We can also help with budgeting and making the most of your money

For those needing a little bit more help with money or debts we can advise you how:

♦ to stay out of debt

♦ to stop your debts increasing

♦ to look for the best deals for you

All figures provided in this publication are estimates and the true costs will vary depending upon your own personal circumstances. You must also take into account any changes in utility or supplier costs from the time of publication as the market can fluctuate dramatically.

We can help you to:

♦ keep your rent up to date ♦ get the right Housing Benefit, Council Tax Benefit or other welfare benefits ♦ Complete benefit checks and advise you how to claim for additional benefits ♦ manage money and deal with debt ♦ save on gas and electricity ♦ find good deals on furniture and electrical goods ♦ Signpost you to get specialist help with debt

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RENT PAYMENTS Darlington Borough Council have numerous ways for you to pay your rent:

♦ On line ♦ Direct Debit ♦ Standing Order ♦ Debit & Credit Card ♦ Post Office / Pay Zone ♦ Customer Services Centre, Town Hall ♦ By post

For more information go to the Darlington Borough Council website. www.darlington.gov.uk/housing

The Bedroom Tax means you will receive less housing benefit if you live in a Darlington Borough Council property that is deemed to have one or more spare bedrooms.

If you are on a low income you may be entitled to Housing Benefit, a Money Wise Officer is available to calculate any entitlement to Housing Benefit and to help you make a claim when you sign for any offered Darlington Borough Council tenancy, or you can check your own entitlement using https://benefits-calculator.turn2us.org.uk/AboutYou

Failure to keep your rent account up to date will result in you losing your home.

COUNCIL TAX

Council tax is payable in addition to rent for general services provided by Darlington Borough Council or which the council has to contribute to i.e. Police and the Fire Service.

Wherever you live, you can check your current Council Tax band at www.voa.gov.uk

If you live in a property on your own you will be entitled to 25% discount off your Council Tax bill.

Everyone is expected to pay a minimum 20% of their council tax charge, however, depending on your circumstances you may be entitled to Council Tax Support. Advice on how to apply is available at www.darlington.gov.uk/council-tax-and-benefits/council-tax/council-tax-support/ .

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UTILITIES

Water

Water rates are calculated on the rateable value of your property and for Darlington Council tenants these are included in the rent. Typical water rate costs are £7.00 - £7.50 a week. Some properties may have been fitted with a water meter you will be told when you sign for a property. If this is the case you will be charged for the amount of water you use instead of paying a fixed amount. If a water meter has been fitted you can’t have it removed. If there isn’t one fitted to your home and you think having one fitted would save you money, please contact Northumbrian Water, who supply the water to Darlington Homes. Help is available to support customers with limited income to afford to pay their current water charges through the Northumbrian Water Support Plus reduced tariff scheme, for more information go to www.nwl.co.uk/your-home/your-account/SupportPLUS.aspx .

Top 5 tips for water efficiency

♦ Take a shower instead of a bath. (Remember power showers can use more water than baths)

♦ Turn off the taps when brushing your teeth, washing your hands or shaving. ♦ Use a bowl for preparing and washing your vegetables. ♦ Repair dripping taps. ♦ Make full use of your washing machine, always wait for a full load before

switching it on.

Gas & Electricity

You will need to heat and light your home, cook and operate electrical appliances. There are several ways we can help you reduce your gas and electricity bills. For energy saving tips go to www.energy.gov/energysaver/energy-saver-guide-tips-saving-money-and-energy-home

The Warm Home Discount Scheme

The Warm Home Discount Scheme is run by energy companies. If you are on a low income you may be able to get this discount, but you have to contact each energy company directly to check their criteria for giving the discount. The money isn’t paid to you, but is a one – off discount on your electricity bill, usually paid between October and March.

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Winter fuel payments

If you have reached the qualifying age for pension credit you will get a one off annual payment between £100 and £300 depending on your circumstances. These are normally automatic payments and are paid with your usual benefits. If you have not received your payment, Money Wise can help you claim.

Switching supplier

It is always a good idea to shop around for the best deal for you. If you want to do this yourself you can either ring:

My Home Energy Switch on 0800 051 5346

Money Supermarket on 0845 345 1296

Or check out the following websites:

www.moneysupermarket.com

www.uswitch.com

www.gocompare.com

www.myhomeenergyswitch.org.uk

www.confused.com

www.moneyexpert.com

www.comparethemarket.com

www.moneysavingexpert.com

It is fast and simple to switch and they will take care of all the paperwork for you.

Top 5 tips for energy efficiency

♦ Turn your thermostat down. Reducing the room temperature by 1 degree could cut your heating bills by up to 10%.

♦ Close your curtains at dusk to stop heat escaping through the windows. ♦ Turn off lights when you leave the room ♦ Don’t leave appliances on standby and remember not to leave laptops and mobile

phones on charge unnecessarily. ♦ Only boil as much water as you need in the kettle.

TV Licence

If you have a TV in your home you must buy a TV licence. If you don’t you could receive a large fine. The cost of a TV licence is currently £145.50 per year. If you are over 75 you receive a free TV licence. You can receive a 50% reduction on the TV licence fee if you’re blind/ severely sight impaired. For more information go to https://www.tvlicensing.co.uk

NON-PRIORITY EXPENDITURE

Cable /Satellite /Internet

Many people are choosing to subscribe to cable or satellite TV and internet access. The average cost of a package is between £21 and £80 per month. Cable and

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satellite companies charge varying amounts, you will need to check with individual suppliers for details.

Landline / Mobile Phones

Line rental and mobile contract costs per month vary between suppliers as do the cost of calls you will need to check with individual suppliers for details.

Price comparison websites usually have the Top 10 Broadband and mobile deals currently available. More information can be found at the following sites: www.uswitch.com or www.moneysavingexpert.com

Furnishing your home

Darlington Borough Council can provide various furniture packages to help you set up your new home. The furniture is supplied as a condition of the tenancy. (If you vacate the property you must leave all of the goods behind.) For more information please discuss with a housing officer.

The weekly charges for the packages vary:

♦ White goods only - includes an electric cooker, washing machine and fridge/freezer. Fitting and plumbing is included.

♦ A fully furnished tenancy – includes beds, wardrobes and chests of drawers, three piece suite and chair, kitchen table and chairs and white goods (as above).

For more information, go to www.darlington.gov.uk/housing/your-tenancy/

You can also find affordable furniture for your home in Darlington by contacting Frade or Kings Church at www.frade.co.uk or www.kingschurchdarlington.org/furniture

Contents insurance

Your furniture, decorations and belongings are not insured against fire, theft, vandalism or water damage by your landlord. Using the diagram below add up how much money it would cost to replace your belongings, if they were lost or damaged, would you be able to replace them?

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Royal Sun Alliance plc offers Simple Household Contents Insurance, to Darlington council tenants. This a low cost insurance cover, offering peace of mind. Further information is available from www.darlington.gov.uk/housing/your-tenancy/ or call 01325 405333

Food and Other Household Expenses

For food and other household expenses you should allow on average:

♦ £35 - £45 per week, for a single adult ♦ £60 - £70 per week, for a couple ♦ £15 - £25 per week, per child

If any member of your household has medical conditions or needs a special diet, you may need to allow more.

School Meals

If your children have school meals you will need to budget for this.

Free school meals can be applied for when you begin receiving any of the following DWP benefits:

♦ Income Support. ♦ Income-based Jobseeker's Allowance. ♦ Income-related Employment and Support Allowance. ♦ Support under Part VI of the Immigration and Asylum Act 1999. ♦ The Guarantee element of State Pension Credit.

Clothing

You will need to include an amount for clothing in you budget for the whole family

Travel

Car - remember if you own your own car you need to allow for the amount you spend on petrol, maintenance, servicing, tax insurance.

Public Transport – if you use public transport on a regular basis, consider buying a weekly travel pass as this might be cheaper than paying daily charges.

DISCLAIMER

Darlington Borough Council has taken all reasonable care to ensure the information provided in this document is accurate. However, all figures given are for illustration purposes only and will vary depending on your circumstances. Darlington Borough Council will not be held responsible for any direct or indirect loss. Damage or inconvenience caused as a result of any reliance, by any person, on any inaccuracy, omission or error within this document.

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MANAGING YOUR MONEY

Bank Accounts

There are lots of bank accounts to choose from and many different companies to provide these. You can use the link www.moneyadviceservice.org.uk to find out what high street banks can provide.

Darlington Credit Union

Helping the people of Darlington build a better financial future

You can open a current account, savings account or budgeting account with the Darlington credit union. Further information is available from www.darlingtoncreditunion.co.uk or call 01325 529829

One option from Darlington Credit Union is a Budget Account taking the stress away from managing your rent, bills and other payments, ensuring all your bills are paid on time.

How it works:

♦ All your income is paid into a saver account ♦ Money is then transferred from your savers account into your budget account

which will cover your rent and other payments required. ♦ You then have access to the money left in the savings account to spend, save or

use however you like.

Are you missing out on money?

Since 2013, there have been many changes to the benefits system. Money Wise can help you understand what the changes are and whether they affect you.

For further information www.entitledto.co.uk is a simple guide to find out how you are affected personally by the benefit changes using their benefits calculator.

Community support maybe available to help with furnishing your property.

Applications for to the community support scheme must be made to Citizen Advice. http://darlingtoncab.co.uk/Initiatives/Community-Support

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The Money Wise budgeting guide

Budgeting is making sure that you're spending less than you're bringing in and planning for both the short and long-term, including emergencies. Budgeting gives you a true assessment of your finances.

To start budgeting you need to ask yourself a couple of questions.

1. Do I spend more than I earn?

Budgeting is about the money you have coming in and going out. Major overspending can lead to severe problems.

2. What is my income?

Calculate exactly how much money you have coming in. List all your regular income, including wages and benefits.

3. What are my outgoings?

Calculate how much you’re spending each week or month. Look at your bank statements, household bills and credit card bills to get a realistic idea of where your cash is going.

* Remember to take into account occasional spending, not just monthly expenditure. Think about the cost of Christmas, birthdays, holidays, insurance, car services and MOTs.

You can calculate your budget using the tables below to work out what you’re earning and spending. This will help identify where you might be able to cut costs *Make sure all that all your incomings and outgoings are changed in to either weekly or monthly amounts.

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Money coming in

AMOUNT

FREQUENCY

WEEKLY / MONTHLY

Wages

Universal credit

Job seekers allowance

Income Support

ESA

Child Benefit

Child Tax Credit

Pension

Pension Credit

Maintenance

Other

Total amount (A)

Money you spend

The tool will be most useful if you use accurate figures. Try to find your most recent: ♦ bank statements ♦ payslips ♦ debit and credit card statements or bills ♦ receipts for things you usually pay for in cash Make sure you include all your expenses, for example money you spend on your partner or family

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AMOUNT

FREQUENCY

WEEKLY/ MONTHLY

Rent (after housing benefit)

Council Tax

Water

Gas

Electricity

Contents insurance

Other insurance

TV licence

Cable / satellite/ internet

Food

Household expenses

Clothing

Car tax / MOT/ insurance

Petrol / diesel

Public transport

Childcare costs

School meals

Credit card payments

Loan repayments

Store cards

Telephone payments

Total amount (B)

Now take your total outgoings (B) from your total income (A)

TOTAL A TOTAL B £

- =

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If the amount remaining is positive you can afford to run your home based on your current circumstances. If this figure is negative you are paying more out than you get in each week and you are at risk of debt WHEN MOVING IN TO YOUR NEW HOME

One of your first important tasks is to take readings of your gas and electricity meters and tell the utility companies of ownership and provide them with your meter readings. (If you are moving out of your property, then you should take your final metre readings too). You should also contact your Local Authority and make arrangements to set up your Council Tax account.

There are also other people that need to be informed of your new address and the date you intend to move:

♦ your doctor ♦ your dentist ♦ your bank ♦ companies with which you have any lending ♦ your employer / DWP ♦ schools ♦ electoral registration at the Council (so you don’t lose the right to vote at

elections) ♦ DVLA – for driving licence and vehicle registration documents ♦ TV licencing ♦ Royal Mail – to arrange re directing of post ♦ Utility providers – gas, electric, water ♦ Your family and friends

For help and advice, please contact a member of the Money Wise Team on:

Telephone: (01325) 406962/406939

Email: money.wise@darlington.gov.uk

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