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Who pays service charges? PC or HB?
Have been asked what seems a simple question but I cant seem to find an obvious answer.
Service charges can be paid with a PC award under para.13 Sch.II SPC Regs 2002
13.—(1) Subject to the deduction specified in sub-paragraph (2) and the reductions applicable in sub-paragraph (5), there shall be met under this paragraph the amounts, calculated on a weekly basis, in respect of the following housing costs—
(b)service charges
Service changes can be paid with a HB award under reg.12(1)(e) of the pension-age HB Regs:
Rent
12.—(1) Subject to the following provisions of this regulation, the payments in respect of which housing benefit is payable in the form of a rent rebate or allowance are the following periodical payments which a person is liable to make in respect of the dwelling which he occupies as his home—
(e)payments of, or by way of, service charges payment of which is a condition on which the right to occupy the dwelling depends;
Obviously, you shouldn’t be able to claim service charges with both a PC award and a HB award but on what basis is this decided?
We’ve got case where Pension Service refused to include service charges initially so client approached LA and these were added into HB award but now Pension Service have relented and say the service charges should be included in the PC award after all and are recalculating entitlement.
We’re a little puzzled about what’s going on and how this can happen. Any thoughts anyone?
[ Edited: 17 Nov 2022 at 02:32 pm by Paul_Treloar_AgeUK ]Is that covered by Para 5 of Sch II, perhaps?
Is that covered by Para 5 of Sch II, perhaps?
Thanks Timothy, hadn’t spotted that provision.
If anything, that makes the Pension Service decision slightly more puzzling as that would appear to indicate that if HB were happy to cover the amount of service charges, then it shouldn’t be included in the PC award.
Is it some kind of shared ownership set-up? Housing Benefit covering the service charges and Pension Credit covering ground rent?
Is it some kind of shared ownership set-up? Housing Benefit covering the service charges and Pension Credit covering ground rent?
Doesn’t appear so Mick.
That’s odd then. In my simple world I always thought that HB covered service charges where there is a liability to pay rent. If there is no liability to pay rent then PC steps in.
Long lease?
Long lease?
That was what I though initially but that is only about ground rent, not service charges isn’t it?
That’s odd then. In my simple world I always thought that HB covered service charges where there is a liability to pay rent. If there is no liability to pay rent then PC steps in.
So did I Mick, hence why this seems odd.
What specifically is the housing situation of this claimant?
What specifically is the housing situation of this claimant?
Straight up renting as far as I know with HB award in place.
The policy intention certainly is that SPC covers ground rent and service charges under a conventional long lease, while HB covers rent and service charges on any other rented accommodation including a shared ownership lease.
The trouble is that the SPC Regs only make that clear in respect of ground rent in para 13(1)(a). 13(1)(b) service charges ought to have the same closing words.
But as Tim says, the risk of duplicate provision arising under 13(1)(b) is eliminated by para 5 which disallows anything eligible for HB ... except where subpara (1A) applies. I found this baffling and circular: subpara 5(1A) says SPC won’t cover HB expenditure unless it does cover it - which brings us back to para 13(1)(b) and duplication of service charges. So I thought I would have a look at the explanatory memorandum for the amendment that inserted subpara 5(1A) (SI 2002/3019). There isn’t one. I cannot think what the 5(1A) exception is aiming for
So everyone is confused then? Glad it’s not just me. Thanks folks.
Just heard back from adviser that this is shared ownership property which adds to confusion as this thread I have noticed is clear that people think it should be HB covering service charges as a result and not PC.
https://www.rightsnet.org.uk/forums/viewthread/14415/
Adviser is going to let the thing play out for now and then go from there - given the to and fro so far for the client, I can see why.