Service charge consultation

The DWP is running a consultation on UC guidance on service charges.  You can find it at http://www.dwp.gov.uk/docs/service-charges-guidance.pdf.

Comments can be sent to .(JavaScript must be enabled to view this email address)
by the end of January.

Can any one make sense of the proposed means of resolving disputes about the amount of an eligible service charge?  Is this a referral to a rent officer?  If so under what powers?  My reading is that the DWP only has power to refer the whole rent to a rent officer.

I imagine this is why they are seeking further comments through the consultation.  It is good though to have guidance on service charges via UC., as we all had real concerns over the very restricted eligible charges in the first draft and now expanded to cover the the wider range of services provided by social landlords. As far as who will become involved in disputes, as HB will be retaining claims for exempt provision which is linked to the more complicated (usually higher) charges, my guess is there is where any disputes will be routed to.  I do think that there is more clarity in the guidance issued on UC service charges than is currently offered under HB regs.  The main issue will be the reasonableness of these charges and of course the ongoing issues around exempt accommodation which will become more important as it will allow protection of remaining with HB and for payments to be made to landlord.  But it is another sign that the whole reform is becoming extremely complicated and the fact that we will deal with two systems for several years just makes it a nightmare.  Challenging times ahead for advisers.

I have been advised of a restriction on the definition of supported exempt accommodation, in that only those services where the Registered Provider of the accommodation is also the support provider are exempt. Where the local authority contracts with a a managing agent to provide support in partnership with a Registered Provider, the accommodation is not exempt. I’m told this will take much of the supported housing locally out of the exempt category. Sitra have produced a flow chart explaining this - its on their website - http://www.sitra.org/?id=1779

Any thoughts?