Can I Afford to Live Independently?
This is a long term option and is only possible if you have a regular income and are in permanent employment - get advice from your local Housing Aid Centre/ Access point , CAB or independent financial adviser.
What is a Mortgage? A mortgage is a sum of money that can be borrowed from a bank or building society so that you can buy your own home. The minimum age at which you can get a mortgage in your name is 18. You must have a regular income, which must be at a certain level according to how much you borrow. You will probably need a deposit.
Shared Ownership There are also some shared ownership schemes where you can part rent and part buy, if you cannot afford a full mortgage. You should contact your local Housing Aid Centre/ Access point for further information.
Do a quick calculation with a personal budget plan. Check your income and expenditure if you have to claim Housing Benefit/Local Housing Allowance, you need to complete the forms and return them to the council as soon as you can other wise you become liable for rent. You will also need to provide proof of identity and income.
Tips
Always get receipts for everything you hand into the Housing Benefits office. It is important to remember that as well as your rent (or mortgage) there are many other costs you need to consider e.g. Council Tax, water rates, house insurance, gas/electric bills. Remember, if you are living alone you have to pay for these on your own.
Gas and Electricity
When you move into your accommodation, always have any meters read. as you could be charged for the previous tenants usage. Don't use any gas or electrical appliances if you think there is something wrong with them as this could be dangerous. Have them checked by a qualified engineer.
You can arrange to pay bills quarterly, monthly, Direct Debit or buy stamps. You can also have a token meter put in so you pay as you use the gas or electricity. However, this is sometimes more expensive so it is important to get proper advice before switching to a different system. Below are APPROXIMATE prices of gas and electric bills based on a one bedroomed accommodation. These estimations cannot take into any account price increases after publication of the Youth Fax
Gas
Accommodation to include central heating, fire and cooker would cost approximately £30 or more per month.
Electric
The amount of electricity you use is measured in UNITS, which have different costs depending on the time of day/night you’re using them.
1 Unit of electric could cost some where between 4 and 12 pence. You can calculate the cost of different appliances on this web site www.moneymatterstome.co.uk
See also other web sites that will compare prices with other companies.
Tips
It is useful to think of practical ways of trying to save on fuel without endangering your health.
Here Are Some Ideas:
• If you have Economy 7 and have a washing machine, use it at night, also heat your water at night. This will save you money, as this is the cheapest time to use it.
• Make sure windows are closed and block draughts around doors to increase warmth.
• Put polythene across windows and fasten with sellotape to create double glazing.
• Have a thermostat fitted if you have an immersion heater. Lag your tank well to keep the heat in.
• Make sure your heaters are not covered as this blocks the heat. • Draw your curtains early on cold nights to keep heat in the room.
• Beware - some gas heaters need extra ventilation to avoid the build up of poisonous fumes.
• Any gas appliance should be checked by a Corgi registered person every 12 months. Your landlord/landlady should show you proof that he/she has had this done. There are recent rules about gas safety which are designed to help you. Ask at a Housing Aid Centre/ Access point or CAB for further advice.
• To make your home warmer ring your energy efficiency advice helpline on: FREEPHONE 0800 074 0745. (Ask about free energy saving bulbs).
Water Rates
These will sometimes be included in your rent, if not you can pay the money in weekly or monthly instalments.
You can find out how much you will have to pay, by ringing Yorkshire Water on:
0845 124 2424
& give them the address of the property.
Council Tax
Only people who are 18 and over are liable for Council Tax. Sometimes, this is included in your rent but if not, you are legally bound to pay it. See your local council website or Housing Access Point. However there are exceptions to this, for example if you live in a house in multiple occupation (i.e. several separate households in the same building). So it is worth checking.
She/he may charge you more in rent to cover this cost. If you are under 18, the landlord/lady is responsible for paying Council Tax on the property. But he/she may increase your rent to pay for it. If you are the only person living there, you can apply for a single person reduction which is 25%. How this is calculated is changing. See www.direct.gov.uk for any changes or your local housing access point.
Council Tax Benefit
This is available for those on low wages or state benefits. If you get Income support, or Job Seekers Allowance (income based) you qualify for 100% benefit on Council Tax. One form is available to apply for both Council Tax Benefit and Housing Benefit these can be filled in on line or picked up from access points. How this is calculated is changing see www.direct.gov.uk for any changes or your local housing access point.
Telephone
Having a landline telephone or mobile can be very expensive especially if you have to pay for a new line connection. There may be schemes where you can receive incoming calls only.
Television
The price of a TV licence, this includes any device that you can use to view and record a programme as it is being broadcast, i.e. computer, mobile phone etc. The cost of a licence from April 2010:
Colour: £145.50
Black and White: £49.00
You may pay monthly or quarterly through a bank account, online or a paypoint outlet. If you are in receipt of benefits you can take advantage of the Easy Entry Scheme available at any Pay Point outlet. A colour TV licence can be paid for through weekly payments for as little as £5.60pr week. The fine for non payment is £1000. www.tvlicensing.co.uk
Insurance
It is important to budget for insurance for house contents, eg. TV and video. These are items which are often stolen and are costly to replace.
Am I Entitled to Any Help Towards the Rent?
Housing Benefit or LHA is designed to help people on low incomes pay their rent. It can either be paid directly to the landlord/lady or to the individual. The amount depends on your personal circumstances and the accommodation you are in. Some landlords/ ladies will not accept people who are paying with Housing Benefit or LHA. If you are 16/17 it is important to get advice before moving away from home as, depending on your circumstances, you may not be eligible for any help.
Housing Benefit or LHA is calculated by looking at how much you can afford to pay towards your rent. The amount of Housing Benefit you will receive is your rent minus the amount that you can afford to pay (if anything).
Please note: that this does not apply to some people in these categories: living in a housing association or council home; disabled young people; living with someone who is not a dependent; accommodated by the local authority.
TIP: Before you agree to move in, ask for a “pre tenancy determination” from your Housing Access Point then ask an Advice Centre to work out how much of the rent will be met by Housing Benefit.
