Housing Options For Single Parents - Support With Financial Difficulties By Elizabeth Taylor
The challenge of affording suitable housing as a single parent is endless. All too often we are trapped in a cycle of trying to earn enough to get a mortgage and trying not to earn too much that you will lose the Universal Credit support towards your rent; never mind the waiting lists that we face to move into social housing. Ok, now I have finished ranting, ill move to the positives, there are in fact many initiatives in Wales that we can access as single parents, it is simply knowing about them.
Well, worry no more, we have collated as much information as we can about the various housing options and support with financial difficulties, including those being offered during the current COVID-19 pandemic.
It is important to note that, housing is actually a devolved policy area in Wales, which means Wales have the power to make all decisions. So any changes in law that you see, such as ban on rental fees, it is important to check that this is Welsh legislation. Universal Credit, or Housing Benefit isn’t devolved and the powers to make those decisions, still remains with UK Parliament. This does make things a little complicated at times, but everything we have linked in this blog is Wales specific.
Self – isolation Support Scheme
The self-isolation support scheme is for those on low income, who cannot work from home and must self-isolate. It is also for parents and carers on low incomes with children who are self-isolating.
Payments will be taxed, but they are exempt from National Insurance contributions. It should not affect any benefits you get.
Find out more here: https://gov.wales/self-isolation-support-scheme
Discretionary Assistance Fund - DAF
DAF provides two types of payments that you don’t have to pay back. These include an Emergency Assistance Fund (EAP) which is a grant to help pay for essential costs, such as food, gas, electricity, clothing or emergency travel. And a IAP which is a grant to help you or someone you care for live independently in their home or a property that you or they are moving into.
Find out more here:
https://gov.wales/discretionary-assistance-fund-daf
Council Tax Reduction Scheme
Council Tax is charged on all homes. The bill takes into account an individual or a household’s circumstances.
You usually have to pay Council Tax if you are 18 or over and own or rent a home. A Council Tax bill is normally based on 2 adults living in a property, however in some circumstances you could have your bill reduced. You may be eligible to receive a reduction or discount for more than one reason.
Find out more here: https://gov.wales/council-tax-discounts-and-reduction
Mortgage Rescue Schemes
These schemes are set up to work in two different ways
Some households will get a shared equity loan.
Others will be offered help from a ‘mortgage to rent’ scheme, whereby a local housing association buys their property and rents it back to them.
Shared equity loan
To be eligible for a shared equity loan, you will need to have some equity in your property. If you qualify, you will be given an equity loan from a housing association which should enable you to keep up with your mortgage payments. The loan is repayable to the housing association but is interest free.
Mortgage to rent
If you cannot afford to continue owning a share of the property, the housing association may decide to buy the property at close to market value, and rent it back to you.
You would no longer own your own home and in most cases, you would be given an assured or an assured short-hold tenancy.
Find out more here: https://sheltercymru.org.uk/get-advice/mortgages/mortgage-rescue-schemes/
Check out our Money Resources for further support on financial difficulties.