The Scottish Government

a) the approved expense minus the applicant's contribution; or
b) a percentage of the approved expense as specified in Regulations for particular cases (minimum percentage grant).

8.2 This gives three elements to be determined:

a) the approved expense, ie, the approved cost of eligible works
b) the applicant's contribution
c)any minimum percentage grant which applies.

8.3 Two separate methods are prescribed for assessment of the applicant's contribution, one based on the applicant's personal income, for owner-occupiers, tenants and disabled occupants, and another based on the increase in property value resulting from the works, for landlords and businesses.

8.4 In the personal income assessment, income is to be determined over the year immediately preceding the date of application. For other applicants, the value of the property is to be determined at the date of application. For various reasons, there may sometimes be a delay between the initial enquiry and the point at which funds can be made available for the work. Authorities will need to consider their procedures to ensure that the registered date of application, and date of approval, are both as close as possible to the time when works are begun and costs incurred.

" "approved expense" means, in relation to works referred to in an application, the amount of the expense of executing those works (as estimated in the application) approved by the local authority as being attributable to each house proposed to be provided or improved"

In determining the approved expense, the local authority will wish to be satisfied that the expense estimated in the application is reasonable for the works specified, and how much of the works specified are eligible for grant. The Act makes clear that the approved expense is that which relates to executing the works, and any additional costs are therefore likely to be excluded. Having taken these points into account, the local authority may decide to fix the approved expense at an amount lower than the estimate given in the application, and lower than the statutory maximum expense. In such cases, they must explain to the applicant in writing the grounds for their decision.

9.2 The definition does not allow for any other funding available to the applicant for the works, such as insurance payments, to be taken into account in fixing the approved expense. However, where insurance or compensation payments are available to cover specific works, local authorities may refuse applications for discretionary grant which include those works, and request instead an application relating only to costs not otherwise covered. Where the costs cannot be separated, relevant insurance and compensation payments are taken into account in the assessment of applicant's contribution for owner-occupiers etc.

a) The maximum level of 20,000 may be exceeded with the approval of Scottish Ministers, if the local authority are satisfied that there are good reasons for doing so. Procedures for requesting Scottish Ministers' approval are set out in chapter 18.

b) Where any improvement or repairs grant, or any assistance under the Crofters' Building Grants and Loans Scheme, has been paid or approved for payment in respect of the same house within the past 10 years, the maximum approved expense for the current application is 20,000 minus the amount of the previous grant, or the total of all previous grants. This restriction also prevents a combination of grants being awarded at one time totalling more than 20,000.

This provision does not apply to previous grants that were paid as minimum percentage grants, nor where either the current or previous grant relates only to standard amenities or to adaptations for a disabled occupant.

10.1 In some circumstances, a minimum percentage grant applies, so that a set percentage of approved expense is paid for all approved applications, even where the applicant would receive nothing, or very little, through the test of resources. Minimum percentage grants are intended to encourage specified types of work and facilitate co-operation from owners who might otherwise be reluctant to agree to works, due to the low level of assistance available.

10.2 The existence of minimum percentage grants has no effect on local authorities' discretion to approve or refuse an application for grant, nor on the categories of mandatory grant. It is part of the calculation of the amount of grant to be paid, if the application is approved.

10.3 There are two statutory provisions for minimum percentage grants. S.244(7) of the Act provides that a minimum percentage grant shall be made for the provision of standard amenities. S.242(1A) enables Scottish Ministers to specify other cases in regulations. This has been done through the Housing Grants (Minimum Percentage Grant)(Scotland) Regulations 2003, reproduced at Annex B2.

10.4 The circumstances in which minimum percentage grants apply are:

a) installation of standard amenities, including additional standard amenities required for the use of a disabled occupant;
b) bringing a house from below the Tolerable Standard up to the Tolerable Standard;
c) adaptations to meet the needs of a disabled occupant;
d) works required following service of a statutory repairs notice, improvement order, or Housing Action Area resolution;
e) works required following service of a s.162 notice requiring provision of a fire escape for a house in multiple occupation
f) common works to a building which includes more than one house (or a house and other premises);
g) works to replace lead water pipes or to reduce exposure to radon gas.

10.5 These categories cover all cases where grant is mandatory (a, d and e) and those which, under the previous grants system, enabled grants to be given above 50% of the approved expense (b, c, g).

10.6 (f) is included to facilitate agreement between owners. The definition of common works requires that:

• the building comprises two or more houses, or a house or houses and other separate premises;
• the works will benefit two or more such houses or premises; and
• the costs will be shared among the owners or occupiers of those houses or premises.

10.7 To ensure this provision applies in all cases, and to avoid any complications as the reform of property law in Scotland takes effect, there is no reference to title conditions or liability for maintenance. Minimum percentage grant may be awarded even where the works are technically the responsibility of only one owner, if other owners have agreed that the works will benefit their property and they are willing to share the costs. An example would be where the roof of a tenement belongs only to the top flat, but leaks affect the stair and could damage the fabric of the whole building.

10.8 With one exception, all minimum percentage grants are now set at 50% of the approved expense. This means that, where the assessment produces a grant level of 49% or less, the amount to be paid is 50%. Where the assessment produces a grant level of 51% or more, that is the amount to be paid.

10.9 The exception is (e) above, where a s.162 notice has been served requiring provision of a fire escape for a house in multiple occupation. In this case, the minimum percentage is set at 20%.

10.10 The local authority should check whether a minimum percentage grant applies before calculating the applicant's contribution. If a minimum percentage grant applies, the applicant may opt simply to take the minimum percentage and avoid giving details of his income, or having his property valued. However, where it seems likely that the applicant would qualify for more than 50% grant, they should be encouraged to provide information for the assessment . Where the amount of grant calculated through the assessment is higher than the amount offered under the minimum percentage grant, the applicant will receive the higher amount.

10.11 Where an application includes some works eligible for minimum percentage grant and others which are not, it should be treated as two applications, one for minimum percentage grant and one for ordinary grant. However, the processing involved will be minimised by calculating the percentage of applicant's contribution before splitting the approved expense. If the applicant is entitled to more than the minimum percentage grant, both applications will be payable at that level. Only if the assessment produces a grant level below 50% is it necessary to calculate the two amounts separately.

11.1 The Housing Grants (Assessment of Contributions)(Scotland) Regulations 2003 set out two methods of assessment, and the applications to which each assessment applies.

11.2 The assessment described in Part II of the regulations applies to the following categories of applicant:

a) the owner, where they or a member of their family occupy the house as their main residence;
b) an agricultural or crofting tenant, who is treated as the owner of the property for the purpose of grant, under s.256 of the Act;
c) a tenant eligible for grant ( see paragraph 4.1);
d) a liferenter who is responsible for the relevant works;
e) a disabled occupant, or the parent of a disabled child, where the application relates to adaptations to meet their needs;

11.3 These categories, together with the "non-occupier" categories described in paragraph 11.8, reinforce the principle that in most cases the owner is responsible for maintaining the property, and should make the application for grant. Tenants and liferenters may apply where they are responsible for the relevant works. Tenants may also receive grant where the works are necessary for their health and safety, and disabled occupants to adapt the house to meet their needs.

11.6 Where the application relates to adaptations to meet the needs of a disabled person who is under 16 the application should be made by the person with parental responsibility for the disabled person: usually the person with whom the disabled person normally lives. The income of this person and their partner, if any, will be taken into account in the assessment of applicant's contribution. Once a disabled young person reaches the age of 16, they should make the application themselves, even if the house to which the application relates is the family home, belonging to their parents. As before, the owner's consent to the application is required.

11.7 If it is considered that a disabled person aged 16 or over for whose benefit adaptations are required does not have the capacity to make the application, an attorney or guardian may be able to make the application on their behalf, and the income to be taken into account will be that of the disabled person. In such cases, grants officers may wish to seek the advice of Social Work colleagues, on how decisions should be made about an individual's capacity to give consent and the provisions of the Adults With Incapacity (Scotland) Act 2000. Guidance issued by the Scottish Executive Community Care Division on Direct Payments may be helpful in this respect. It also provides some sensitive advice on dealing with young disabled people and their parents.

11.8 The assessment described in Part III of the regulations applies to owners of property which neither they nor a member of their family occupies as a main residence. These will mainly be landlords (who own property for rent which is currently tenanted or between tenants) and developers (who own property to be converted to housing, or empty housing to be renovated).

11.9 It also applies to any person on whom a repair notice or Housing Action Area notification is served in respect of premises other than houses. Premises other than houses are eligible for grant if they are in a building which also includes a house or houses, and where a notice has been served for common works to which the business is required to contribute. The notice may be served on the owner or occupier of the premises. This most often affects shops or offices with flats above.

11.10 Part IV of the regulations provides that, for anyone outwith these categories, the applicant's contribution is equal to the approved expense, meaning that they will receive no grant unless a minimum percentage grant applies.

12.1 The assessment of applicant's contributions for applicants in the "occupier" category is based on the personal income of the applicant and others who are deemed to share responsibility for the house.

a) the applicant
b) the applicant's spouse
c) except where the grant relates to adaptations for a disabled person, any joint owner or joint tenant with the applicant, and the spouse of any joint owner or joint tenant.

12.3 The Act, as amended by the 2001 Act, provides that "spouse" includes unmarried and same-sex partners who live together as if they were married. Elsewhere in this guidance, and in other information on the grants system, "partner" is used in preference to "spouse". Where an application is made by the person with parental responsibility for a disabled child, the income assessed is that of the applicant and their current partner, who may or may not be the disabled child's other parent.

12.4 The partners of the applicant and of all joint owners or joint tenants are included in the assessment, whether or not they are joint owners or joint tenants themselves. There are various reasons why a house may be purchased in one name or both, but if two people live together as partners, it may be assumed that they have a shared interest in the condition of their property. Any other arrangement would see couples whose house is in only one name receive significantly more grant than those who have bought jointly.

12.5 Whether two people normally live together as partners should be assessed at the date of application. If one partner is temporarily away, on business, studying, in hospital or for whatever reason, they are still considered partners if they intend to live together again in future.

12.6 The applicable income of each relevant person is assessed as follows:

(a) Determine whether they are "passported" by receipt of specified benefits
(b) Add up all relevant income for the assessment period
(c) Subtract all relevant deductions and allowances.

12.7 The total applicable income from all relevant persons is then compared to the table set out in the Schedule to the Regulations, and the approved expense is multiplied by the appropriate percentage to find the applicant's contribution for that application. An extended table is given at the end of this section, showing the equivalent grant percentage (the applicant's contribution subtracted from 100). Worked examples of the calculation are provided in Annex E.

12.8 The first element of the assessment is to check whether the applicant or their partner is in receipt of Income Support (IS), Income-based Jobseekers' Allowance (I-JSA), or the Guarantee element of Pension Credit (GPC). (GPC is equivalent to Income Support for those over 60, and replaces the Minimum Income Guarantee.) The applicant does not need to show that they have been in receipt of the relevant benefit for any length of time, just that they have a valid claim on the date of the application.

12.9 If the applicant or their partner is in receipt of IS, I-JSA or GPC on the date of the application, they are assessed as having no applicable income. No further information or calculation is required for this couple. In most cases, this will result in a 100% grant. However, if there are additional relevant persons (ie joint owners or joint tenants), their applicable income must also be assessed. The final grant percentage is based on the income of all joint owners and their partners, and will only result in 100% if no relevant persons have any applicable income.

12.10 The income to be calculated is the applicant's actual income for the year (52 weeks) preceding the date of application, taking into account all changes in circumstances over the year. Investment in a property is a long-term commitment, and it is appropriate to take a measure of income over a period of time.

• the income from another full year within the previous 3 years; or
• figures for a period shorter than a year, multiplying up to produce an annual equivalent, if records are not available for the full year. This method should not be used routinely to calculate an annual equivalent of the applicant's income at the date of application, if their circumstances have changed over the year. It should only be used if it is not possible to find out what their actual income was for the whole year.

The local authority may decide to accept partial records for verification purposes, if they are satisfied that the applicant's income from that source has not varied from month to month.

12.12 The assessment takes into account only income which is specifically mentioned in the regulations. For the avoidance of doubt, Schedule 2 lists items specifically excluded, but these are only a small number of examples. The main forms of income excluded from the calculation are those from the following sources:

a) welfare benefits (except Housing Benefit)
b) tax credits
c) charitable payments
d) Direct Payments to purchase community care or children's services

12.13 Eligibility for allowances is based on receipt of certain benefits. It may, therefore, be necessary to know whether the person receives a benefit, but it is not necessary to know how much they get.

12.14 Total earnings from all forms of employment and self-employment are included in the assessment, net of tax and NI contributions. The Regulations specify in detail what payments are included in earnings, for clarity in more complex cases. For example, expenses are excluded where they are necessarily and exclusively incurred in the performance of the duties of the employment, but reimbursement of the applicant's expenses for their normal home-to-work travel is included as income, as are childcare costs paid by the employer. If there is any doubt whether a payment should be included in the assessed income, reference should be made to the Regulations. The definition of earnings is the same as for the calculation of Housing Benefit.

12.15 For a self-employed earner, the assessed income from earnings is the net profit of the business, or his share of the net profit, after tax and NI contributions.

12.16 Half of any contributions to occupational or personal pensions, including stakeholder pensions, is deducted from the total earnings. This provision aims to strike a balance between encouraging people to save for their retirement, and highlighting the importance of investing in the maintenance of their property. The full amount should be entered on the application form and verified by the local authority before calculating the applicable income. (The full amount should be entered in the grant calculator software; the system will calculate half and subtract it from income)

Savings and investments

12.17 The capital value of savings and investments is not taken into account, but any income from them is included in the assessment. This includes all interest, whether or not it is reinvested, from the date it is credited to the applicant's account. Any payments from investments derived from any source are also included, apart from charitable payments. Payments from certain trusts are specifically excluded. These are:

• the Macfarlane Trusts
• the Fund (for people who contracted HIV through transfusions)
• the Independent Living Funds
• the Eileen Trust
• the Skipton Fund
• the variant Creutzfeld-Jakob trusts.

These last three were added by the 2004 Amendment Regulations.

Income from pensions

12.18 Income from occupational pensions, personal pensions including stakeholder pensions, and annuities, are all included in the assessment. Second or additional state pension (formerly SERPS) is also included, since the amount is related to the person's level of contributions. Basic state retirement pension is considered equivalent to a benefit, and is therefore disregarded, as is pension credit. All war pensions, war widows' pensions and associated mobility supplements are disregarded.

Capital payments

12.19 Capital payments made within the three years preceding the date of application are assessed as income within the assessment period, to the extent that they are made to enable the works to which the application relates to be carried out. This is relevant principally to compensation or insurance payments relating to disability or damage to buildings.

12.20 Where the application relates to adaptations for a disabled occupant, any compensation award or insurance payment relating to their disablement may be relevant. For example, where a person has suffered an injury which results in them needing to use a wheelchair, and has been paid compensation which reflects the expected additional costs they will face as a result, that compensation payment will be included in the assessment for a grant to widen doors, provide ramps etc, where these have been accepted as eligible works ( see paragraph 9.2). It would be excluded where grant is approved for that person for works to prevent dampness or replace unsafe electrical wiring. Payments to compensate for pain and distress, and criminal injury payments, should not be included in the assessment.

12.21 Similar provision applies to payments from a buildings insurance policy, where they have been made in consequence of some damage to the building which the planned works are intended to repair.

12.22 Any capital payments which are repayable by the relevant person are excluded from the calculation. This avoids penalising any applicant who may have already arranged a loan to cover their expected contribution to the cost of works.

Other income

12.23 Income from any rented property owned by the applicant, including rooms rented out in his own home, is included in the assessment. Rental income is defined as income received less any allowances which are deductible for income tax purposes. Tax deductible expenses include mortgage payments, maintenance and management fees. The applicant should have documentation from the Inland Revenue showing the relevant net income.

12.24 Maintenance payments to support the applicant or any child for whom the applicant is responsible are included. Payments from a local authority for fostering or adoption should not be counted.

12.25 If the applicant is a tenant, any Housing Benefit received over the assessment period is included in the assessment. This is set off against rent payments (see 12.27).

12.26 The Regulations also include the following rules, to clarify difficult cases and prevent fraud:

a) A person is treated as possessing income of which he has deprived himself for the purpose of increasing the amount of grant. This would apply if the applicant has arranged to receive less income over the assessment period than he would normally, perhaps from a business partnership or from an investment scheme.

b) A person is treated as possessing income which he could reasonably have expected to receive within the assessment period, even if he has not received it. This enables the assessment to take into account regular payments (such as rent or maintenance) which would fall within the assessment period but are overdue, or payments which will be backdated.

c) If any income is paid jointly to an applicant and one or more other persons, it will be treated as if each of them is entitled to an equal share.

d) Any payment to a third party in respect of an applicant shall be treated as possessed by the applicant to the extent that it is used for food, clothing, fuel or rent for the applicant or his family

e) Any payment to an applicant in respect of a third party shall be treated as possessed by the applicant to the extent that it is kept or used by him or on behalf of his family.
d) and e) ensure that any income available for the applicant's everyday use is taken into account, even if it is in another person's name.

These rules apply only to the types of income which are included in the assessment generally. Local authorities are not expected to investigate these issues in relation to every application, but the rules can be used where an applicant is suspected of deliberately concealing income in order to obtain a higher level of grant than he is entitled to.

12.27 Mortgage and rent payments are deducted from the total assessed income. The regulations define both of these as "rental payments", covering any payment which the relevant person is contractually obliged to make in order to allow the relevant person or a member of their family to occupy the house. Only the amount which the relevant person is contractually required to pay is eligible for deduction. If they have made additional payments, or even paid off a mortgage early, the extra amount cannot be deducted. The expenses of any property which the relevant person owns for let will be included in the calculation of rental income - see paragraph 12.23.

12.28 Relevant payments include repayments on any loan secured on the property for the purpose of:

a) acquiring the property;
b) repairing or improving the property; or
c) paying off any loan which was originally obtained for purposes a) or b), ie, remortgaging.

Repayments on any secured loans taken out for other purposes are not eligible to be deducted.

12.29 Council tax and water charges are not deducted, nor are any additional payments for services, bills or meals. Service charges which must be paid as a condition of occupation are included in the allowable deduction. Premiums for insurance policies which are required as a condition of a relevant secured loan are included, but those which are only recommended are not.

12.31 Changes of circumstance may occur when a child is born, adopted or comes to live with the applicant; when a child reaches the age of 16, leaves full-time education or goes to live elsewhere; or when a person becomes eligible, or stops being eligible, for benefits relating to disability. The number of eligible weeks should be calculated from the date of the change of circumstances up to the date of application, or from one year before the date of application to the date of the change. A complete week is any period of 7 days, starting on any day of the week.

12.34 A person is responsible for a child who normally lives with him. If there is any question as to which person a child normally lives with, the child shall be treated as normally living with:

a) the person who receives child benefit for him; or
b) the person who has made a claim for child benefit for him (if only one claim has been made); or
c) the person who has primary responsibility for him.

12.35 A person is also treated as responsible for any student in full-time further or higher education if his income could be assessed for a contribution to the student's support, whether or not an application has been made for a student grant or student loan. Both parents of a student can normally have their income assessed, although only one allowance can be made for each child involved in the application. Full details of the arrangements for student support are available from the Student Awards Agency for Scotland.

12.36 An additional allowance of 42 is made for each child who receives Disability Living Allowance or who is registered blind.

12.37 An applicant is eligible for an allowance for disability if he or his partner receives a relevant benefit or is registered blind. Correspondence from the Benefits Agency, Inland Revenue or Veterans Agency should be available to show the relevant dates if eligibility started or ended during the year of assessment, and evidence of payments should show whether the claim is still current. It is not necessary to investigate the amount of benefit paid.

12.38 The qualifying benefits are:

a) Disability Living Allowance
b)the disability element of Working Tax Credit
c)Disabled Person's Tax Credit ¹
d)Severe Disablement Allowance ²
e)Incapacity Benefit
f)War Pensioner's Mobility Supplement
g)Attendance Allowance
h)another equivalent benefit paid to meet attendance, care or mobility needs due to disability or illness.

12.39 Applicants are also eligible for an allowance if they:

a) are registered blind; or
b) were previously in receipt of one of the benefits in 12.38, but have ceased to receive it because they have either reached the maximum age limit for the benefit or are being treated in hospital as an in-patient; or

12.40 The amount of the allowance for disability is 35 per week for a single applicant, and 50 per week for an applicant with a partner. One allowance at this higher rate is deducted per couple, regardless of whether it is the applicant, his partner or both who meet the qualifying criteria.

12.42 The table is informed by average household incomes across Scotland, so that approximately 10% of households (who do not qualify for passporting), would be eligible for grant between 100% and 90%, 10% of households between 90% and 80%, and so on. Those who have no income other than benefits, after mortgage/rent costs and allowances have been deducted, qualify for 100% grant. The figure of 10 net income is a mathematical convenience to ensure that the income ranges are always in whole numbers of pounds.

Net income

Applicant's contribution

Grant percentage

From

To

0

9.99

0

100

10

242.99

1

99

243

475.99

2

98

476

708.99

3

97

709

941.99

4

96

942

1,174.99

5

95

1,175

1,407.99

6

94

1,408

1,640.99

7

93

1,641

1,873.99

8

92

1,874

2,106.99

9

91

2,107

2,339.99

10

90

2,340

2,572.99

11

89

2,573

2,805.99

12

88

2,806

3,038.99

13

87

3,039

3,271.99

14

86

3,272

3,504.99

15

85

3,505

3,737.99

16

84

3,738

3,970.99

17

83

3,971

4,203.99

18

82

4,204

4,436.99

19

81

4,437

4,669.99

20

80

4,670

4,902.99

21

79

4,903

5,135.99

22

78

5,136

5,368.99

23

77

5,369

5,601.99

24

76

5,602

5,834.99

25

75

5,835

6,067.99

26

74

6,068

6,300.99

27

73

6,301

6,533.99

28

72

6,534

6,766.99

29

71

6,767

6,999.99

30

70

7,000

7,299.99

31

69

7,300

7,599.99

32

68

7,600

7,899.99

33

67

7,900

8,199.99

34

66

8,200

8,499.99

35

65

8,500

8,799.99

36

64

8,800

9,099.99

37

63

9,100

9,399.99

38

62

9,400

9,699.99

39

61

9,700

9,999.99

40

60

10,000

10,299.99

41

59

10,300

10,599.99

42

58

10,600

10,899.99

43

57

10,900

11,199.99

44

56

11,200

11,499.99

45

55

11,500

11,799.99

46

54

11,800

12,099.99

47

53

12,100

12,399.99

48

52

12,400

12,699.99

49

51

12,700

12,999.99

50

50

13,000

13,299.99

51

49

13,300

13,599.99

52

48

14,200

14,499.99

55

45

14,500

14,799.99

56

44

14,800

15,099.99

57

43

15,100

15,399.99

58

42

15,400

15,699.99

59

41

15,700

15,999.99

60

40

16,000

16,299.99

61

39

16,300

16,599.99

62

38

16,600

16,899.99

63

37

16,900

17,199.99

64

36

17,200

17,499.99

65

35

17,500

17,799.99

66

34

17,800

18,099.99

67

33

18,100

18,399.99

68

32

18,400

18,699.99

69

31

18,700

18,999.99

70

30

19,000

19,499.99

71

29

19,500

19,999.99

72

28

20,000

20,499.99

73

27

20,500

20,999.99

74

26

21,000

21,499.99

75

25

21,500

21,999.99

76

24

22,000

22,499.99

77

23

22,500

22,999.99

78

22

23,000

23,499.99

79

21

23,500

23,999.99

80

20

24,000

24,799.99

81

19

24,800

25,599.99

82

18

25,600

26,399.99

83

17

26,400

27,199.99

84

16

27,200

27,999.99

85

15

28,000

28,799.99

86

14

28,800

29,599.99

87

13

29,600

30,399.99

88

12

30,400

31,199.99

89

11

31,200

31,999.99

90

10

32,000

upwards

100

0