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GUIDANCE FOR LOCAL AUTHORITIES ON IMPROVEMENT AND REPAIRS GRANTS
Annex E: Worked Examples
E1 Approved Expense
E2 Assessment of applicant's contribution - occupiers
E3 Assessment of applicant's contribution - non-occupiers
AMOUNT OF GRANT- WORKED EXAMPLES
Please note that the figures used for illustration make no claim to be realistic amounts for the items quoted.
E1 Approved expense
A Basic.
| Estimate: | |
| a) Installation of boiler and radiators in all rooms | 4000 |
| b) Installation of flame-effect gas fire to living room | 800 |
| c) Strip and restore hearth and mantelpiece | 600 |
| |
(a) is eligible work.
(b) may be partially eligible, if radiators do not achieve adequate level of heating in living room, but a cheaper solution could be used. Council agrees to pay 200.
(c) is decorative and not eligible. Approved expense 4,200 | |
B Part of costs eligible for minimum percentage
| Estimate | |
| a) Replace lead piping to tank and from tank to kitchen tap, replace lead tank with plastic tank | 5000 |
| b) Remedy defects to foul drainage | 3800 |
| |
Applicant's income qualifies for 35% grant. | |
(a) is eligible for minimum percentage grant, (b) is not. | |
Grant paid:
| a) 5000 x 50% = | 2500 |
| b) 3800 x 35% = | 1330 |
Total | 3830 |
If applicant's income had qualified for 65% grant:
| Total cost 5000 + 3800 | = 8800 |
8800 x 65% | = 5720 |
C Subsequent grant
Same house as (2), 8 years later, under a new owner, the roof needs to be replaced at a cost of 18,000. The council agrees that the full cost is eligible for grant, but identifies the previous grant paid under (2).
The amount of the previous grant is deducted from the maximum approved expense for the current grant, but not where the previous grant was paid at the minimum percentage.
| Maximum approved expense | 20,000 |
| The amount of previous approved expense, not paid at minimum percentage, | 1330 |
| New maximum approved expense | 18,670 |
| |
| If the previous grant was paid at 65%: | |
| Maximum approved expense | 20,000 |
| The amount of previous approved expense, not paid at minimum percentage, | 5720 |
| New maximum approved expense | 14,280 |
The council can apply to Scottish Ministers for agreement to increase the approved expense to meet the full costs of 18,000.
E2 Assessment of applicant's contribution - owner-occupiers etc.
Mr & Mrs A - Owner occupiers, both working, one child of school age.
Mr A's earnings, after tax and NI | 21,000 |
Mr A's pension contributions (subtract half this figure) | 318 |
Mrs A's earnings, after tax and NI | 18,000 |
Mrs A's pension contributions, 270 pa | 135 |
Income from investments / savings | 1400 |
Child Benefit - N/A | N/A |
Total income 40106 - but… | |
Mortgage payments 720 per month, of which 50 insurance premiums (remember to multiply by 12!) | 8040 |
Allowance for child, 47 per week | 2444 |
| |
Total assessable income | 29,622 |
Applicant's contribution 88% - grant 12% |
Mr B - Owner-occupier, retired.
State retirement pension | N/A |
Occupational pension | 9,500 |
Income from savings | 800 |
Expenses paid for driving for a charity | N/A |
Mortgage - paid off | |
No allowances apply | |
| |
Total assessable income | 10,300 |
Applicant's contribution 42% - grant 58% |
Miss C - Tenant, disabled.
Earnings, after tax and NI (part-time work) | 4000 |
No occupational pension contributions. | |
Income-related benefits/tax credits | N/A |
Disability-related benefits/tax credits including DLA | N/A |
Regular payment from local charity for disabled people | N/A |
Rent payment 300 per month | 3600 |
Housing Benefit | 3600 |
Allowance for disability 35 per week | 1820 |
| |
Total assessable income | 2180 |
Applicant's contribution 10% - grant 90% |
Mr & Mrs D - Owner occupiers, Mrs D is retired, Mr D and their eldest child, who has just left college, are both registered blind.
Mr D's earnings, after tax and NI | 12000 |
Mr D pension contributions (subtract half this figure) | 180 |
Mrs D occupational pension | 3700 |
Mrs D state retirement pension | N/A |
No income from investments | |
Mortgage 260 per month | 3122 |
Disability-related benefits/tax credits including DLA | N/A |
Contribution to student support | N/A |
Allowance for child 2, 47 per week | 2444 |
Allowance for child 1, was student for 12 weeks this year, 47x12 | 564 |
Disability allowance for child 1, 42x12 weeks | 504 |
Allowance for disability, couple rate 50 | 2600 |
| |
Total assessable income | 6376 |
Applicant's contribution 28% - grant 72% |
Mr E - owner-occupier, mature student.
Mr E - mature student |
Employed earnings after tax and NI - packing mail order goods, weekends, basic salary plus bonuses | 4659 |
No pension contributions | |
Freelance proofreading (self-employed, after tax and NI) | 1500 |
Voluntary environmental work - paid expenses plus 10 per day, 30 days last year | 300 |
Lodger pays 220 per month, 2640 per year - taxable income after expenses 910 | 910 |
Income from savings | 600 |
Student support | N/A |
Mortgage payments 280 per month | 3360 |
| |
Total assessable income | 4609 |
Applicant's contribution 20% - grant 80% |
E3 Assessment of applicant's contribution: landlords etc
The following examples are based on an approved expense of 10,000.
A Increase in value from works is 10,000 or more
A(1) Criteria met:
Applicable cost (cost of works - increase in value)
| 0 |
Minimum grant (not in categories)
| 0 |
Grant payable
| 0 |
A(2) Criteria met:
Applicable cost (cost of works - increase in value)
| 0 |
Minimum grant (50% of approved expense)
| 5,000 |
Grant payable
| 5,000 |
B Increase in value from works is 8,000
B(1) Criteria met:
- bringing empty property back into use
- part of area refurbishment
Applicable cost (cost of works - increase in value)
| 2,000 |
Grant on criteria
(20% + 2x20% = 60% of applicable cost)
| 1,200 |
Minimum grant (not in categories)
| 0 |
Grant payable
| 1,200 |
B(2) Criteria met:
Applicable cost (cost of works - increase in value)
| 2,000 |
Grant on criteria
(20% + 1x20% = 40% of applicable cost)
| 800 |
Minimum grant (50% of approved expense)
| 5,000 |
Grant payable
| 5,000 |
C Increase in value from works is 4,000
Criteria met:
- part of area refurbishment
- improves BTS house
- includes works to common parts
- improves accessibility for disabled people
Applicable cost (cost of works - increase in value)
| 6,000 |
Grant on criteria
(20% + 4x20% = 100% of applicable cost)
| 6,000 |
Minimum grant (50% of approved expense)
| 5,000 |
Grant payable
| 6,000 |
D Increase in value from works is 5,000*
Criteria met:
- brings empty property into use
- part of Community Trust scheme*
- improves BTS house
- improves accessibility for disabled people
Applicable cost (increase in value disregarded)*
| 10,000 |
Grant on criteria
(20% + 4x20% = 100% of applicable cost)
| 10,000 |
Minimum grant (50% of approved expense)
| 5,000 |
Grant payable
| 10,000 |
* The calculation is on the full approved expense irrespective of any increase in value, since this a charitable or non-profit housing provider.
E No increase in value from works
Criteria met:
- part of a refurbishment scheme
- includes works to common parts
- improves accessibility for disabled people
Applicable cost (cost of works - increase in value)
| 10,000 |
Grant on criteria
20% + 3x20% = 80% of applicable cost)
| 8,000 |
Minimum grant (50% of approved expense)
| 5,000 |
Grant payable
| 8,000 |
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