Service charges

A service charge is a payment for the costs of managing, maintaining, and providing specific services. It is paid in addition to the basic rent that you pay to live in your home.

I pay rent - why do I have to pay service charges?

Your rent only covers the rental of your individual property. If you live in one of our homes and have access to - or use of - communal areas or shared facilities, you will need to pay service charges.

In some locations, we may also charge for costs of utilities, water, or heating provided within your home. These are known as 'personal charges'.

You may also be asked to pay an administrative charge, as part of the total service charge. This charge covers any administrative costs incurred when organising and managing the previously mentioned services. This charge is set to up to 10% of the costs of communal service charges.

What we're doing to improve service charges

  • Service charges in all locations are now broken down into separate charge codes. We now have 14 different charge codes, which provide greater transparency about how the service charge is made up, and what it covers. These charge codes are listed further down on this webpage
  • Following consultation with tenants in late 2024, we're introducing service charges in more locations - starting with residents who live in a 'block' with either internal or external communal areas
  • We have applied caps to increases in some locations, to minimise the financial impact on tenants

Which services are being charged for?

Charges vary from location to location, and will depend on which services are being provided.

Service charges fall into two categories - communal charges and personal charges.

Communal charges

Communal charges are eligible for Housing Benefit, and the Housing Element of Universal Credit. This means that if you are eligible for these benefits, you will be able to receive assistance with paying some or all of these costs (depending on your entitlement).

Communal charges are as follows:

  1. Communal Repairs and Maintenance: For the costs of repairing and maintaining communal areas when something breaks, or becomes damaged
  2. Communal Health and Safety: For the maintenance of health and safety in communal areas (for example, Legionella testing, fire risk assessments, emergency lighting testing and maintenance, asbestos surveys)
  3. Communal Electricity: For electrical power for communal areas - typically to power the communal lighting, alarm system, and any appliances that are provided
  4. Communal Water: For water provision for communal areas (for example, communal laundry, water for cleaners, or a tap outdoors for a communal garden)
  5. Communal Heating (oil/gas): For heating provision for communal areas, which is provided by a district heating system
  6. Communal Cleaning: For cleaning of communal areas - including staff costs and materials
  7. Grounds Maintenance: For grounds maintenance services (for example, grass cutting, hedge trimming). Grounds maintenance services are provided by our Public Realm Team
  8. Sheltered Housing Management: For the costs associated with providing sheltered housing services (for example, staffing, alarm monitoring costs)
  9. Communal Laundry: For rental, servicing and maintenance of communal laundry machines
  10. Communal Window Cleaning: For window cleaning in communal areas
  11. Administration Fee (10%): For management and admin fees associated with running the Service Charge Team, calculating charges and issuing letters

Personal charges

Unlike communal charges, personal charges are for services provided within your home. They are ineligible for Housing Benefit and Universal Credit.

Personal charges are the costs that many people pay to their energy company directly.

  1. Personal Electric: For electrical power for tenants' flats - this may be for appliances and lighting, or for an electric heating system - or both
  2. Personal Water: For water costs of individual properties
  3. Personal Heating (oil/gas): For heating provision of communal areas, which is provided by a district heating system

How are service charges calculated?

Service charges are calculated based on actual costs of services being delivered, and planned services, divided by the number of properties in each block of flats or sheltered scheme. The total cost you pay may not be the full costs incurred in delivering the services to you. It is only a contribution toward the full costs - especially where caps are applied.

The charges are set in accordance with our Rent and Service Charge Policy.

Where personal charges exist, they vary based upon the size of the property. For example, a bedsit property will pay less for heating than a two bedroom flat within the same building.

Do you make a profit from these charges?

No. We set these charges only to recover the costs of the services that we provide to you.

In sheltered housing and in some other locations, we are not yet charging for the full cost of providing services - for example, for grounds maintenance, laundry provision, and maintenance of the alarm system.

We have closely examined the costs for utilities, repairs and services between October 2023 and September 2024, so we can set charges which accurately reflect the costs of services provided.

How to pay your rent and service charges

Our preferred method of payment is via Direct Debit.

Once you have set up a Direct Debit, you do not need to do anything else - the payment will be collected on your chosen payment date.

Please visit our How to pay your rent webpage for more information.

I am struggling financially and need help

If you are struggling to pay your rent - or are worried about paying your rent and or other debts - please contact our Income Team, so that we can discuss your situation with you in more detail.

Please email HRAIncomeTeam@baberghmidsuffolk.gov.uk or phone 0300 123 4000.

It would be helpful - but not essential - if you complete an Income and Expenditure sheet beforehand.

If you are on Housing Benefit or receive Universal Credit, you may be able to apply for a Discretionary Housing Payment. If you are struggling due to the cost-of-living crisis, you might be able to apply for assistance via the Household Support Fund. Please contact our Income Team for more information.

What if I am not happy with the standard of services provided?

Quality of service is important to us. Please be assured that we will conduct regular inspections of the communal areas of our buildings. If you have any issues or concerns about the service provided, you can raise them by contacting us on 0300 123 4000.

If you live in sheltered housing, you can also speak to your Sheltered Housing Officer.

We would like the opportunity to respond to any queries and service requests before you raise a complaint. However, you are always able to access our complaints process.

You can also visit our Rent review webpage for more information.