Changes to Merton service charge for block caretaking
Important update on your caretaking service charges
We understand that the service charge bills for 2023/24 (sent out in September 2024) have caused concern amongst residents, particularly the charges relating to caretaking costs.
To make sure these caretaking charges are accurate and we’re being transparent, we carried out a review of them, specific to your estate and block. Thank you for your patience as we worked through this important process.
Caretaking charge estimates
The 2023/24 caretaking charges were estimated based on data from 2021/22. Unfortunately, these estimates didn’t fully account for rising costs since April 2022, which led to underestimations for some estates and blocks. We’ve now updated our process to ensure future estimates are based on accurate, up-to-date information.
Actual caretaking charges 2023/24
The caretaking charge for 2023/24 cover both regular and one-off cleaning, and materials needed to maintain cleanliness and safety in communal areas. Clarion directly employs the estate services team responsible for delivering this service. The costs are based on staff salaries, inflation, and increases in material costs. The charges are allocated based on the recorded time spent on each estate. However, as this is a relatively new system, some time and cost allocations were incorrect, causing charges to vary— some increased, some decreased, and some stayed the same.
Review of charges
From this we found that in some instances, time and costs were not allocated accurately. We also found that the estimates for 2023/24 were based on historical data and did not factor in the costs of running the service since 2022. Altogether, this led to incorrect charges that have resulted in some increases, decreases, and some charges remaining the same.
If you have any questions about the charges or our review, our FAQ below may help or send an enquiry via our form below.
FAQs
What are caretaking estate service charges?
The charges cover the cost of cleaning and tidying the internal communal areas of your building and/or estate. This work is carried out by our internal caretaking team.
How are the caretaking charges calculated?
The cost has been calculated by using the salary costs of estate services staff, inflation and increases in material costs. Each estate and block have been assigned a specific time allocation for service delivery so there is transparency on how the caretaking charge is calculated. The monitoring system that was used to record time and costs will not be used to determine your caretaking charges going forward but will be used to monitor the time the caretaking team spend in the block and on the estate.
What will my caretaking charges be for 2023/24?
To ease the financial impact, we’ve capped the caretaking charges for 2023/24 to a maximum of £150.50, with Clarion covering any shortfalls.
As the caretaking costs for 2023/24 have been subsidised how will I know the true costs of the service?
We will in the forthcoming months be visiting various estates to discuss these charges in greater detail.
How can you help me budget for caretaking charges in the future?
The caretaking charges will be phased in over the next couple of years to help you prepare to budget for the costs as follows.
2023/24 Capped at £150.50 - If you have made a payment your account will be adjusted.
2024/25 actual will be capped to £196
2025/26 actual will be capped to £392
2026/27 – the estimates will reflect the true costs of the service provided
If I receive help with the payment of my rent and service charges, will Universal Credit or Housing Benefits pay these charges?
If you are eligible for benefits, Universal Credit or Housing Benefits will pay these charges once they are aware of the date they need to be paid from.
I do not get help with the payment of my rent or service charges, can Clarion provide any support?
If adding these charges to your service charge account will cause financial difficulties our Clarion Futures team will be able to provide advice on the support you may be eligible for. You can find out more from Clarion Futures here.
I’m not happy with the standard of the cleaning and grounds maintenance at my building and on the estate. What can I do?
We're sorry you’re not happy with the standard of the service. Please contact our Customer Service team on 0300 500 8000 (open from 08:30 to 17:00 Monday, Tuesday, Thursday, Friday and from 10:00-17:00 on a Wednesday) or contact us via Live Chat to share more information.
How can I get further information on these charges?
You can contact us by telephone quoting “Caretaking Service Charge Query” on 0300 500 8000 (open from 08:30 to 17:00 Monday, Tuesday, Thursday, Friday and from 10:00-17:00 on a Wednesday). Or use our web form below: