Social security & Lodgers

garreh

If an eldery lady of 70 is on social security living in her own home by herself in the UK, is it possible for her to take on a lodger in the spare room? She is worried about this affecting her social security.

Forgive my ignorance. I don't even know the difference between Social Security and a State Pension!

chesky369

There's a scheme called 'rent a room' where you can rent to a lodger up to £4,200 (or thereabouts) before it affects your tax situation. However, it would still affect your benefits. Does she want to do this because of finance, or does she want the company. If the former, she should go to Age Concern or Citizens Advice, who would be able to tell her if she's getting all the benefits she is entitled to.

chesky369

PS - ask her if she's getting Pension Credits - if she's only on state pension, she may well be entitled.

garreh

chesky369 wrote: »

There's a scheme called 'rent a room' where you can rent to a lodger up to £4,200 (or thereabouts) before it affects your tax situation. However, it would still affect your benefits. Does she want to do this because of finance, or does she want the company.

Shes doing it for the company and if the lodger paying rent would affect benefits, there is a possibility of working around not paying rent but helping out in other areas such as getting weekly shopping, etc.

I am still ignorant about state pensions and social security. I assume she is getting a pension as well as social security, though I could be wrong. It may just be that shes getting social security and thats all, which is possibility why she is so worried about affecting it.

chesky369

There is no such thing as social security. She'll definitely be getting a state pension but you should try to find out if she's getting any of the following :
Pension Credit
Housing Benefit
Council tax benefit

If she lives on her own she would be entitled to a 25% discount on council tax which she would lose if she had a lodger (unless the lodger was a student). Does she own her own house, or does she rent?

garreh

Thanks for all your help so far chesky.

She owns her house and has been living there practically all her life. Looking at http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018923 it seems she wouldn't be entilted to Council Tax Benefit. Though the rules there are a little unclear and seem to focus on Second Adult Rebate a little too much.

I would think that any money she lost in benefits could be made up by rent being paid to match/overweigh the loss.

seven-day-weekend

It would not affect any State Pension (or any other Pensions) but it would affect means-tested Benefits such as Council Tax Benefit and Pension Credit.

Can't say more until we know what income she is receiving and from where.

chesky369

......any money she lost in benefits could be made up by rent ......

I don't really see how you can say this until you're clearer on the precise sources of income of the lady.

garreh

chesky369 wrote: »

......any money she lost in benefits could be made up by rent ......

I don't really see how you can say this until you're clearer on the precise sources of income of the lady.

Shes only on a pension and leads a very routined life. Obviously rent would have to be calculated so it would be high enough to not show any change in her income.

Apologies I do not have a lot of information available regarding her situation which I understand makes it difficult to advise any further.