Taking in lodger while on housing benefit?

Adams1

I found a new place to stay, currently looking for a new job myself and moving from a £75/pw room to a £50/pw room so that's a bonus. The problem is, the old lady I'll be moving in with is receiving I.B along with H.B and I'm just wondering, what happens now? I'm running low on my own savings and (being lazy) but was hoping to apply for housing benifit myself till I find a new job.

Question is, is it possible to get housing benifit for myself (£50) if I'm moving in with somebody that already is on housing benefit? The £50 a week includes the room, food (breakfast, lunch, dinner) and the bills. She doesn't know much about this stuff and got a little worried so I need all the facts and if it's not possible, to start looking for a new place ASAP.

Thanks!

-BA-

If she is claiming IB and HB then she will almost certainly have to declare any income from your rent (which she is most unlikely to do). You claiming HB to get your rent paid will put her on their radar and they will pursue her. No she shouldn't be doing it (if she isn't declaring it) but it may well mean that she retracts the offer of the room as she will not want to be found out.

The fact that you stated she doesn't seem to know much about it suggests to me that she wasn't planning on declaring it or she would have been able to give you the correct answers.

tomitma

You wouldn't have been able to claim the full 50pw anyway, as they will deduct from the 50 pounds the money for the bills and the food. You would be lucky to receive 20 pounds.

StormyWeather_2

I agree with the two above comments.

She should declare it as income and that would affect her benefit.

HB for rent only, so there would be deduction for the other services you receive.

£50 a week which includes 3 meals a day, plus bills is a bargain. Does she do all the cooking too?

tomitma

It would cost more than that for one night in a B and B around here.

dmg24

tomitma wrote: »

You wouldn't have been able to claim the full 50pw anyway, as they will deduct from the 50 pounds the money for the bills and the food. You would be lucky to receive 20 pounds.

This is not correct. Any case involving board and lodgings will be referred to the Rent Officer to decide whether it should come under LHA or HB rules. If the RO decides it should come under LHA, no deduction will be made for board etc. If it is decided it should be an HB claim, the RO will decide on an eligible amount for the purposes of the claim.

tomitma

dmg24 wrote: »

this is not correct. Any case involving board and lodgings will be referred to the rent officer to decide whether it should come under lha or hb rules. If the ro decides it should come under lha, no deduction will be made for board etc. If it is decided it should be an hb claim, the ro will decide on an eligible amount for the purposes of the claim.

ignore list

fluffymovie

Just to echo DMG24. The LHA rules would not apply in this case as there is substantial board and lodge so it would be referred and we would deduct for meals and services.

Also, as said by other posters, you can claim benefit but we would then add £50pw to the landlord's income and this would in turn, reduce her HB. We would also amend her Council Tax if she is getting a Single Occupancy Discount and so her bill would increase by 25% but you would not be entitled to claim Council Tax Benefit as you are not the liable party.

HTH

StormyWeather_2

fluffymovie, If the LL is spending part of it on food & bills for the lodger would they count the full £50 as income?

TBH, it sounds as though taking in a lodger is more trouble than it's worth for her. If she follows the rules and declares it, by the time she's paid for the extra food, extra electricity, increase in CT etc, she probably won't be more than £20 a week better off.

dmg24

tomitma wrote: »

ignore list

You have put me on your Ignore list because I pointed out that your post was not accurate? Wowzers!

DeeMarie89

I'm also wondering if she's a tenant, and she takes in a lodger, is there not an issue from whoever is the actual owner of the property with regards to sub-letting?