new housemate - housing benefit & council tax implications

mel12

Hi,
My friend is considering coming to live with me for a bit as she can't find work in her town. I have some questions about the benefit implications:

1) would she be able to claim housing benefit for half the rent (and pay that as her contribution to household expenses).
2) what would be the implications for council tax, I currently get the 25% single person discount, would I lose this and would she be entitled to council tax benefit that might cover it?

I am currently working and earn just over the benefits limit and she is on jobseekers, she's not claiming housing benefit currently as she lives with her mum.

Thanks

CIS

2) what would be the implications for council tax, I currently get the 25% single person discount, would I lose this and would she be entitled to council tax benefit that might cover it?

The 25% discount would be lost. She cant claim Council Tax Benefit as the liability for Council Tax rests with you, you can however lodge a claim for Council Tax Benefit Second Adult Rebate but only if she's not a lodger paying you rent.

System

When you say moving in with do you mean as a lodger or would she be put on the tenancy agreement?

mel12

I'd like to put her on the tenancy agreement, but I think the housing association will only allow it once she's been living there a year...
We're hoping to get a transfer to a two bedroom place (initially she'll be in the living room), so I'd think she'd be able to go on the tenancy then

Caz3121

I think you will need the HA's permission to have a lodger, best to check your associations website

mel12

I've already checked my tenancy handbook and its OK. But I'd really like to figure out if she can get any housing benefit if anyone knows? Because otherwise she won't be able to pay any rent except maybe £10 or so out of her jobseekers and thats almost not worth doing as it'll cost me more in council tax (losing the second adult rebate) than it gets. Thanks

HappyMJ

If you are allowed a lodger then she can pay you rent and that can be claimed under Housing Benefit. It'll only be the shared room rate no matter what her age is.

Sam____2

I very much doubt you'll be allowed a lodger in a 1 bedroom property as this would make you intentionally overcrowded, can't see them agreeing to that,
and if she's not on the tenancy then she can't claim housing benefit...

Macro_3

Sam___ wrote: »

I very much doubt you'll be allowed a lodger in a 1 bedroom property as this would make you intentionally overcrowded, can't see them agreeing to that,
and if she's not on the tenancy then she can't claim housing benefit...

A lodger doesn't have to be on the tenancy agreement for a property to claim HB - they would have an agreement of their own. They can claim HB.

That said, the friend would probably be judged to be a non-dep rather than a lodger in this situation.

Sam____2

Macro wrote: »

A lodger doesn't have to be on the tenancy agreement for a property to claim HB - they would have an agreement of their own. They can claim HB.

That said, the friend would probably be judged to be a non-dep rather than a lodger in this situation.

The op wants the friend as a lodger, I'm saying the HA would not agree to that on the grounds it would make them overcrowded, thus the friend would not get housing benefit...

HappyMJ

Sam___ wrote: »

The op wants the friend as a lodger, I'm saying the HA would not agree to that on the grounds it would make them overcrowded, thus the friend would not get housing benefit...

Having 2 adults in a 1 bedroom flat is not overcrowding. The rooms count as the bedroom and the living room so each adult has a room and therefore is not overcrowded.

I could have 9 people aged over 10 (kids under 10 count as half a person) in my 3 bedroom house. 2 large bedrooms upstairs and 1 small one. A lounge and a dining room they all count. I'd consider it way overcrowded but legally it's not.

For more info see http://england.shelter.org.uk/get_advice/repairs_and_bad_conditions/overcrowding