on ESA & affected by bedroom tax - trying to work out how to manage renting a room

Nada666

Nada666 wrote: »

Also I don't understand why the loss of single person council tax is a problem - you will only pay 50% of 100% which is lower than 100% of 75%. That is, instead of paying £264 you pay £176 each.

Hang on. £352 council tax. Per month. Eh? You mean £88 is your tax with a 25% discount - ie, the monthly full bill is £117. That is more like it.

(Actually, bothered to read more carefully - I think £88 is the full bill without discount. Or is it? Whichever way - 50% of 100% is cheaper than 100% of 75% regardless of what the blazes the 100% is!)

Nada666

povertytrap wrote: »

If I split the utility bills, would I need to show proof each month to the lodger of the bills that I receive? (sorry if this is a silly question) - its just that for water I only get billed quarterly and can't get a bill printed out monthly - I would only be able to work it out based on averages and I can't request a meter reading because its done through my social housing landlord. Also for electric I've gone for a direct debit scheme where they bill me online because its cheaper and they average out the bill based on last year's readings.

Also, could I split the internet bill, phone bill & tv licence, & council tax with them, or would that be considered my responsibility to pay?

What you do is take a monthly instalment every month for average of all shared bills. You can then reconcile any differences more irregularly.

Credit-Crunched

Let me get this straight, you are in a subsidised council property being funded by the tax payer, and you are stressing as to how you can reduce your bills by letting out a room and taking income from it. You are not willing to foot the bills on your own.

Furthermore, you are not willing to move houses as you 'love' your location as its quiet, close to town and the shops.

I am sure there are plenty of people that would swap to have your 'stresses', I mean, it must be unbearable at times......

Nada666

Credit-Crunched wrote: »

Let me get this straight, you are in a subsidised council property being funded by the tax payer, and you are stressing as to how you can reduce your bills by letting out a room and taking income from it. You are not willing to foot the bills on your own.

Furthermore, you are not willing to move houses as you 'love' your location as its quiet, close to town and the shops.

I am sure there are plenty of people that would swap to have your 'stresses', I mean, it must be unbearable at times......

To be fair, sharing this luxury is something to be encouraged (yes, the trying to make money and not affect benefits bit is tiresome). The wonderful thing about sharing a decent council house is that it makes it worth people's while to work for a rubbishy wage whereas many tenants in one bedroom properties have no intention of working as they make no money. There is a world of difference between going out to work for £200 a month and going out to work for £500 a month each.

Housing_Benefit_Officer

If you take in a lodger you will lose your Single Person Discount but your Local Council Tax Support will increase by 25%.

If you are in a two bedroom property you will no longer have the 14% reductions and your Hosuing Benefit will increase.

If you are on ESA income based it will be the DWP that will take any rental income into account so your ESA will reduce not your HB or LCTS.

The DWP should use the sdame rules regarding lodgers that Local Authorities use (ie disregard £20 then only count 50% of the balance) - but check with the DWP first. If you charge £100 then £20 is disregarded and 50% of the balance of £80 is taken into account - ie they should only take into account £40 of the rent money as income - check with the DWP first though.

povertytrap

Credit-Crunched wrote: »

Let me get this straight, you are in a subsidised council property being funded by the tax payer, and you are stressing as to how you can reduce your bills by letting out a room and taking income from it. You are not willing to foot the bills on your own.

Furthermore, you are not willing to move houses as you 'love' your location as its quiet, close to town and the shops.

I am sure there are plenty of people that would swap to have your 'stresses', I mean, it must be unbearable at times......

I'm not going to apologise for being in social housing when having a long term illness meaning that I haven't been able to work, put me here.

I appreciate that other people might be in a worse situation, and have helped people out when I've also not been in a very good way.

I think that the tone of your post is unhelpful - you've made assumptions about me as a person by insinuating that I'm ungrateful or undeserving in some way because on ESA and I'm in social housing, and suggesting that I'm trying to evade paying my bills which I can categorically say is not true.

I would not actually be able to afford to pay the bedroom tax for more than a very short period of time so I am trying to find a way forward and posted because I thought someone might have experience or knowledge about this. If you do not want to offer positive help or advice in any way, then you do not need to post.

I have only been worried to know that the extra bills that are incurred as a result of renting are covered and that I would be in a position where I could provide what a lodger/tenant would expect.

I am not ashamed to admit that this is a learning curve for me and am thankful for the more positive and supportive posts. I'm just trying to manage the best I can in this situation.

Credit-Crunched

You have failed to see the basis of my point, you say that you are unable to pay the bedroom tax. It isnt a tax, it is a reduction in benefits for people who they deem to be in property that is larger than their needs.

My point was, to assist in the reduction of your bills and not have a reduction (in real terms) in your housing benefit, you should move to a 1 bedroom property, where your rent will be covered.

However, you are not willing to do this, as you 'like' the area you live in. My words, although appearing harsh, are based on reality. Lots of people would like to live close to shops, town, beach etc. However, economics, drive them away, people who work for a living, live to their means, and if that means moving to an afforadable area, sobeit.

I am confused that people in receipt of benefits, seem to deem themselves immune to this rationale, and that they have a given right to live where they desire.

My post was not intentionally inflamatory, however sometimes I think that reality needs to be re-inforced.

HB58

We have seen quite a lot of posts from people bemoaning the 'bedroom tax' and asking how they can get out of paying the extra. Full credit to the OP for trying to find a way of earning extra money instead.

Credit-Crunched

HB58 wrote: »

We have seen quite a lot of posts from people bemoaning the 'bedroom tax' and asking how they can get out of paying the extra. Full credit to the OP for trying to find a way of earning extra money instead.

I dont see this as commendable behaviour, I see this as someone who is fudgeing the numbers. Adding an extra person to her occupancy, just to ensure that she can remain living, at the tax payers expense, where she wants to.

EmmaHerts

Credit-Crunched wrote: »

I dont see this as commendable behaviour, I see this as someone who is fudgeing the numbers. Adding an extra person to her occupancy, just to ensure that she can remain living, at the tax payers expense, where she wants to.

Why shouldn't someone be able to make a choice to stay in a nicer area if they aren't breaking any rules?

I am happy to have my tax used so that someone unable to work due to health doesn't have to live in a hell-hole.