Thinking of taking on a lodger but have doubts/questions regarding ESA.

JillyJolly_2

Hello,

I am renting a private 2 bed room house alone, and landlord said he would allow lodger etc. (£400 a month rent is) I am the sole tenancy holder on assurance shorthold tenancy. I get shared rate housing benefit and cover rest out of my benefits.

I have a good friend who needs somewhere to live, so I was thinking of letting him lodge one of the bedrooms. (I'd like the tenancy agreement just to stay with me and my responsibility with the landlord)

However after reading about it, I'm a bit concerned my ESA would be stopped or reduced?

I get ESA (Support Group - income related) and DLA.

I would only charge him a little and he would claim housing benefit also. I'm just wondering how I could work this out so my ESA benefit would not be stopped or reduced to much, or how much it would be reduced by.

I need as much help as I can get with this, as or though I've done allot of reading, I'm just very unsure about the benefits situation with them potentially being stopped/reduced.

Thanks in advance.

SuziQ

I noticed a lotfo views with no replies so will bumo thisfor you.

Why would you only charge him a little ? That doesn't make sense to me, especially as it seems specifically so that your benefit wouldn't be reduced.he should pay the going rate, surely? Otherwise you/your benefits are subsidising him?

I have no idea whether ESA would be affected by this (DLA wouldn't obviously ) but there seems something odd in this plan. I am not sure he wold be able to claim Housing benefit whilst lodging with a friend either. Hopefully someone with more knowledge than me will advise you.

JillyJolly_2

SuziQ wrote: »

I noticed a lotfo views with no replies so will bumo thisfor you.

Why would you only charge him a little ? That doesn't make sense to me, especially as it seems specifically so that your benefit wouldn't be reduced.he should pay the going rate, surely? Otherwise you/your benefits are subsidising him?

I have no idea whether ESA would be affected by this (DLA wouldn't obviously ) but there seems something odd in this plan. I am not sure he wold be able to claim Housing benefit whilst lodging with a friend either. Hopefully someone with more knowledge than me will advise you.

Thanks for the reply. I just thought if I charged less maybe would not effect my ESA rate somehow? As more I charge / more deductions I get?

I got allot of info from this thread but cannot see a clear answer for me personally in this situation? (I just got idea that ESA could be stopped / or reduced as a result, I understand housing benefit would just thinking about ESA situation and them claiming HB)

https://forums.moneysavingexpert.com/discussion/4623361

Are there special rules for friends / none friends (Not a family member) ?

SuziQ

Thanks for the reply. I just thought if I charged less maybe would not effect my ESA rate somehow? As more I charge / more deductions I get?

That is exactly what I was saying to you. If you are deliberately keeping his contribution low to stop your benefit being reduced than you are effectively subsiding him. I am no expert on housing benefit or taking in lodgers, but I know the have been a lot of threads here where friends and famiy lodging together have not been able to receive Housing benefit.

I hope someone will come along tomorrow and answer you comprehensively but you could call your local housing office on Monday and they would be able to give you the definitive advice.

JillyJolly_2

SuziQ wrote: »

That is exactly what I was saying to you. If you are deliberately keeping his contribution low to stop your benefit being reduced than you are effectively subsiding him. I am no expert on housing benefit or taking in lodgers, but I know the have been a lot of threads here where friends and famiy lodging together have not been able to receive Housing benefit.

I hope someone will come along tomorrow and answer you comprehensively but you could call your local housing office on Monday and they would be able to give you the definitive advice.

Thanks, I understand what your saying.

I just want to do this by the book, I like things to be fully legit and correct. It's just the more I look into this around the net, the deeper things get and there being no clear answer so some of what am saying may not seem the right way to do it until I'm corrected. But on here usually you get allot of good help and end up with a clear picture of how it will work out.

My ESA is income related (Just FYI, edited in first post)

JillyJolly_2

Just realized I posted taking on a longer in title lol. Sorry about that, tired here long night, time for bed. Hopefully mod can fix that.

Thanks.

Dunroamin

Wouldn't it be simpler to try to change to a joint tenancy so that you could both claim the shared accommodation rate of LHA and the other tenant's income wouldn't affect your benefits?

Housing_Benefit_Officer

£20 disregarded - then 50% of the balance disregarded and balance treated as income - if and when Universal Credit comes in looks like they will disregard the lot.

von

You will probably have to attend a Living Together interview also so that they can decide whether or not you are living together. This is normal practise when someone moves's into someone's household who is receiving a means tested benefit. You will be asked about your domestic circumstances and your relationship with your lodger.

If you are only charging a nominal rent they may regard this as a sign of a possibly deeper relationship between you than that declared, after all why should you subsidize him, that means that taxpayers are helping him pay his rent.

von

Also if you are receiving the Severe Disability Premium in your Income-Related ESA having someone else living in the household may also affect your entitlement to that. I suggest you contact the CAB for their advice first so that you have the full facts as to how it may affect your benefit.

rds60h

I will PM you with something that may help you.