renting a room while on esa

joe10190

I am on income related esa and in the support group.
I receive a smi loan payment towards my mortgage.
I am struggling to pay my bills.
I have long term CFS/ME that leaves me bed bound for days at a time, with me just about managing to feed myself.
I very rarely leave the house perhaps 1/2 times a month.
I am looking to rent a room.
I understand if i get a tenant i will keep the first £ 20.00 of rent and lose 100% of the rest.
I also understand if i separate rent from bills, that the payment towards the bills also counts as income and my benefits will be reduced by the full amount of the amount.


The option to take a boarder is treated differently by the DWP.
I can keep 50% of the income over the £ 20.00 threshold but have to provide a meal/meals.
Does this provision of a meal count as work and affect my income related ESA? Or the DWP!s view of my incapacity to work.
What is the minimum meal/s i have to provide?
Can i simply provide a packet of breakfast cereal?
Is the boarder allowed to cook some of their own meals?


Due to my illness there would be times when it would be difficult for me to provide a cooked meal.


Can anyone confirm that renting out a room as storage space counts fully as income with no partial disregard?


Are there any other things that I can do bearing in mind my CFS?ME?


Does taking a lodger/boarder have any relationship with the non-dependent deductions rules


Many thanks
Darrell

LilElvis

You don't have to provide food for a lodger - they are solely paying you a sum for their rent and share of other household bills.

Nannytone

How much ESA are you receiving and do you receive DLA or Pip?/B]

joe10190

thanks for the replies. i receive £ 127.15 ESA no pip or dla only SMI.
if i do not provide meals then i lose all income over the £ 20.00 disregard.
If i can provide a meal i can keep the same £ 20.00 and 50% of remaining rent
thanks
darrell

Nannytone

A better solution may be to charge a low rent and split bills

joe10190

I understand that payment for bills still counts as income and needs to be declared.This will result in my ESA being reduced by the amount of the split bills.
Please correct me if i am wrong.
thanks
darrell

marliepanda

joe10190 wrote: »

Does this provision of a meal count as work and affect my income related ESA? Or the DWP!s view of my incapacity to work.
What is the minimum meal/s i have to provide?
Can i simply provide a packet of breakfast cereal?
Is the boarder allowed to cook some of their own meals?


Due to my illness there would be times when it would be difficult for me to provide a cooked meal.

You won't get the discount for providing a packet of cereal. Otherwise everyone would provide a packet of cereal. You state you cannot provide prepared food due to your illness, so you cannot provide meals.

Housing Benefit and the rent-a-room scheme
How rent-a-room affects your Housing Benefit depends on how the person renting the room is classified.

Boarders: If, along with the room, you are providing prepared food, the renter is classified as a boarder. The first £20 of rental income a week is disregarded along with half of the remaining amount of rent you get.

joe10190

thanks marliepanda for the reply.
i did not think the provision of cereals would suffice but just wanted confirmation.

i prepare a lot of my own food due to digestive problems. I tend to prepare batchesof soup and freeze portions for the bad days. what liitle energy i have is available mainly in the mornings.
would providing soup just for breakfast be enough?

would providing soup just for tea be enough?
thanks
darrell

marliepanda

People do not usually have soup for breakfast.

I do not think this will work. There is a reason that there is extra exemptions provided to those who provide meals. whilst I understand why, you are basically trying to work how to comply in the most minimal way, and thats not fair on your 'boarder' as you are expecting them to have soup for breakfast or be at the whim of your digestive problems.

Nannytone

It isn't income if they pay the bill only if the money goes into your account. Sorry could I ever have one of the utility is changed into their name or if you have a prepayment metre they could top up for you

pmlindyloo

If we dismiss the lodger/boarder option for a moment I think we need to address other ways of increasing your income and/or reducing your expenditure.

Based on what you have said it is possible that you would be entitled to Personal Independence Payment.(PIP) This is a non means tested benefit for daily living and mobility needs. I would strongly suggest you telephone for an application form and seek help completing it through CAB/ welfare advisor.

If you are given PIP daily living and live alone then you would also be eligible for extra money with your ESA ( the Severe disability premium)

PIP and the extra premium on your ESA would increase your income by a fair amount.

CAB could also check that you are on the best tariffs for your utility bills and deal with any debts.