Lodger using DHP

girl_withno_name

I'm currently looking for a new lodger and have someone interested in the room.

Today I received an (unexpected) message from her support worker asking for details to help her apply for DHP, Discretionary House Payment, from the council.

Support worker has said: Potential lodger works 20 hours a week and also gets part housing benefit. So it is part DSS

Potential lodger has said: Support worker is helping her with the first bond, but can pay rest herself as she works so won't be getting housing benefit.

I'm not sure I understand this situation and whether it's anything to be concerned about.

Can anyone help clarify? What questions should I ask?

Pixie5740

girl_withno_name wrote: »

I'm currently looking for a new lodger and have someone interested in the room.

Today I received an (unexpected) message from her support worker asking for details to help her apply for DHP, Discretionary House Payment, from the council.

Support worker has said: Potential lodger works 20 hours a week and also gets part housing benefit. So it is part DSS

Potential lodger has said: Support worker is helping her with the first bond, but can pay rest herself as she works so won't be getting housing benefit.

I'm not sure I understand this situation and whether it's anything to be concerned about.

Can anyone help clarify? What questions should I ask?

Is this in Northern Ireland?

girl_withno_name

Should've mentioned - I'm in Wales

Rosemary7391

Have you factored in the cost of extra heating/lighting if your lodger is at home more?

theartfullodger

DSS was dissolved 2001. Main rent payment might be HB/LHA or UC Housing element.

DHP is "Discretionary Housing Payment". Discretionary: So council can change their mind anytime (or government withdraw funding for it). Not to be relied on.

In your shoes I'd see if potential lodger has sufficient extra income to cope without DHP.

Clearly any rent income you get may have an impact on your income tax bill (if total more than £7500pa) or benefits (depending on which benefit, possibly any rental income).

I would also ask for what exactly is this potential lodger being given a support worker.

Good luck, hope it works out for you, lodger & support worker.

Red-Squirrel_2

Do you know why the potential lodger has a support worker?

girl_withno_name

I don't know why she has a support worker, but I could ask.

To be honest - this is a not a system familiar to me (support workers, housing benefits) and I'm unsure how they work.

I've had previous lodgers but not clear on this particular situation.

Red-Squirrel_2

girl_withno_name wrote: »

I don't know why she has a support worker, but I could ask.

To be honest - this is a not a system familiar to me (support workers, housing benefits) and I'm unsure how they work.

I've had previous lodgers but not clear on this particular situation.

I think you need to know before you let them move into your home. It could be that they have addiction issues, it might be they have mental health issues, it could be they have physical or learning disabilities. The amount of support they need in order to live independently could have a big impact on you and I would want to know the details before agreeing to anything.

FreeBear

theartfullodger wrote: »

DHP is "Discretionary Housing Payment". Discretionary: So council can change their mind anytime (or government withdraw funding for it). Not to be relied on.

In your shoes I'd see if potential lodger has sufficient extra income to cope without DHP.

My current lodger is on benefits and claims HB - It is a constant struggle for him financially and he is falling behind on rent. Still owes £20 from last month and this months rent is now due. I'll (hopefully) get all of it spread over the next four weeks... If not, I've got the deposit to act as a modest buffer.

Do the affordability checks and the reasons for the support worker.

girl_withno_name

Just spoken to her support worker, apparently she's a care leaver at risk of becoming homeless and, as such, will receive additional support from the council until she's 25.

She's receiving / entitled to housing benefit, but willing forego if I'm not comfortable accepting (this doesn't seem like a solid financial decision for her!) and believes she could cover the rent with her wages.

The rent (including bills) is £270

The support worker has said she earns £170-200 per week (so £736-£866 per month). Although he had earlier said she works 20 hours and I'd guessed at minimum wage, given the role - maybe I'm wrong, maybe there's overtime.

This would put rent at around 31-37% of her monthly income

BlackBird75

I wouldn't really be worried about the lodger affording her rent.

I would be more concerned about any potential "boyfriends" coming in to my house.

I would have a strict "no unauthorised guests allowed" rule.
If you want to check out any potential "guests" and see if you can spot the junkies etc, then that may be ok.