UC and household bills

MiddleChild

Hi,
I have just found out what I'm going to be getting on UC. It's slightly more than I got on ESA. I'm over 25, single, live with my parents (who get state pension and rent from local HA, pay full rent and council tax because their capital is over £16k). My question is because I live with them but they pay for everything can I contribute to any bills? Would there be any implications for myself and them? Thanks

huckster

Yes you can pay them to contribute towards living costs and there is no implications for them or you.

HillStreetBlues

MiddleChild said:

Hi,
I have just found out what I'm going to be getting on UC. It's slightly more than I got on ESA. I'm over 25, single, live with my parents (who get state pension and rent from local HA, pay full rent and council tax because their capital is over £16k). My question is because I live with them but they pay for everything can I contribute to any bills? Would there be any implications for myself and them? Thanks

No & no.††††††††††††††††††††††††
If your parents are both over state pension age then the £16k limit doesn't apply that's for working age people.
There is a lower limit of £10k after that a deduction is made, there is no upper limit.

MiddleChild

I thought on UC they requested bank statements and I have to explain my outgoings. I was also concerned as I think my parents might be drawn into pay tax as their state pension is close to the PSA. I didn't know if I gave them money towards bills it counts as income that they have to declare? Thanks

Muttleythefrog

MiddleChild said:

I thought on UC they requested bank statements and I have to explain my outgoings. I was also concerned as I think my parents might be drawn into pay tax as their state pension is close to the PSA. I didn't know if I gave them money towards bills it counts as income that they have to declare? Thanks

UC can carry out checks to see 'if they're paying you the correct amount' and request some recent statements. They may ask about some transactions but you're entitled to spend your money... I mean if there's thousands sent to your parents they may query that especially if in doing so it affects entitlement.. but I doubt that's the case here. I wouldn't worry... you're not doing anything wrong or unusual... it's normal for adults living together to share responsibility for bills but have one bill payer. But regarding bills...why not put a couple of them into your name.. pay directly... if you have concern over being seen to be sending them money for bills... and let them pay for the others. It'll perhaps help ultimately with your credit scoring too although not short term. So perhaps offer to take over responsibility for the broadband and energy bills (other options TV packages and TV licence perhaps) as these are often ones you can save by switching which dare I say it older people may not be so readily keen to do.... regarding the former you might be able to get a social tariff like from BT and regarding the latter you can save them effort checking the market every 6 months or year for better deals to switch to...

sherbie28

Thank you so much for all the information. You've answered all my questions and it's so helpful to be able to turn to a board like this to get instant answers.

badmemory

Any "keep" you pay to your parents is not taxable & provided they do not claim pension credit leading to possible increased savings, it should have no impact on their financial situation.  As for explaining your outgoings, I suspect even the DWP will expect you to eat if nothing else.  My son has been contributing for over 20 years now.  If they don't like the idea you could always sort a monthly large, especially heavy items, shop online or as previously suggested take on some regular bills, or both.  You need to discuss with them what they feel comfortable with.

I do think that even if only for your own self esteem that you should contribute.  It isn't just about the money.

Robbie64

Paying board (or keep) to your parents isn't a problem and indeed, is something that would easily explained if the DWP ever did query your spending. For your parents, receipt of board / keep money is simply you paying a contribution to the running of the household. It wouldn't be treated as taxable income.