JSA - Considering Taking In A Lodger

[antone]

I am on contributory benefit, so with the above info, my post is not relevant.

 

Very sorry

 

No worries. The benefits system we have would baffle Einstein.

[tezzaa61]

So would my CTB be affected?

[RaeUK]

So would my CTB be affected?

 

All I can say is mine wasn't. But ...

 

... The benefits system we have would baffle Einstein.

[antone]

So would my CTB be affected?

 

Tentatively, I would say not directly. Your rent income won't be taken pound for pound from your benefit. What I'm not sure about, though, is how having a lodger affects your overall liability for CT and entitlement to CTB. Would you be expecting your lodger to contribute to household bills (including CT) or is that to be included in the £85 weekly rent?

[tezzaa61]

Tentatively, I would say not directly. Your rent income won't be taken pound for pound from your benefit. What I'm not sure about, though, is how having a lodger affects your overall liability for CT and entitlement to CTB. Would you be expecting your lodger to contribute to household bills (including CT) or is that to be included in the £85 weekly rent?

 

To be honest, I hadn't realised that it could affect my CTB. The rent was to include all other bills, but I had not considered CT.

 

I'll have a word with the council on Monday and see what they say.

[id6052]

if in receipt of income based JSA

 

unless you are providing meals, a lodger would fall under subletting rules and not boarder rules

(so section 28190 of the guidance manual would apply)

 

under the subletting rules, the first £20 is disregarded, the rest is taken into account

in your case if you are charging £85 per week, £20 is disregarded and £65 is taken into account

your JSA would therefore reduce to £6 per week

 

the reason i asked whether your lodger would be claiming HB (which others thought was irrelevant) was because if your lodger is claiming HB, this would be limited to the shared room rate which may be significantly less than £85 per week

 

in my local area, the shared room rate is between £55 and £60 per week - so a lodger on HB might not be able to afford £85 per week - i would suggest you check the LHA rates for your local area http://www.direct.gov.uk/en/Diol1/DoItOnline/DG_196239

 

in relation to CTB

 

as you would retain some entitlement to JSA, you would still be entitled to full council tax benefit

Edited September 16, 2012 by id6052

[id6052]

if in receipt of contribution based JSA

 

rental income does not affect contribution based JSA

 

 

in relation to CTB

 

this would be means tested by your LA similarly to income based JSA

 

so rent = £85

disregard = £20

rental income for ctb purposes = £65

 

your household income would therefore be assessed as JSA of £71 + other income of £65 = £136

 

this would result in your CTB being reduced by £13 per week

Edited September 16, 2012 by id6052

[id6052]

also, if the rent is to include all other bills, please note HB will not cover services such as fuel/water/etc

 

so your lodger would need to pay these to you

[Mandycar]

Hi.. i haver a lodger, and she pays me £70 excluding bills and food, how much will this effect my jsa please. i have read the rest of this thread but cant work it out, i do not own my own house, i am in council property, my benefits have never been effected with previous lodgers.

 

thankyou in advance.

Edited October 3, 2012 by Mandycar