How long can Guest stay with person receiving Single-Person Council Tax Discount?

[PeterinLondon]

I've been staying at my mother's house, which she owns, since late last year, as a guest - i.e. not paying her any rent. She receives single-person discount for council tax. Initially I had asked to stay just for 2 weeks whilst I got my health back on track.

But instead, my health took a turn for the worse, and instead of getting back into work in that 2 weeks as planned (and consequently then being able to afford my own private property), I have been receiving ongoing medical treatment, and have also been on Universal Credit benefits. I also got in touch with my local council's Housing team last year to say I needed a new place to live (because without an income I could not afford private rent). But their handling of my application has been delayed - in part due to their long waiting list for Housing, and in part due to the coronavirus epidemic (making recent house-viewings very limited).

My mother did give me 28 days notice to leave last year (because she was concerned about not being able to afford losing her Single-Person-Discount) - and I have well exceeded the 28 days - but as goodwill gesture didn't have much choice but to let me say as she didn't want to have to put me in a completely homeless situation if my local council hadn't found me something yet.

Last week my mother received a letter from the council's Benefits service, asking to confirm if I was now resident at her place (presumably because the Housing team who is helping me find a new place notified them that I was staying at her place until I found a new place) - they have asked her to respond within 1 calendar month to avoid loss of benefits.

This has got me concerned, about several things:

1. Would it mean my mother loses her Single-Person Discount, or even gets penalised with loss of benefits, as I have been staying with her? I feel bad about this - because it was me who kept on telling her I would only be staying for "another couple of weeks" (thinking that my local council would sort me out new Housing very soon) - this is why she had not notified the council yet - thinking I would be leaving imminently. So my fault really.
2. Would the fact that I myself am on benefits, and that I've been on the council's Housing wait-list for a long time (i.e. it was out of my hands if they had a long backlog of applicants to attend to first), be taken into consideration?
3. Is there a time-period leeway within which a person can be considered 'guest' (e.g. if they stay less than 6 weeks they can be considered a guest and there is no need to notify local council re single-person discount)?

Thank you in advance for any responses.

Yes your mum will lose her single person discount. she will also have to back pay what she owes backdated to the time you moved in. The fact that your on benefits won't be of any consideration, and there is no time leeway for "guests", no, because "guest" could mean any number of things.

You and your mum are just going to have to pay it i'm afraid.

Hello OP,

Without going into the reasons as to why this has taken so long, this can be dealt with very quickly.

The letter is asking if you, are a permanent resident at the dwelling? Yes?

Where are you registered for your UC?

If you're a 'household' as in you're a resident, then it is up to your mother to inform council tax of her change in circumstances.

I'm unclear as to what other benefits she is in receipt of, but you say she owns her home? So theres no hosting benefit to consider? Is this correct?

She has 28 days to respond and she must explain the situation in writing - dates you moved in, etc. Without emotion. Just facts.

Aside from the CT sibglevperson discount, I think you also need to address your own claim too. I presume you're in receipt of a single person without children/housing element?

One way around this going forward, as your mother owns the property, is that you become her lodger. You'd be able to claim housing costs under UC (she would have to get a lodger agreement) and she would then benefit from the tax free income which that brings, and while you wouldn't be able to claim CT support yourself (as live in landlords have to pay CT at 100%) she would be able to factor the increase into the rent she charges you. It may be then she is not out of pocket and you're going about this situation in the right way.

It is all a long way round things, but your mother does need to respond to the letter within 28 days, sooner the better.

HTH.

www.citizensadvice.org.uk/housing/renting-a-home/subletting-and-lodging/lodging/taking-in-a-lodger-what-you-need-to-think-about-first/

OP, a link to CAB advice on lodgers.

You won't be able to claim housing related benefits as a lodger because you are living with a close relative (even if you put together an agreement and need to pay her rent).

You have long since passed the stage of being a guest and your mother will lose the SPD. If she's on benefits a non dependent deduction might apply to her claim because you live there. You being on the housing list won't be relevant.

OP, the PP is correct re housing benefit or housing related costs.

But, depending on your mother's entitlement and yours, she may be exempt from SPD.

There are some exemptions around this area as opposed to just treating you as a 'couple'

As I understand it, your mothers single person discount will not valid if you don’t have another residency elsewhere where you pay (or receive benefits for) council tax.

Thank you all for your prompt and thorough replies!

I asked my mum if I could see her Annual council tax bill for 2020/21. It amounts to £1,963, and of this £491 is Single Person Discount. She is on state pension, so she currently does not pay anything toward the £1,963.

So I think the easiest thing might be if I volunteer upfront to the Council to pay the £491 - which I can afford to do from my Universal Credit benefits payments. Any thoughts on this?

Because the more important thing to me is that my mother doesn't lose her benefits payments (i.e. state pension, etc.) - it was the wording of "loss of benefit" that got me worried in that letter from the Council Benefit Service (their exact wording is "This information should be supplied within 1 calendar month, to avoid loss of benefit" - don't know if this is their standard wording or what). Hoping that it's not a punishable offence or nothing that she hadn't reported her change in circumstances? (which was my fault as I kept on telling her that I would be moving out v.soon once my Housing application had been processed).

BakedCam - in response to some of the excellent points you raise:

1. "permanent resident" - No - because I am only staying until I find a new place (though technically, as I don't have anywhere else to stay, maybe the answer would technically be Yes)
2. I am registered for my UC at a Jobcentre in the same Council that my mother is based in (i.e. where I am staying now) - it is also the same Council to whom I had applied to for Housing support.
3. She owns the home, so is not on any Housing Benefit. But she does receive state pension.
4. I am currently in receipt of single-person Universal Credit without Housing Element (though this will change to "with Housing element" once I do agree a new place)
5. Thank you for the suggestion about being a Lodger - but I think what Isleepinahedgefund says about being a close relative is correct - I won't be able to register as a Lodger if staying at a close relative's place.

The benefit the council are referring to is your mums council tax support. She will not lose her state pension.

You were never just staying there OP. The second you lost/gave up your home is when you began living at your mums so I am afraid it's not a technicality and council tax should have been informed.

The council will review the ctax award made to your mum from the date they believe you moved in. They will remove the SPD and also review the household income to calculate your mums previous council tax support award.

This could result in an overpayment of council tax benefit which they will reclaim. So be aware the amount your mum owes may not just be the SPD it maybe a large portion of last years council tax bill if they find that they have overpayed her.

As you claim UC there will be some council tax support awarded to the household so you should not have to pay a large sum back.

You need to provide the council with your tenancy termination notice so that there is proof of when you moved in to your mums so that they dont decide it was for the full year.

I am sorry that you have been so ill do you claim PIP at all?
It's a non means tested benefit so will not affect your UC and you can make a claim as long as your illness/disability has been present for 6 months or more.
You can claim by calling 0800 917 2222.
You will need your NI number, health professionals details and your bank details when you call.
This could result in an extra £58 per week for you.

Also if your mum cares for you for more than 35 hours per week then she could be eligible to claim carers allowance if you claim PIP which around £66 per week.

Thank you DollyDoDo for the excellent points you raise.. in response:

• So the total council tax support she got for the entire year (i.e. which she didn't have to pay anything toward) was £1,963, and of that, £491 was SPD. I can afford to cover the £491 if necessary, but if they want £1,963 back that would be a concern? Is it likely they would try to reclaim the full £1,963 (as some sort of penalisation for not informing them asap)?

• The household income has been zero for several years - as my mother has been retired for several years - and since I moved in last year, I have not had any job (nor any other means of income other than the UC benefit)

• Providing proof of when I moved into my mum's would be a challenge. Because prior to moving in to my mum's last year, I was staying with my best friend from university who also lives in London - who was letting me live with him free of charge (as he had already paid off its mortgage). And in the meantime I was getting all my important letters (e.g. bank statements) delivered to my mum's current address (because that's where I've always had them delivered as I was born and raised at that address - so I would just pick those letters up from my parent's house).

• I have applied had my condition for more than 6 months - so I have applied for PIP, i.e. I've filled in their questionnaire and posted it to them - awaiting to see what they say. I didn't know about the claim carers allowance. Hoping it doesn't get to that of course, hoping I recover sooner. But whether I do or don't, that would be independent of any of the council tax support stuff right (or should I let them know that I've applied for PIP as it may affect their decision?)

Thank you again.