Living rent free

Someone recieving ESA is allowed to rent free in an entire 4 bedroom house to themselves. No one else lives in the house.

Could the DWP say the has a theoretical income from this arrangement and reduce their ESA?

(The claimant lives in a friend's empty house without paying rent in order for the property to avoid "empty house" penalty on the council tax.)

Hi Finni

As Gary has said the answer is no.

'Could the DWP say the has a theoretical income from this arrangement and reduce their ESA?'

What is 'theoretical income' I wonder?

ESA does not cover housing costs so I can't see how this arrangement is costing the benefit system more, in fact it could well be saving it money! If the ESA claimant was living somewhere else where rent was payable he may be eligible to receive Housing Benefit and if so that would cost the benefit system more wouldn't it?

Perhaps the claimant should be left in peace Finni!

Kind regards

Mr B

[quote="Gary" post=257706I have never heard of 'theoretical income', there is 'notional income.' Income one may not have received but on which one may still be taxed. [/quote]

Ye, you are correct. I was referring to "Notional income" but used the wrong phrase "theoretical income".

I have a supplementary question. If a person claiming income-related ESA lives in a property and, this time, keeps watch on someone else who is elderly and frail who also lives there, then would notional income arise from that responsibility which might reduce their ESA?

(No one else lives there, both are single and do form a cohabiting couple.)