Money Matters: Managing your finances with 'non-dependant' household members
In this week’s Money Matters column, Wrekin’s debt and energy manager Dan Bebbington discusses how having non-dependant household members can impact your finances, and how to broach these difficult conversations.
Having grown-up children or other non-dependants living in your home can significantly impact household finances.
Extra occupants mean higher utility bills, more food shopping, and greater wear and tear on the home. These costs can add up quickly.
Another consideration is how certain benefits can be impacted. Both Housing Benefit and the housing element of Universal Credit can be reduced if there are non-dependants in the household, because the DWP assumes they will be contributing towards bills.
For Universal Credit, a set amount of £91.47 is deducted per month, except in certain circumstances. These include if you are blind or severely sight impaired, receive certain disability benefits including PIP and DLA, or if the non-dependant receives Pension Credit or Carers Allowance, has a child under five, is in prison or deployed with the Armed Forces.
For Housing Benefit, there is no set amount and the deduction is worked out based on the non-dependant’s weekly income before tax, and can range from £19.70 to £124.55 per week. However there are exemptions to this too.
Whether you claim benefits or not, there’s no getting away from the fact that supporting a non-dependant household member can take its toll financially. It’s something to consider as your children reach adulthood, or if a grown-up child, elderly relative or another loved one asks to move in.
Even if you’re happy to help out, it’s essential to recognise how your budget will be impacted. It’s better to have the conversation sooner rather than later, so everyone knows where they stand and you don’t end up in financial difficulty.
At Wrekin we have encountered many customers who don’t want to ask their adult children or other relatives for money, and this is completely understandable. But it is likely they are either working or claiming benefits of their own, so should be able to help out.
Be sure to approach the conversation with your relatives honestly and tactfully. Start by acknowledging how much you love having them in the home, but be honest about how it affects your finances.
You can then discuss the ways they might contribute. This could be through a set monthly payment, sharing the cost of the food shop, or taking on extra responsibilities.
In the case of adult children in particular, you will also be helping them prepare for one day having their own home and bills to manage.
Wrekin Housing Group customers can always contact our Money Matters team if they need help managing their household finances.
28th August 2024