I would like to let my pensioner neighbour use my wifi as they cannot afford their own. I do not require lectures about the wisdom of doing so. I only want to know if BT allows me to do so. I have spent some time in the T&Cs and can not find anything that prohibits it. Only a statement saying I am responsible for the activity of anyone I allow to use my network.
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up to you who you allow to share your wifi
If you mean you home wifi connection, then that is up to you. If you mean "BT-WiFi" then no, as that would mean given them your BT login details, which would allow them to access your account.
Bear in mind that BT do have a cheap broadband package for people on certain benefits, which may be an option for your neighbour.