Thanks M, saved once again !
Googling "chapel of ease" as it's a new term to me gives "a church building other than the parish church, built within the bounds of a parish for the attendance of those who cannot reach the parish church conveniently"
http://en.wikipedia.org/wiki/Chapel_of_ease

Looking at Westbury area specifically I find mention of such a Chapel at Chaxhill, linked to Westbury Parish Church, which seems the right locality wrt a Lydney burial ?

http://www.uk-genealogy.org.uk/england/Gloucestershire/towns/WestburyonSevern.html
http://www.british-history.ac.uk/report.aspx?compid=15769

Does this address imply this particular Ann is working for/at the Chapel as part of her living off the Workhouse Union perhaps ?. Did she live at one of the 10 or more appartments attached to it, along the lines of alms houses ?
But if she is "living off own means" then ??. Maybe she is keen to clarify that she may be living at the Chapel aka Workhouse, but "NOT" as a pauper inmate ??

Hopefully Paul can help clarify this, please.