How much lodger affects HB?

cattie

A friend has asked advice on something I know nothing about and wonder if anybody here can advise.

Friend lives in a council flat far bigger than she now needs and currently has to make up her housing benefit by £7 per week. She also gets full council tax benefit as a single person with the 25% discount.

She is considering taking in a lodger as says she is struggling to make ends meet, but wondered how this would reflect on the housing benefit she currently receives. She is unsure whether the whole of the rent she ask for from a lodger would be deducted £ for £ from her housing benefit or is there another formula used to work out deductions from non dependents?

The person she is considering as a lodger is a friend of her son, late 30's & unemployed should that be relevant info. She wouldn't be seeking a high rent, somewhere around £40 week and she would provide meals.

I would imagine with a lodger, she would lose most of her council tax benefit and definitely lose the 25% single occupant discount?

Thanks if you can help.

DomRavioli

Hi there,

Firstly, if this person rents from the council/privately/social housing landlord, they CANNOT take on a lodger without express written permission from their landlord. This is subletting and they can be evicted because of it. As they do not own the property, they cannot rent it out.

Secondly, it will have an effect on the household income, as she is being paid as a landlord, so will have an effect on housing benefit.

If she is struggling to pay the rent, she can ask her landlord (social housing provider) to relocate to a smaller place suitable for her family size.

RAS

Taking a lodger is NOT sub-letting. Completely differnt legal statuses.

The friend needs to check her contract to find out if she need specific permission from her housing provider. What does it say?

If the lodger is unemployed them she will claim single person's allownce on the basis that the other person has a low income (under current rules).

She really needs to know how UC will affect all this though as everything changes then.

She is not thinking about the real cost of having another person in the house or charging nearly enough IMO.

cattie

Her local council will be notified that she has a lodger, should she decide to take one on. She will be doing nothing underhand.

As regards moving, she has been looking for well over a year for a suitable exchange, and wants and needs a ground floor place now. But the ridiculous rules the council now has re required ages of children of anybody who would like to exchange with her and take the flat on , means that as yet, no family with children of required ages have yet been found.

She has no interest in the council relocating her, as she is extremely unlikely to get what she wants in the right location. London councils are not famed for coming up with the goods as far as decent property is concerned when there are so many large or rough estates that make up a big part of their housing stock.

bodmil

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fluffymovie

This 'lodger' would actually be considered a boarder for HB purposes. This means thAt the first £20 of the rent he pays is disregarded and only 50% of the remainder is used. It's important to explain the difference in HB terms as will make a big difference. A boarder receives meals and a lodger does not.

emweaver

does anyone know the difference between a boarder and a non dependant?

Robbie64

emweaver wrote: »

does anyone know the difference between a boarder and a non dependant?

A non-dependent lives as part of the household on a non-commercial basis whereas a boarder (or a lodger) lives in the property on a commercial basis. The latter has certain legal rights and obligations, the former doesn't.