Do you lose your SDP if you take in a lodger?

eggyf7

Hi.

I have a 2 bedroom flat and due to the bedroom tax i would like to take in a lodger. I am on DLA middle rate care/low rate mobility and in the support group for ESA and i also receive the Severe Disability Premium for staying alone. My question is, if i was to take in a lodger to help pay my bills(not a carer) would i still be entitled to my SDP?

Thanks

jacques_chirac

You would lose your entitlement to the SDP, however you will have someone else contributing to the utilities etc so you shouldn't be any worse off.

eggyf7

Thanks, i will need to find out what my SDP is worth(i think its £59 a week) and decide what to do. At first glance im better off alone as i get 240 a month on SDP, pay £30 a month rent as im on HB + CTB, and pay about 140 on bills. If i took in a Lodger(a friend) i would lose 240 but gain 70 from bills and my 30 rent would be scrapped but i would need to pay CT at a discounted rate. 140 worse off!!

nannytone_2

jacques_chirac wrote: »

You would lose your entitlement to the SDP, however you will have someone else contributing to the utilities etc so you shouldn't be any worse off.

surely the whole point of having a lidger would be to make the OOP 'better off' ratger than 'just no worse off'?

they will lose almost £60 a week with the SDP and only be allowed to keep the first £20 a wekk before it affects benefits.

so they would gain nothing, but have to accomodate another person in their home. doesnt sounf like much of a deal

eggyf7

Agreed Nannytone!

Housing_Benefit_Officer

Boarders and sub tenants are not counted as members of your household and I believe you shouldn't lose your severe disability premium. Trying to find a link to the DWP guidance.

jacques_chirac

nannytone wrote: »

surely the whole point of having a lidger would be to make the OOP 'better off' ratger than 'just no worse off'?

they will lose almost £60 a week with the SDP and only be allowed to keep the first £20 a wekk before it affects benefits.

so they would gain nothing, but have to accomodate another person in their home. doesnt sounf like much of a deal

No, why should someone profit from their already subsidised social housing?

pmlindyloo

Does this help?

W3.226 When deciding if the claimant lives alone for the purpose of awarding SDP, disregard



[FONT=Frutiger LT 56 Italic,Frutiger LT 56 Italic][/FONT]
[FONT=Frutiger LT 56 Italic,Frutiger LT 56 Italic][FONT=Frutiger LT 56 Italic,Frutiger LT 56 Italic]HB Reg 3 & Sch 3; CTB Reg 2 & Sch 1 [/FONT]


[/FONT][FONT=Frutiger LT 56 Italic,Frutiger LT 56 Italic][/FONT]
• dependants
• a non-dependant aged 16–17
• anyone receiving AA, or middle or higher rate DLA care component
• boarders, other than a close relative
• a joint-tenant/occupier of the home
• a person who lives with the claimant to care for them or their partner, and who is paid by a charitable or voluntary organisation which charges the claimant or their partner for the services provided
• a landlord or members of the landlord’s own family


• a partner who is registered blind or was registered as such within the previous 28 weeks

nannytone_2

jacques_chirac wrote: »

No, why should someone profit from their already subsidised social housing?

and why would someone allow a stranger to live in their home if there was nothing to gain?
lose4 privacy, leave yourself open to trouble for a zero fain?

would you have a strranger in your home just for the sake of it?

Housing_Benefit_Officer

jacques_chirac wrote: »

No, why should someone profit from their already subsidised social housing?

Because the Government legislation makes it beneficial to rent out a room. Under Universal Credit you can keep and make even more money.

Housing_Benefit_Officer

pmlindyloo wrote: »

Does this help?

W3.226 When deciding if the claimant lives alone for the purpose of awarding SDP, disregard



[FONT=Frutiger LT 56 Italic,Frutiger LT 56 Italic][/FONT]
[FONT=Frutiger LT 56 Italic,Frutiger LT 56 Italic][FONT=Frutiger LT 56 Italic,Frutiger LT 56 Italic]HB Reg 3 & Sch 3; CTB Reg 2 & Sch 1 [/FONT]


[/FONT][FONT=Frutiger LT 56 Italic,Frutiger LT 56 Italic][/FONT]
• dependants
• a non-dependant aged 16–17
• anyone receiving AA, or middle or higher rate DLA care component
• boarders, other than a close relative
• a joint-tenant/occupier of the home
• a person who lives with the claimant to care for them or their partner, and who is paid by a charitable or voluntary organisation which charges the claimant or their partner for the services provided
• a landlord or members of the landlord’s own family


• a partner who is registered blind or was registered as such within the previous 28 weeks

So taking in a lodger and you won't lose your SDP.

If you have a sub tenant then only £20 of your rental income is disregarded. Give them at least one meal or breakfast a day and they become a lodger and an additional 50% of the rental income is disregarded.

Sub Tenant v Lodger

Sub Tenant - rent £100 - £20 disregarded = £80 taken as income.

Lodger (1 meal a day) - rent £100 - £20 disregarded - then a further 50% = £40 taken into account as income.

So chuck in a meal or a bowl of breakfast cereal and get to keep more of your rental income and more of your benefits.