Affect on benefits with taking in a lodger/boarder

Legacy_user

deleting post as been given wrong advice according to the council and benefits service

sevenhills

If you receive more than £20 a week then the income you get will affect your housing benefit.


https://www.citizensadvice.org.uk/housing/renting-a-home/subletting-and-lodging/lodging/taking-in-a-lodger-what-you-need-to-think-about-first/

[Deleted User]

It won't be permitted work because that needs to be agreed before starting and taking in a lodger isn't work!

pmlindyloo

The council seem to be talking about non dependent rules as regards your benefits.

However, a lodger is not a non dependent.

See here:

https://england.shelter.org.uk/housing_advice/housing_benefit/housing_benefit_deductions_when_living_with_non-dependants

You are correct in saying that if you provide meals for your lodger then the first £20 of the rent is disregarded and 50% of the rest is counted as income.

Rules for boarders:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/721798/dmgch51.pdf

It might help to have a simple lodger's agreement drawn up and some 'rules' established for your lodger.

Did you mean that you are currently doing some permitted work?

pmlindyloo

ilovefalafel wrote: »

ive read all o that and none of it is specific to my situation, its already affected my 25% council tax reduction, and I'm not on universal credit. there nothing about what happens if you are on esa.

You probably missed this link as I added it later (can't do two links at a time

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/721798/dmgch51.pdf

These are the guidelines for ESA.

pmlindyloo

ilovefalafel wrote: »

oh crikey, that's a lot of info, will get back in a few hours ! :eek:

Scroll down to 51104.

Sorry, should have said that before - still half asleep.

pmlindyloo

ilovefalafel wrote: »

ok read that, thank you, so its calling the extra on top of the £20 ' earnings ' and I'm allowed to earn £120 a week, so surely anything up tp that should not affect my housing benefit or esa ? The council tax seems to be a mystery, I don't understand why I have lost my £25% discount as I'm sure I just read that lodgers don't count but now I cant find it, this is all very complicated.

Did you scroll down to 51104?

Sorry, we keep cross posting.

The rent is not considered earnings - it is income.

poppy12345

ilovefalafel wrote: »

ok read that, thank you, so its calling the extra on top of the £20 ' earnings ' and I'm allowed to earn £120 a week, so surely anything up tp that should not affect my housing benefit or esa ? The council tax seems to be a mystery, I don't understand why I have lost my £25% discount as I'm sure I just read that lodgers don't count but now I cant find it, this is all very complicated.

The rent from a lodger isn't permitted work because it's income and not earnings.



Losing your single person discount on the CTR is correct unless your lodger is

• In full-time education
• Already paying council tax somewhere else (this can apply to Monday to Friday lodgers)
• Receiving certain benefits https://www.citizensadvice.org.uk/housing/renting-a-home/subletting-and-lodging/lodging/taking-in-a-lodger-what-you-need-to-think-about-first/

poppy12345

ilovefalafel wrote: »

hi, thank you, so income is not disregarded ? so if I charge rent they will just take it of either my esa or housing benefit? I just realised yu said that a lodger is not a non dependant, maybe they have taken the 25% discount away because I said that I was not charging any thing as they had no income. So if I change the status to a lodger I will get that back?

Only the first £20 is disregarded and it will be taken off your ESA. Read my previous post regarding Council tax reduction, the 25% discount will only apply in certain circumstances.

poppy12345

ilovefalafel wrote: »

I'm just getting all confused , thank you for explaining, and the links, I just don't understand it !

What don't you understand? Rent from a lodger, isn't earnings, it's income and therefore isn't classed as permitted work for ESA.


You won't be entitled to the single person discount on your council tax reduction unless one of these apply.

• In full-time education
• Already paying council tax somewhere else (this can apply to Monday to Friday lodgers)
• Receiving certain benefits. Your lodger having no income doesn't count. If they had no income why weren't they claiming any benefits? How have they been managing for money?

pmlindyloo

ilovefalafel wrote: »

ok, I think I get it now.
Jobseekers allowance was not allowed for 16 weeks.
So £20 extra a week, whoo hoo !

No, it will be more than that if you provide meals.

So, if you charge your boarder £60 a week they will deduct only £20 a week so you will be £40 better off.

They do it like this:

£60 a week income from your boarder.
Disregard of £20 so £60 - £20 = £40
Half of that £40 = £20

So £20 deducted from your ESA. You would be £40 a week better off.