On UC and just took in a lodger - is this correct?

Bewilderment

Hello,

I am planning to try to get through to UC on Monday, but in the meantime I hope someone can help - I’m very confused and would really appreciate going into the call with more knowledge!

I am a private tenant who has just taken in a lodger (with the permission of my landlord of course) as a friend unexpectedly had to leave her previous lodging and couldn’t find anywhere to live. I am on UC and anticipated losing my single person council tax discount, but from the research I had done, nothing else major. I declared on my UC account that I now have another adult living with me, clarified in my journal that this was a lodger unrelated to me, and asked if I needed to provide anything further as the system had no way to declare anything else. No one responded to that, but someone posted to ask what my relationship was with the new adult I had declared. I responded again that they were a lodger and asked if I needed to provide anything. Again I haven’t had a reply.

My UC statement for this month now includes a deduction from my housing element, and says this is because “You have 1 adult living with you who is expected to pay towards the rent.” The figure suggests about half of my housing element will be deducted, then my single person council tax discount as well, which means that on balance I will be worse off with a lodger than without one. My friend is using my living room as I have no spare bedroom, and due to some difficult circumstances it may be for a while; we had expected some financial benefit to offset the inconvenience of the arrangement. 

Has UC made a mistake and assessed my lodger as a flatmate rather than a lodger, or is this correct? If it’s correct I’m confused as to why for example Entitledto only states “Under Universal Credit you will be able to keep in full all the rental income from sub-tenants or lodgers without it counted as income,” with no mention of housing element deduction. I found no mention of the deduction on any other advice sites about lodgers and sub-tenants on UC either.

Thanks in advance if anyone can clarify, I really appreciate it!

calcotti

That is not correct.
Does it refer to a ‘housing cost contribution’. If so the error is as follows:
If you had a non dependant (for example an adult child) living with you then they would be part of your benefit unit and your housing element would include a bedroom for them and they would be expected to contribute.
A lodger is not a member of your benefit unit, your housing element will not include a room for them and they will not be expected to contribute. Furthermore the income you receive from your lodger is ignores.
Post a note in the payments section of your journal saying that, as previously advised, you have taken in a lodge and are not a relative. You believe it is incorrect to apply a housing cost contribution to your award as they should only be applied for a non-dependant. Your lodger is not a non dependant because they are liable to make payments to you.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/890313/admf3.pdf

Housing Cost Contribution
F3020 A HCC is a deduction to be made from the HCE for each non-dependant who is in the renters extended benefit unit.

Non- dependant
F3034 A non dependant is someone who normally lives in the home with the renter (or joint renter) and is not
...
4. anyone who is liable to make payments to occupy the accommodation on a commercial basis

————————-

If it is not that and they have literally removed half your rent then that is also wrong and would imply that they have treated you as joint tenants, as you suggest. That is wrong, You don’t meet the definition of either joint renters or joint tenants

Joint renters
F3030 Joint renters are members of the same benefit unit, and are each liable to make the same relevant payments.
Joint tenant
F3031 A joint tenant is a person who occupies the accommodation with one or more other people who are separately liable to make relevant payments and are not members of the same benefit unit.

In that case you need to restate that you remain the sole tenant but have a lodger. You are not joint tenants. You remain the person solely liable to pay the rent to your landlord. 

Grumpy_chap

When you speak with your decision maker, can you simply reference the rules as stated on EntitledTo?
The important thing is that they do not asses you and the lodger as being in a relationship, as that would mean everything is assessed considering the two of you as a couple which is clearly not the case.

calcotti

Grumpy_chap said: The important thing is that they do not asses you and the lodger as being in a relationship, as that would mean everything is assessed considering the two of you as a couple which is clearly not the case.

From what has been posted I don’t think that is what has happened here.

Alice_Holt

The difficulty may be getting to someone in UC who is willing / able to correct their error.
So, I'd be inclined to try various ways of contacting UC to get them to remedy the error. These could include:
a)  Message on your journal;
b) Tel call to the UC helpline;
c) A mandatory reconsideration of their decision to pay you an incorrect amount;  https://www.citizensadvice.org.uk/benefits/universal-credit/problems-with-your-payment/challenging-a-universal-credit-decision-mandatory-consideration/
d) A complaint;
https://www.gov.uk/government/organisations/department-for-work-pensions/about/complaints-procedure
e) Asking your MP to intervene with the DWP to get the error corrected.

I would certainly try the first 3, initially.  

tomtom256

But you must have completed the change in your account and added them as a non-dependant on your claim?

This isn't something the service centre or a work coach should do.

calcotti

tomtom256 said:

But you must have completed the change in your account and added them as a non-dependant on your claim?

This isn't something the service centre or a work coach should do.

Hadn’t thought of that. OP can you remember what you reported? Other than the journal note did you report a change of circumstances in the housing section? If you did that will be what has caused the confusion. 

Other people who live with you
....
Do not include the following

•  lodgers, boarders or sub-tenants.

What this means is that for UC purposes taking in a lodger is not a change of circumstances for UC that needs to be reported.
Perhaps you need to ring and your case manager call tell you what you need to do to correct the information being used to calculate your entitlement.

Bewilderment

Hi,
Thanks, that's very helpful - I did declare that there was someone living with me in that section because it stated that I was to report there "anyone else who lived with me", which seemed unambiguous,  and the information about not including a lodger did not appear. I can see now that that was incorrect,  it was just very unclear what I was supposed to do and how I was supposed to declare the change. I have now removed her from that section so I hope the problem will be fixed.
I appreciate the help!

Spoonie_Turtle

Bewilderment said:

Hi,
Thanks, that's very helpful - I did declare that there was someone living with me in that section because it stated that I was to report there "anyone else who lived with me", which seemed unambiguous,  and the information about not including a lodger did not appear. I can see now that that was incorrect,  it was just very unclear what I was supposed to do and how I was supposed to declare the change. I have now removed her from that section so I hope the problem will be fixed.
I appreciate the help!

You still need to make it clear to them that you made a mistake reporting your lodger and that you haven't had a non-dependant living with you at all, otherwise they won't recalculate your entitlement for the month just gone and you won't get back the deduction they took off.

calcotti

Bewilderment said:

Hi,
Thanks, that's very helpful - I did declare that there was someone living with me in that section because it stated that I was to report there "anyone else who lived with me", which seemed unambiguous,  and the information about not including a lodger did not appear. 

I took it from a guide to claiming UC (which I would link to if I could but can’t because it’s not on a public site). When you are in sections of the journal are there any links to ‘help’ for more information?