Taking in a lodger

Katrina65

Will I lose my severe disability premium if I rent a room out to a stranger? I would also declare this to the DWP 

poppy123456

No, not if there's a commercial agreement. However, rent from a lodger when claiming Income Related ESA there's only a £20/week disregard and after this your ESA is reduced £1 for £1. This will likely mean you'll be worse off by taking in the lodger.

Katrina65

Many thanks just got to look at everything 

poppy123456

Yes income from a lodger is disregarded when claiming UC. However, you will lose the SDP by claiming this. You will be entitled to the SDP transitional protection if you claim UC as well as the LCWRA element from the start of your claim. 

You will be worse off compared to what you're receiving now because the TP is actually less than SDP but may still be better off with the income from a lodger.

You should also be aware that the TP will erode over time, so if other elements increase, the TP decreases until such a time it will erode completely.

If any part of your ESA is contributions based this will continue but be deducted in full from any UC entitlement.

Flossy73

Can anyone tell me if you can have a lodger on new style esa in support group with no deduction please? I’m not on UC, only PIP and new style esa 

Flossy73

Can anyone tell me if you can have a lodger on new style esa in support group with no deduction please? I’m not on UC, only PIP and new style esa 

poppy123456

New style ESA isn’t means tested so income from a lodger doesn’t affect it.

If you’re claiming single person discount for council tax then you will lose that. 

Flossy73

Thank you Poppy, that’s really helpful