Employment and Support Allowance (ESA)
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Esa, sdp and taking in a lodger

sunnydayssunnydays Member Posts: 29 Connected
Hi, I wonder if anyone could please answer this question. I am in receipt in esa and receive the sdp premium and am thinking of taking a lodger in. Would this affect the esa premium? Many Thanks

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Replies

  • calcotticalcotti Member Posts: 1,268 Pioneering
    edited February 4
    If this is a commercial arrangement and the lodger is not a relative this would not affect the SDP.

    You would lose your single person discount for Council Tax if you currently get it unless the lodger falls into a category of occupant that falls to be disregarded (such as students). This may not matter if your bill is covered for you by CTR but if you do have to pay a percentage of the bill that amount would increase.

    Moreover the income from the lodger will be taken into account and deducted from your ESA less a disregard of £20/week.

    You might find it helpful to read this
    https://www.citizensadvice.org.uk/housing/renting-a-home/subletting-and-lodging/lodging/taking-in-a-lodger-what-you-need-to-think-about-first/
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • sunnydayssunnydays Member Posts: 29 Connected
    Hi, Thank you for your help and that is totally the case for me. Can I jusk ask would I have to draw up an agreement for housing and council tax department. Thank you again. 
  • calcotticalcotti Member Posts: 1,268 Pioneering
    If you are going to have a lodger it would be prudent to have an agreement anyway.
    For benefits purposes it will make things much simpler to prove the arrangement with an agreement.
    i expect there are various templates available that you can find with an online search.
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • sunnydayssunnydays Member Posts: 29 Connected
    Hi, Thank you for the information, very helpful. 
  • calcotticalcotti Member Posts: 1,268 Pioneering
    If you take in a lodger you will of course need to inform ESA as well as the council.
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
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