How will the money I receive from my lodger/s affect my other benefits before and after the Universal Credit?
Before Universal Credit
If you have a lodger after the Under Occupancy Charge comes in to force on 1 April 2013 their bedroom will be classed as occupied. As long as all the bedrooms in your property are occupied on a permanent basis you will not be classed as under occupying your property and will not be affected by the charge.
However, the rent you receive from the lodger may affect your benefit entitlement. The first £20 of rent received from lodgers is disregarded when calculating housing benefit entitlement.
After Universal Credit
If you have a lodger after you have moved over on to Universal Credit their bedroom will not be classed as occupied under the Under Occupancy Charge rules. This means that you will be classed as under occupying your property and will be affected by the Under Occupancy Charge. However, the rent you receive from the lodger will help you pay the charge and any excess rent you receive over and above the charge will not reduce your benefit entitlement.
- Taking in a lodger FAQ's