Get flatmate/lodger? Serious illness etc.

[BloomedAgain]

I've had a difficult health diagnosis and can't work at present, hopefully I'll be able to go parttime for a while. 'Longer' term is unknown. I've been in a daze but need to sort things now. I'm single and in a rented two bed flat and will be struggling to pay the rent soon. I'm looking into options. My landlord is ok with me advertising for a 'rent a room' lodger. Alternatively I could change the lease and find a flatmate though my landlord is slightly less keen due to a dislike of paperwork. Does anyone know if the different options would have an effect on housing benefit etc and other benefits? I had a not very useful chat with CAB. I know this has become a big deal for me as a focus away from the illness but I love my home so want to find a way to stay living there.

You would tell HB and they would deduct the amount of money/benefit you get by the amount of rent, it will also affect council tax, because the other person may not get council tax relief so you would have to make sure the lodger knew they have to make up the council tax on top of their rent. You’d also on top of that lose your 25% discount

But if your sensible you advertise the room at a cheap rent and excluding bills - then halves on every bill

The room can’t be too cheap though otherwise it’ll look dodgy

Thank you. I'm not claiming HB yet. I knew I'd lose my council tax reduction. I wonder if it's better to just change tenancy so that we're both flatmates paying my landlord individually rather than a flatmate paying me?
It's a big commercial area so also wonder about the rent a room scheme.

Bloomedagain / I doubt anywhere does New claims for HB and you’ll need to claim UC

If you do the rent a room scheme just tell UC that part of your rent is being paid by lodger and they will take that into account

Just don’t include bills in with the rent

I doubt your landlord wants to rent you half the house etc and have the hassle and money to rent to someone else so wants you to do that bit

Yes IvyKaty. Thank you for that. I've never claimed anything before but it does look like it'll be UC.

UC actually disregards money you receive from a lodger. Your rent will be limited to the relevant local housing allowance. I would also look into putting a sick note in with UC, and considering PIP.

Rebail is correct about the rental income from lodgers not being counted as income by UC, which means it’s better you take a sub lodger than your llord changes the tenancy

Thank you rebail and IvyKaty. Really useful. Does the rule on lodger income apply regardless of whether it's done under the rent a room scheme or a more conventional way?

Renting a room is surely - renting a room without food and it is only called the rent a room, as such by the government When it’s under the tax threshold (£7k per year approximately)

You can get a lodger on spare rooms dot com but legally you must have a gas certificate- which you should have a copy of as you are also a tenant

Thank you. It'll be under that rate.