Lodger and reduced UC

[blossmgirl]

Hi, I've just had a lodger move in and start paying rent from 1st September.

I informed UC under 'children and people who live with me' having previously checked that this was a.ok and b.the process - all good.

I have my latest statement today and my UC housing element has been reduced by £85.73 because '1 adult who lives with you who is expected to pay towards the rent'

I took in a lodger because of not making ends meet! I checked again and again that my UC would not be reduced as a consequence. I've again googled this and cannot find any reference anywhere that would have given me the heads up when planning how much to charge. Now I'm in a dilemma about if it's even worth it, and am £85 down for the month ahead.

Is there anyone here who can point me to the place where info about this can be found?

Thank you

My understanding is:

1. The rent you charge your lodger doesn't count as additional income, and shouldn't reduce your Universal Credit; but

1. As your lodger covers the rent of their "part" of the property, you aren't entitled to housing benefit and so the housing element will be reduced accordingly.

I'm afraid the adjustment you've received appears to be correct.

www.citizensadvice.org.uk/housing/renting-a-home/lodging-index/taking-in-a-lodger-what-you-need-to-think-about-first/.

I'm kind of in the same boat. When my daughter turns 20 next month I'll loose the same amount. I've already lost the 200 odd Chile element and I'll loose the child benefit for her too. Not sure how ill cope:(

@blossmgirl

It sounds as if UC is treating your lodger as a "non-dependent" and that's why they've made the deduction. It's wrong, they shouldnt have. I advise you to challenge the decision:
https://www.citizensadvice.org.uk/benefits/universal-credit/problems-with-your-payment/challenging-a-universal-credit-decision-mandatory-consideration/

If you'd like any help or advice on it, contact your local Citizens Advice:
https://www.citizensadvice.org.uk/about-us/contact-us/contact-us/contact-us/#h-find-your-nearest-citizens-advice

"People who pay rent to you as part of a formal arrangement to live in your home are not non-dependants."
https://www.entitledto.co.uk/help/non-dependants

1. is correct but 2. Is wrong. client should still get the housing element in full.

Incorrect advice again, the income from a lodger is disregarded however they do not get a "bedroom" allowance so will not increase a person's Local Housing Allowance rate if applicable nor prevent a spare room subsidy being applied if relevant. So not right to say that the housing element will be payable in full as the OP presumably has a spare room for a lodger to occupy and hence will not be receiving full Housing Costs Element currently

Huge thank you!

This is amazing on a Saturday evening, and enormously appreciated, and has settled my mind.

I'm so sorry that I'm not alone, big kind thoughts to anyone struggling to make end meet.

How telling that I couldn't use 'fairness' or 'my ability to survive' as a way of judging if system is being applied correctly.

Thankfully, yes , it does look incorrect -

The change of circumstances was backed up with a journal entry that clarified the new member of the house is a rent paying lodger and from when. He is not a non-dependent.

To confirm, this is the housing element of UC, not housing benefit - thanks for the post confirming that they are treated differently.

Thank you for the replies and links to more detailed information, this is exactly what I'd remembered reading, and what UC had confirmed in my journal months ago.

Also, I didn't have a spare room. I've given up my bedroom to rent it out. That was a perfectly reasonable assumption that I had a spare room, but I didn't/ don't.

I have a call booked with my work coach on Tuesday, so I'll appeal in my journal in the morning and bring it up in the call.

You're made a lot of assumptions; firstly that the OP has a spare room; secondly that the OP is a council/HA tenant and not a private tenant; thirdly that a lodger moving in would result in a deduction to the housing element. No it wouldn't. On UC, if you're a council/HA tenant with a spare room, you'll pay the "bedroom tax" whether a lodger moves in or not, and if you're a private tenant, you will get the same LHA rate whether a lodger moves in or not.

OP, have you moved into your living room or dining room or something?

If you are really struggling to make ends meet meet, do contact your local citizens advice. They can advise about discounted rates and other things you might not know about.

Do you know about the Household Support Fund and have you applied?

@AnotherEmma thank you, I'll follow your advice. We have a wonderful community cafe where I live and they've directed me to sources of support and I've been helped out by some one-off funds. You're correct in that I've moved into various spaces in the house and sleep on the sofa. However, typing it like that makes it sound a bit dramatic. My lodger is my best friend and in my career I work with traumatised children so I'm adaptable and creative and am well-honed and capable of doing well here and now and do not fixed to an idea of how 'it' should be. But you kindly call me out on a trait which is trying to do it all self-resourced - so yes I'll contact CA and share my situation. Big appreciation.

Hi I've had a journal reply and I've just been advised that I declared our lodger as a non-dependant when I added him to the 'children and people who live with you tab'

I've been advised to remove him as a non-dependant but have not been guided as to how?

Please may I ask - does anyone know how?

Do I remove him altogether to do this?

Or is there an option to change his status within the tab? I progressed within the change tab but backed out as the non-dependant question didn't come up and I didn't want to make a mistake again.

Hope that makes sense! Big thank you

Just been advised in my journal to remove him from my claim completely, which I've done.

Completely the opposite advice to what I was told to do in my journal when I asked about how to declare having a lodger!!

Thanks Mumsnet for being there anyway

Hope that sorts it, OP!

Brilliant news. My understanding was clearly twaddle - I'm sorry about that. Glad others gave you better advice and helped sort the issue.

Happy to share that the adjustment has gone through and the £85 is being paid as an additional payment this week. That makes it only 3 days to be sorted. Thank you all kindly for the support, especially when the error first arrived

Wow, that was quick! So glad it's sorted

There should be no non dependent deduction until she turns 21. But yes if she is non dependent you she will be expected to pay board. With the old system / housing benefit it would be 18 so Uc actually more generous in that respect.

The child element and child benefit stop and that's the big dip in benefit income that poster is referring to.

On UC there's a non-dependent deduction for 21+ and on HB I'm pretty sure it's 25+ (not 18).

She says she's already lost the child element.

You loose the child element of universal credit at the end of the August after they turn 19. Then I'll loose child benefit when she turns 20. And then there's that £85 towards rent thing... Not sure when that happens. She's asd and had issues at school so she's had to go to college to get qualifications. So its non advanced qualifications she's doing