Lodger Rules to Ease Impact Of Bedroom Tax

Tenants will be able to keep rental income from lodgers without it affecting their benefit entitlement under proposed rule changes. The major impact of the move is that it will help under-occupying tenants pay the bedroom tax. The change was made possible because the government has amended what counts as income in its draft regulations for universal credit.  Currently, claimants must declare income from lodgers. This can affect their entitlement to housing benefit, jobseekers’ allowance and income support.  Under the new regulations, from October 2013 tenants will be able to keep income from lodgers and retain full entitlement to benefit. The room let to a lodger will, however, be classed as a spare room and fall under the bedroom tax, which will be £14 per week on average.  Read more on Inside Housing.