Social Rented Housing – Parliamentary Written Answer

Stephen Timms: To ask the Secretary of State for Work and Pensions what assessment he has made of the ability of tenants in the socially rented sector, under the terms of their tenancy conditions, to take in a lodger in order to reduce a drop in their income resulting from the under-occupancy penalty.

Steve Webb: The ability of tenants to take in a lodger is dependant upon the particular conditions of individual tenancy agreements. However, many local authority tenants and some housing associations have an automatic right to take in lodgers. We anticipate that many other social sector tenants will be granted such a right following a request to their landlord.

Stephen Timms: To ask the Secretary of State for Work and Pensions what assessment he has made of the consequences for the household insurance policies of tenants in the socially rented sector who take in a lodger in order to reduce the drop in their income through the application of the under occupancy penalty.

Steve Webb: An assessment has not been undertaken. We are changing the rules in universal credit so that the income received from taking in a lodger does not reduce a claimant's benefit. This will increase the options for those who are affected by the under-occupation reduction though the Government accept that, for a variety of reasons, this solution will not be appropriate in all cases.