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Income based ESA and severe disabled premium and renting a room out

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2 weeks 5 days ago #290013 by Mooc
"Has anyone faced a similar situation where renting out a spare room affected their benefits, specifically Income-related ESA with severe disability premium and PIP, while being in the support group ESA?

I've been informed that I might lose the severe disability premium if I rent out a room, even though the person renting won't be providing any support and will pay rent. I've heard conflicting information about whether a lodger affects benefits, specifically the £81 severe disability payment, and I wonder if there's any way around this or just needs challenging. Additionally, will renting out affect my council tax benefit? I'm considering using Airbnb instead, but I'm unsure if that's a better option. Any insights or experiences would be greatly appreciated."

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2 weeks 5 days ago #290031 by Gary
Hi Mooc

Welcome to the forum.

You might want to have a look at the following FAQ which explains where everything is; www.benefitsandwork.co.uk/guides-for-claimants/faq/forum.

Renting out your spare room will affect your SDP and your council tax, you will loose the single person discount, 25%.

the SDP became payable from the first day that all three of the following applied.

1. You had an award of ESA and we’re receiving or were entitled to receive Income Related ESA or Pension Credit.

2. You had an award of PIP Daily Living

3. You met the criteria for payment of the SD Premium, namely that you lived alone or were considered to be living alone and no one receives Carers Allowance against your PIP award.

Unless you rent out your to a person in receipt of a qualifing benefit, then you would loose your SDP.

We would advise you to seek help from your local Welfare Rights Organisation; advicelocal.uk ,they will be able to give you precise information.

Gary

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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