Sample Lodger Agreement

Why might it be of interest?

If your young person is living at home, in receipt of benefits and a social care package they are likely to have to make a contribution towards the cost of their care package.

While the Local Authority probably won’t be happy and may tell you that rent or a contribution towards the household is not an allowable expense – they are wrong and it is!

However, this is not a notional amount – the young person must be paying the amount agreed and you will need to be able to show the money being paid from their account into yours.

The young person’s contribution to their social care package can be reduced by demonstrating that they have allowable expenses – and the rent or contribution towards the household is an allowable expense.  Their rent contribution can be included in the Financial Assessment as part of their care act assessment or it can be added as a Disability Related Expense.  Either way this amount should be added to the Minimum Income Guarantee that applies to the young person’s situation plus any other Disability Related Expenses.

All of these things added together make up a figure that the young person is allowed to keep from their benefits before they make a contribution towards their social care package, thus reducing the amount they pay to the Local Authority.

You might like to have a look at these documents for further explanations:

Minimum Income Guarantee:  https://ruils.co.uk/article/2025-2026-benefit-and-minimum-income-guarantee-rates/

Disability Related Expenses:  https://ruils.co.uk/article/dre-costs-to-offset-against-contribution/

Why not a tenancy agreement?

A tenancy agreement is a more formal agreement and would make you a landlord.  You don’t need to be a landlord to rent a room.  Your young person would have to abide by the rules in the tenancy agreement – and you would have to take action if they didn’t.  If you are already a landlord you might consider this option but do consider that you would have to treat your young person in the same way as any other tenant.

Sample Lodger Agreement

Date: [insert today’s date]

This is an agreement between:

Parent or carer (the homeowner)

Name: [your full name]
Address: [your home address]

 and

Adult child (the lodger)

Name: [their full name]
Date of birth: [their date of birth]

What we are agreeing:

1. [name] will live at home with their family at the address above and will have a bedroom of their own.
2. They will also share the kitchen, bathroom and living areas with the rest of the household.
3. They will pay £[amount] each week from their own money or benefits. This is a contribution towards the cost of living at home – including food, electricity, gas, water, and general household bills.
4. This money will be paid by [how it will be paid – eg standing order, bank transfer, or cash].
5. We agree that this arrangement helps [name] to live as independently as possible and to share the costs of running the home.
6. This agreement will continue unless we both agree to change it, or either person wants to end it and gives reasonable notice.

Signed

Parent/ Carer: ……………………………………………..   Date: ………………………

Adult child (or representative): …………………………..   Date: ………………………