If you’re claiming Housing Benefit, this will be reduced if you earn more than £20 a week from a lodger. If you provide your lodger with meals, only 50% of your income over £20 is used as the income sum which affects your housing benefit calculation. Having a lodger occupy your spare room does, however, exempt you from the ‘bedroom tax’.
Taking in a lodger does not affect Universal Credit payments. The Citizens Advice Bureau offers more information on taking on a lodger.