Severe mental impairment exemption for council tax and a lodger

Hi, I have a client who is in receipt of council tax reduction and is waiting on the SMI exemption to be applied.  As they are struggling financially, they’ve decided to take in a lodger (approved by private landlord).  The client receives PIP, UC (LCWRA) and the lodger is working.

The client will lose her 25% SPD but what happens to the exemption? I can only find info on when there is more than 2 adults + the SMI or when the other adults are carers or students which doesn’t apply.

Thanks!

I believe the 25% reduction will continue.
Client is disregarded via SMI and there is only one other person in the property who is not disregarded.

Thanks for confirming! Will the client’s CTR then cover the remainder or will the lodger need to pay the difference?

Presumably client is still the liable party as they are the tenant so still eligible to claim but as to how much they will be entitled to, this will depend on the LA’s CTR scheme. Although the rental income is disregarded from UC it may not be for CTR purposes.

Thank you, have a lovely evening.