The bedroom tax: how it works and who it affects

The bedroom tax could mean you receive less in Housing Benefit – which may make it harder to cover your rent. Here’s everything you need to know about how it works, who it affects, and what you can do if you’re struggling.

What is the bedroom tax?

The bedroom tax is a reduction in your Housing Benefit if you have rooms that are considered to be ‘spare’.

This means you will need to make up the difference between the benefit for your housing costs and your rent using other funds.

The Bedroom Tax only affects people who are renting council or Housing association properties.

How much is the reduction?

It depends on the number of spare bedrooms you have.

If you have 1 spare bedroom, 14% of your Housing Benefit is deducted.

If you have 2 or more spare bedrooms, the deduction increases to 25% of your Housing Benefit.

What counts as a bedroom?

The legislation doesn’t define what counts as a ‘spare bedroom’  in terms of size or room use.  A home office could count as a spare bedroom, for example.

It’s up to the landlord to state how many bedrooms are in the property on the tenancy agreement.

Who is affected by the bedroom tax?

The rules allow a bedroom for each of the following:

• an adult couple
• any other adult aged 16 or over
• 2 children of the same sex under 16
• 2 children under 10
• any other child.
• a non-resident carer(s) who regularly provides care for someone in the household.

For example, if you live with your partner and your adult son, you are treated as if you need two bedrooms as a household. If you are renting a three bedroom house, the government treats you as if you have one spare room. Your Housing Benefit or Universal Credit housing costs will be reduced by 14%.

Couples are expected to share a bedroom. If you and your partner sleep in separate bedrooms, one of these rooms is considered to be spare. If you are unable to share a bedroom with your partner because of a health condition or disability, you can be allocated an extra bedroom as long as you also receive a qualifying disability benefit, see below.

People who have reached State Pension age aren’t affected by the bedroom tax – but if you’re in a mixed-age couple (where one of you is below State Pension age) and you have a spare room, you may be affected.

Are there any exemptions or exceptions?

A further bedroom is allocated for certain people and situations:

• couples who cannot reasonably share a bedroom because of a health condition or disability. At least one partner must receive:
  • Attendance Allowance
  • middle or high rate care component of Disability Living Allowance
  • the daily living component of Personal Independence Payment or
  • Armed Forces Independence Payment
• a child who cannot reasonably share a bedroom because of a health condition or disability and who receives middle or high rate care component of Disability Living Allowance. 

A foster parent If somebody in your household dies, it could mean that your house is now considered too big for you – but your Housing Benefit won’t be reduced for a year after their death. Universal Credit continues at the same rate for a further two months after the month in which the person dies.

What can I do if I’m affected?

If you’re affected by the bedroom tax, you might be worried about not being able to pay your rent or other expenses. It can be a stressful situation, but there are options you can try.

Apply for a Discretionary Housing Payment (DHP)

You can apply for a DHP from your local council if you’re affected by the bedroom tax and you can’t pay your rent or move to a smaller property.

DHPs are only a temporary measure – they can’t be granted on an ongoing basis. However, the length of time you can receive DHP is decided case-by-case. 

Consider downsizing

If possible, you could consider downsizing to a house with fewer rooms, so that your rent can be covered entirely by your Housing Benefit.

However, this might not be possible if your current property has been adapted to accommodate a disability.

Take in a lodger

If you have a room that isn’t being used by people who currently live in the house – including as a bedroom for an overnight carer – you could consider taking in a lodger to help cover the cost of your rent.

Before you do, you’d need to discuss it with your landlord. Your Council Tax bill can be affected if you are no longer living alone.

If you do decide to take in a lodger, there are some safety considerations you may want to think about. For example, it might be safer to take in someone you know, rather than a stranger.

Challenge the decision

You can challenge the bedroom tax if you think it’s been applied incorrectly.  

To do this, you need to submit an appeal to the council within a month of the decision being made.  As part of the appeal, you need to tell the council why you’re appealing and submit any evidence you have.