Under occupation charge
AKA the bedroom tax
The under occupation charge, also known as bedroom tax, can affect some working age tenants in social housing by reducing housing benefit or universal credit if their home is assessed as having more bedrooms than they need. Support and advice are available to help you understand how this may affect you and what options you have.
If you live in social housing, or applying for social housing, you will be assessed by your local authority to establish the size of accommodation you reasonably need.
If you are deemed to be under-occupying your home, your housing benefit or universal credit claim is reduced depending on the number of bedrooms you under-occupy by.
The reduction is 14% for one spare bedroom and 25% for two or more spare bedrooms.
Bedroom tax calculator
Check how much you would need to cover for 14% or 25% by using the Citizens Advice bedroom tax calculator. You can also see if you have a ‘spare’ bedroom according to current housing benefit and universal credit regulations. The calculator will also show you changes to your housing benefit or universal credit claim.
Will I be affected by the bedroom tax?
You will be affected by the bedroom tax if:
- you are of working age and have one or more spare bedrooms
You will NOT be affected by the bedroom tax if:
- you are a single person over state pension age – check your state retirement age here.
- you live in a one-bedroom home or bedsit
- you have a shared ownership property
- you are of state retirement age and live with a spouse or partner under state retirement age
- a member of your household has disabilities and needs a bedroom to themselves
- you need a spare room for overnight care if you or a member of your household has a disability
- you are an approved foster carer
If you think you should not be affected by the under occupation charge, please check the following for additional information:
Ask yourself if you can make up the difference?
Check you are receiving everything you are entitled to. If you want to stay in your home and think you can manage, you should make plans to put aside the extra money you will need. For example, a weekly rent of £100 will have £14 per week reduced for one spare room. If you have two spare bedrooms or more, a reduction of 25% applied, this is £25 per week.
Consider your options and seek advice
Everyone's situation is different. If you want to consider moving to a smaller property by bidding or a mutual exchange, contact your housing officer, look at Home Swapper or get registered on Devon Home Choice or Cornwall Homechoice.
If you have any concerns about the bedroom tax, please contact us to discuss them.