What is bedroom tax and who is affected by it?

If your home is considered to be ‘too large’ for your needs you may find your benefits, such as universal credit or housing benefit, being reduced. This is what is sometimes referred to as ‘bedroom tax’ or ‘the under-occupation penalty’.

This may affect you if you are claiming benefits and your property is classed as having a ‘spare’ bedroom.

What can I do if I cannot afford the reduction?

If you are struggling to pay your rent because your property is ‘too large’ then there are options to find more suitable accommodation. Please go to ‘find a home’ on our website.

Alternatively, you can apply to your local authority for extra help. Discretionary Housing Payments (DHP) are paid by local authorities to help those who are struggling to pay their rent because of bedroom tax or other reasons. You should contact your local authority for more information. These payments are ‘discretionary’ and are paid from a limited budget so there is no guarantee that your local authority will pay.

However, our Money Advice team are here to help and can advise on any claims you may put forward to the DHP. Don’t struggle in silence, get in touch with us and fill the form on our Benefit Advice page.

Are there any exemptions to the bedroom tax?

Yes, some customers may need extra rooms in their home due to a disability or health condition or may require the extra room for a carer.

If your benefit is reduced because of ‘bedroom tax’ you can ask the DWP (if you claim Universal Credit) or your local authority (if you claim Housing Benefit) to review your claim. They can give an exemption to the rules if you need an extra room due to a health condition. Our Money Advice team can advise and help with a claim, just complete the form on our Benefit Advice page.