Under-occupation also known as 'Bedroom Tax' was introduced in April 2013
Any working-age household deemed to have one or more spare bedrooms within their home will see a reduction in their Housing Benefit.
If you have one spare bedroom your benefit will be cut by 14% of the weekly rent. If you have two or more spare rooms then your benefit will be cut by 25% of the weekly rent.
NB: If you get help with part of the rent, the percentage cut refers to the rent, NOT to the amount of your benefit. The number of bedrooms in your property will be defined by your landlord in your tenancy agreement.
What is a spare bedroom?
The Government allows one bedroom for each person or couple living as part of the household, with the following exceptions:
- Children under 16 years old of same gender expected to share.
- Children under 10 years old expected to share regardless of gender.
- Disabled tenant or partner who needs non-resident overnight carer will be allowed an extra room.
If you have more rooms than this you will see a reduction in your Housing Benefit.
How we can help you...
- We can help tenants who want to downsize to a smaller property.
- We may be able to provide financial help to assist with the costs of the move.
We can provide budgeting advice to help those unable to move to ensure they can meet their housing costs.
It is possible to take in a lodger or boarder (this requires permission from Yarlington). You would also need to let the Department for Work and Pensions and Housing Benefit section know of the change to your income as it is likely to affect some of the other benefits you may receive.
Want to discuss your situation?
Contact our friendly Financial Responsibility Team:
T: 01935 404050