Bedroom Tax - Under Occupancy
Bedroom Tax (in the UK) is an informal name for a measure introduced in the Welfare Reform Act 2012, by which the amount of housing benefit paid to a claimant is reduced if the property they are renting is judged to have more bedrooms than necessary.
Housing benefit or universal credit are benefits you can claim to help you pay your rent. However the amount you receive will be reduced if you are a council or housing association tenant, under pension credit age, and under-occupying your home. This is commonly referred to as the ‘bedroom tax’ or the ‘under-occupancy charge’.
How much will my benefit be reduced by?
If you claim housing benefit this will be administered by the local authority. For Universal credit claimants it will be the DWP. The under occupancy, bedroom tax will be applied to your eligible rent. This means, the amount your rent actually is after any extra charges such as water costs have been deducted (a charge not covered by your benefit).
Bedroom tax will not apply to you if you have reached the qualifying age for pension credit. It makes no difference if you are not actually receiving it, just that you meet the correct age.