Bedroom Tax Key Facts
- 1 spare bedroom: 14% reduction in Housing Benefit
- 2+ spare bedrooms: 25% reduction in Housing Benefit
- Only applies to social housing (council/housing association)
- Pensioners are exempt
- Foster carers and disabled overnight-care claimants may qualify for extra bedrooms
Bedroom Tax Calculator
Only applies to social housing tenants on Housing Benefit. Pensioners are exempt. Foster carers and disabled claimants requiring overnight care may qualify for extra bedrooms. Results are indicative.
What is the Bedroom Tax?
The bedroom tax, formally known as the under-occupancy charge, is a reduction in Housing Benefit for social housing tenants who have more bedrooms in their home than the government deems necessary for their household size. It was introduced in April 2013 and affects working-age Housing Benefit claimants living in council and housing association properties.
The reduction is applied to the eligible rent used in the Housing Benefit calculation — not to the full rent amount. For one spare bedroom, Housing Benefit is reduced by 14%. For two or more spare bedrooms, the reduction is 25%. These percentages remain unchanged from when the policy was introduced.
The bedroom tax is designed to encourage downsizing in social housing, freeing up larger properties for families with children. However, in many areas of the country there is a shortage of smaller social housing properties, meaning affected tenants cannot easily move to avoid the charge.
Occupancy Rules: How Spare Bedrooms are Counted
| Household situation | Bedroom entitlement |
|---|---|
| Adult couple | 1 bedroom (shared) |
| Single adult (16+) | 1 bedroom each |
| Children under 10 (any gender) | 1 bedroom per 2 children |
| Children 10-15, same gender | 1 bedroom per 2 children |
| Children 10-15, different genders | 1 bedroom each |
| Foster carer (approved) | +1 extra bedroom |
| Disabled claimant needing overnight carer | +1 extra bedroom |
Exemptions and Special Cases
Pensioners are completely exempt from the bedroom tax. Once a claimant reaches State Pension age, the under-occupancy rules do not apply. For mixed-age couples, the older partner's age may affect eligibility depending on benefit type and transitional rules.
Disabled people who require an overnight non-resident carer are entitled to an extra bedroom in their occupancy calculation. This exemption must be applied for and formally recognised in the Housing Benefit assessment. Disabled people who share a bedroom with a partner but cannot reasonably share due to disability may also be entitled to separate bedroom allowances.
Foster carers approved by their local authority are entitled to one extra bedroom in the occupancy calculation. This applies whether or not a foster child is currently placed with them, ensuring the room kept for foster placements is not counted as spare.
Adult children away at university or in the armed forces may retain their bedroom entitlement in some circumstances, but this depends on individual assessment and whether they intend to return to the property.
Frequently Asked Questions
What is the bedroom tax?
The bedroom tax (under-occupancy charge) reduces Housing Benefit by 14% for one spare bedroom or 25% for two or more spare bedrooms. It applies to working-age social housing tenants only.
Who is exempt from the bedroom tax?
Pensioners who have reached State Pension age are fully exempt. Disabled people with certain overnight care needs, foster carers, and some other vulnerable groups may qualify for extra bedroom allowances.
Does the bedroom tax apply to private renters?
No. It only applies to social housing tenants. Private renters are subject to LHA rules which limit the housing benefit rate based on bedroom entitlement, but the 14%/25% deduction mechanism is different.
How much is the bedroom tax for 1 spare bedroom?
14% of your eligible Housing Benefit. On £100/week Housing Benefit, that is £14/week or £728 per year.
How much is the bedroom tax for 2 spare bedrooms?
25% of your eligible Housing Benefit. On £100/week Housing Benefit, that is £25/week or £1,300 per year.
Can foster carers get an extra bedroom?
Yes. Approved foster carers are entitled to one extra bedroom in their occupancy calculation, whether or not a foster child is currently placed with them.
Can I appeal the bedroom tax?
Yes. Request a mandatory reconsideration from your council first, then appeal to an independent tribunal if the reconsideration is unsuccessful.
Is Discretionary Housing Payment available?
Yes. Local councils can award DHP to help cover the shortfall in exceptional circumstances, particularly for disabled people or those who cannot find a suitable smaller property.
Does bedroom tax apply to Universal Credit housing costs?
Yes. The same 14%/25% under-occupancy deductions apply to the housing cost element of Universal Credit for social housing tenants.
Are children at university counted in the occupancy calculation?
Students living away at university are generally not counted in the occupancy assessment, which can increase the number of spare bedrooms. Individual assessment by the council applies.
What if no smaller property is available to move to?
The bedroom tax still applies even if no suitable smaller property is available. A DHP may help cover short-term costs while waiting for alternative accommodation.
When was the bedroom tax introduced?
The under-occupancy charge was introduced in April 2013 as part of the Welfare Reform Act 2012.