What is the bedroom tax?

The bedroom tax means your benefits will usually be reduced by up to 25% if you: 

• are 16 or over and under State Pension ageOpens in a new window
• get the housing element of Universal Credit or Housing Benefit
• rent from a local authority, housing association or registered social landlord, and
• have more bedrooms than you need, usually based on these rules:
  • you’re allowed one bedroom for each person or a couple aged 16 or over 
  • two children are expected to share a bedroom until they turn 10, or until they turn 16 if they’re both boys or girls.

The bedroom tax can also be known as the ‘under-occupation penalty’, ‘removal of the spare room subsidy’ and the ‘social sector size criteria’.

The bedroom tax won’t apply if you’re: 

• Over State Pension ageOpens in a new window (your partner also needs to be over State Pension age if you claim Universal Credit as a couple).
• An approved foster carer with one extra bedroom – if you became a foster carer or fostered a child in the last 12 months. 
• Disabled (or your partner is) and receiving regular overnight care with one extra bedroom.
• a parent of a child unable to share a room due to their disability – if they claim the middle or higher rate of Disability Living Allowance.
• A parent of an adult who lives with you but is sometimes away, either:
  • in the Armed Forces, or
  • as a full-time student.
• Living in temporary accommodation because you were homeless or a victim of domestic abuse.
• A homeowner using shared ownership, so you own part of your home and rent the rest.   

If your spare bedroom is a result of a death in your household, the bedroom tax won’t apply for 52 weeks for Housing Benefit or three months for Universal Credit. 

If you’re affected, your eligible Housing Benefit or housing element of Universal Credit will reduce by:

• 14% if you have one extra bedroom

• 25% if you have two or more extra bedrooms.

For example, if you get £500 a month to help with your housing costs, your benefit will reduce by: 

• £70 a month for one extra bedroom

• £125 a month for two extra bedrooms.

If you don’t agree with your bedroom tax decision, you can submit an appeal. For example, if it’s not been considered that someone in your home needs a carer overnight.

If you get Universal Credit, you’ll need to ask for a mandatory reconsideration first. You can then make an appeal within one month of the date of that decision. See our guide How to appeal a benefits decision for more information.  

If you get Housing Benefit, write to your local council or trust within one month of the date of the decision. See Citizens Advice for help challenging a Housing Benefit decisionOpens in a new window

If you’ve been told your benefits will be reduced due to the bedroom tax, use our Benefits calculator to make sure you’re claiming everything you’re entitled to.  

There are also other things you can do to help, such as applying for discounts on your bills and creating or updating a budget.  

For more information, see our guide Help managing your money if you receive benefits. 

What you can get depends on where you live:  

• In England and Wales, you can ask your local council for a Discretionary Housing PaymentOpens in a new window This is decided on a case-by-case basis and you might not get all the money that you’ve lost from the bedroom tax.

• In Scotland, you can apply for a Discretionary Housing PaymentOpens in a new window Everyone affected by the bedroom tax should get it.

• In Northern Ireland, you’ll receive a top-up payment automatically. This is called a Welfare Supplementary PaymentOpens in a new window

For more step-by-step help, including ways to cut costs and how to apply for grants, see our section Help if you can’t afford your rent.

If you’re considering getting a lodger, you’ll still pay the bedroom tax if you get Universal Credit. But you can earn up to £7,500 in rental income without it affecting your Universal Credit payment. 

If you get Housing Benefit and rent out your spare room, you’ll no longer pay the bedroom tax but your benefits could be reduced due to your new rental income. 

For more help and information, see Rent a Room scheme – how it works and tax rules.

To talk to someone about your own situation, use Advicelocal to find free and impartial advice onlineOpens in a new window or near to where you live.

If you’re worried you’ll miss a payment, or already have, use our Debt advice locator to find free and confidential debt advice online, over the phone or near to where you live.