Glossary · UK
What is Bedroom Tax (Under-Occupancy Charge)?
A reduction to Housing Benefit or the Universal Credit housing element for working-age social tenants assessed as having more bedrooms than their household needs.
Full Definition
The bedroom tax, formally called the removal of the spare room subsidy or the under-occupancy charge, is a reduction applied to the eligible rent used to calculate Housing Benefit or the housing element of Universal Credit for working-age social housing tenants (council or housing association) who are assessed as having more bedrooms than the size criteria allow for their household. The reduction is 14% of eligible rent for one spare bedroom and 25% for two or more spare bedrooms. Bedroom entitlement rules allow one bedroom per adult couple, per other adult aged 16 or over, per two children of the same sex under 16, per two children under 10 regardless of sex, and one for any other child, plus an extra bedroom in defined circumstances such as an overnight carer, a disabled child unable to share, or approved foster carers. The bedroom tax does not apply to pensioners, and various exemptions and Discretionary Housing Payments can mitigate its effect for particular households, such as those in specially adapted properties or areas with no suitable smaller accommodation available.