How Much is Bedroom Tax?

The Bedroom Tax, officially called the Spare Room Subsidy, is a policy that reduces Housing Benefit or Universal Credit for tenants in social housing with spare bedrooms.

This guide explains how much Bedroom Tax costs, who is affected, exemptions, and how to challenge a decision.

What is the Bedroom Tax?

• The Bedroom Tax reduces housing support for social housing tenants if they have spare bedrooms.

• It applies to people receiving Housing Benefit or Universal Credit.

• The government cuts benefit payments if a tenant is considered to have extra bedrooms.

This policy aims to free up larger homes for families in need.

Bedroom Tax – Number of Bedrooms Allowed

Under Bedroom Tax rules, tenants are only allowed one bedroom per:

• Adult couple

• Single adult (over 16)

• Two children under 16 of the same gender

• Two children under 10 (regardless of gender)

• A disabled person who requires overnight care

If your home has more bedrooms than allowed, your Housing Benefit or Universal Credit will be reduced.

Bedroom Tax: Rooms Allowed with a Qualifying Disability Benefit

• If a disabled tenant or child needs a separate bedroom for medical reasons, they may be exempt.

• A carer who stays overnight is allowed a spare room.

• You may need to provide medical evidence to prove a disability exemption.

Contact your local council if you think you qualify for an exemption.

Who is Affected by the Bedroom Tax?

• Social housing tenants who receive Housing Benefit or Universal Credit.

• People in England, Scotland, and Wales (Northern Ireland has different rules).

• Tenants with spare bedrooms that are not justified under the rules.

If you rent privately, the Bedroom Tax does not apply.

Who is Exempt from the Bedroom Tax?

• Pensioners (those receiving State Pension Credit).

• Tenants in supported or temporary housing.

• People with severely disabled children or partners needing a separate bedroom.

• Foster carers between placements (for up to 52 weeks).

• People with a recently bereaved partner (exempt for 12 months).

If you believe you should be exempt, contact your local council or Citizens Advice.

How Much is Bedroom Tax?

The Bedroom Tax reduces your Housing Benefit or Universal Credit by:

• 14% for one spare bedroom

• 25% for two or more spare bedrooms

Example Bedroom Tax Deductions

Rent Per Month £500

• Reduction (1 Spare Room -14%) £70 less in benefits

• Reduction (2+ Spare Rooms -25%) £125 less in benefits

Rent Per Month £600

• Reduction (1 Spare Room -14%) £84 less in benefits

• Reduction (2+ Spare Rooms -25%) £150 less in benefits

Rent Per Month £800

• Reduction (1 Spare Room -14%) £112 less in benefits

• Reduction (2+ Spare Rooms -25%) £200 less in benefits

Tenants must cover the shortfall themselves or apply for discretionary housing support.

How to Challenge a Bedroom Tax Decision

• Step 1: Check the decision – Review your Housing Benefit or Universal Credit breakdown.

• Step 2: Contact your council – If you think the Bedroom Tax has been wrongly applied, ask for a review.

• Step 3: Submit an appeal – Provide medical evidence or proof of exemption if applicable.

• Step 4: Seek legal advice – Organisations like Citizens Advice can help you challenge unfair deductions.

If your challenge is unsuccessful, you may still qualify for a Discretionary Housing Payment (DHP) to help cover costs.

Final Thoughts

• Bedroom Tax applies to social housing tenants with spare rooms.

• It reduces Housing Benefit by 14% (one spare room) or 25% (two or more spare rooms).

• Pensioners, disabled tenants, foster carers, and recently bereaved tenants may be exempt.

• You can challenge a Bedroom Tax decision if you think it is incorrect.

To check if you are eligible for exemptions, visit GOV.UK’s Housing Benefit page.