Who is exempt from paying the bedroom tax?

The bedroom tax is a reduction in the housing element of universal credit (UC), or housing benefit. The reduction is based on how many spare bedrooms you have.

If you have one spare bedroom, you’ll get 14% less money towards your rent. If you have more than one spare bedroom, you’ll get 25% less.

Example

If you get £500 per month towards your rent, your benefits will be cut by:

• £70 for one spare bedroom
• £125 for two or more spare bedrooms

The bedroom tax only applies if you:

• rent from the council or a housing association
• have more bedrooms than you need
• are of working age
• get the housing element of UC or housing benefit

Certain people are expected to share a bedroom:

• couples
• two children under the age of 10
• two children under the age of 16 of the same sex

Some people are allowed their own bedroom:

• anyone over the age of 16
• a lodger – but only if you get housing benefit, not UC
• children who need their own space due to a severe disability

Certain people are exempt from the bedroom tax:

Pensioners

Most people over state pension age aren’t affected by the bedroom tax. But if you claim universal credit as a couple, you’ll only be exempt if you’re both over the state pension age. 

Foster carers

Approved foster carers are allowed an extra bedroom, even between placements. You must have fostered a child or become an approved foster carer in the last year for this to apply.

You have a grown-up child in the army

You’re allowed to keep a bedroom free for a grown-up child who lives at home and is in the army even when they’re deployed.

Your grown-up child is a student

You’re allowed to keep a bedroom free for a grown-up child who is away at university, as long as they return home at some point within six months if you’re on UC, and within 12 months if you’re getting housing benefit.

You live in temporary housing

If you’re in temporary accommodation, it’s unlikely you’ll be subject to the bedroom tax. 

There’s been a death in the household

If you have a spare bedroom because of a death in your household, you’ll have three months before you’re affected by the bedroom tax if you’re getting UC. This increases to a year if you’re getting housing benefit. 

Shared ownership

If you bought your home under a shared-ownership scheme and pay rent, you won’t be affected by the bedroom tax.

Domestic abuse survivors

If you’re living in a domestic abuse refuge, you’ll be exempt from the bedroom tax. You’ll just need to get written evidence from the police, a social worker or another professional organisation to say you’re a survivor of domestic abuse. 

People with disabilities

You’re allowed an extra bedroom if:

• you have a severely disabled child who can’t share a room because of their disability and gets the middle or higher rate of either element of disability living allowance
• a carer who doesn’t live with you regularly stays over to look after you or your partner

You’re allowed to appeal against a bedroom tax decision. How you go about this depends on which benefit you get:

Universal credit

Ask the Department for Work and Pensions (DWP) for mandatory reconsideration through your journal or over the phone. This just means you’re asking them to look at your case again.

Officially, you only have a month to do this, so it’s best to act quickly.  They may still agree to review your case if your request is late, providing you have a good reason for missing the deadline. 

When you ask for mandatory reconsideration, explain why you disagree with the original decision.  If DWP don’t change their mind, you can appeal to an independent tribunal within a month of the outcome of mandatory reconsideration.

Housing benefit

Write to your local council to appeal within one month of the decision date.

You have a few options worth trying if you’re struggling to make ends meet because of the bedroom tax.

Talk to your landlord

If you’re struggling to find the money to pay your rent, talk to your council or housing association to see if there’s any financial support available or the option of moving to a smaller home. 

Look into discretionary housing payments

If you can’t afford your rent because of the bedroom tax, you may be able to apply for a discretionary housing payment (DHP).  DHPs are available to people whose housing benefits don’t cover their full rent and who are struggling to make up the shortfall.

Apply through your council. They’ll decide:

• whether to give you a DHP
• how much you’ll get
• how long you’ll get the payment for

Draw up a budget

It can be helpful to create a household budget of your income and outgoings to see if you can still make ends meet after any cuts to your benefits.

It’s also worth seeing if there are other ways to bring in a little extra cash – don’t forget to check if you’re getting all the benefits you’re entitled to.

Rent out your spare room

You may be able to make up your rent shortfall by renting out your spare room. How this will affect your financial situation will depend on which benefit you get.

Renting out a room if you get universal credit

If you’re on universal credit and you get a lodger, you’ll still pay the bedroom tax. But you can make up to £7,500 in rent without it affecting your universal credit payment.

Renting out a room if you get housing benefit

If you get housing benefit, a lodger’s room isn’t classed as a spare bedroom so you won’t be affected by the bedroom tax. But your benefits could be reduced if you’re getting paid more than £20 a week in rent.