Extra Bedrooms: Understanding Uk Charging Policies

If you're renting in the UK, the number of bedrooms you have can impact your benefits. This is known as the bedroom tax, and it applies if you're renting from a local council or housing association and are of working age. The rules don't apply if you rent privately. If you're deemed to have a spare bedroom, your Housing Benefit or Universal Credit might be reduced, and you'll have to pay more of your rent from other income.

Private renters have extra rules

Private renters have distinct rules that differ from those who rent from a council or housing association. Here are the key points to note for private renters:

• Limit on claimable bedrooms: Private renters can only claim for up to four bedrooms, even if they meet the eligibility criteria for more. This means that regardless of the number of occupants or specific circumstances, there is a cap on the number of bedrooms that can be included in benefit calculations for private renters.
• Local Housing Allowance restriction: There is a limit on the amount of Housing Benefit available to private renters, known as the Local Housing Allowance. This limit is set by the local authority and may not fully cover the rent, particularly in areas with high private rents.
• Impact on benefits: Renting from a private landlord can impact benefits differently compared to council or housing association tenants. For Housing Benefit, the first £20 per week is disregarded, but half of the additional income from rent will likely be treated as income, potentially reducing other benefits. For Universal Credit, the lodger's rent is fully disregarded up to £7,500 per year, but the private renter will still be considered to have a spare bedroom, leading to a reduction in the housing element of their Universal Credit.
• Contract and landlord considerations: Private renters should carefully review their contract and communicate with their landlord. All rooms described as bedrooms in the contract will typically be counted, even if they are small or used for other purposes. The landlord's definition of the number of bedrooms in the property will usually be followed by the Department of Work and Pensions (DWP).
• Discretionary Housing Payments (DHPs): If housing benefits are reduced due to circumstances like the bedroom tax, private renters can still apply for DHPs from their local authority to help cover the difference in rent. These payments can be made as a single payment or a regular monthly sum, depending on the local authority's decision.

Exemptions (people who are allowed their own bedroom)

In the UK, the "bedroom tax" is a welfare policy that affects tenants living in public housing, also known as council or social housing. If you have more bedrooms than the rules say you need, your Housing Benefit or Universal Credit might be reduced. This reduction is referred to as the "under-occupancy charge" or the "removal of the spare room subsidy". However, there are several exemptions where individuals are allowed their own bedroom without facing this penalty.

Firstly, if you or your partner are over the qualifying age for State Pension Credit, you are exempt from the bedroom tax. However, under Universal Credit, both partners need to be over the State Pension Credit age to be exempt. Additionally, if you are an approved foster carer, you are allowed an extra bedroom, even if you are between placements, as long as you have fostered a child or become an approved foster carer in the past 12 months.

Furthermore, if you have an adult child living at home who is in the Armed Forces, they are considered to be continuing to live at home even when deployed, and their bedroom is not considered spare. Similarly, if you have an adult child who is a student and your home is their primary residence, their bedroom is not considered spare as long as they return home at least once a year. However, under Universal Credit, this period is reduced to six months.

If you or your partner receive regular overnight care from a carer or team of carers, you are allowed an additional bedroom. This also applies if you have a severely disabled child who receives the middle or higher rate of either component of Disability Living Allowance and is unable to share a room due to their disability.

Moreover, if you are living in certain types of temporary accommodation, such as supported or sheltered housing, or if you bought your home under shared ownership and pay rent to someone for their share, you may be exempt from the bedroom tax. Additionally, if you are living in a place to support victims of domestic abuse and can provide written evidence from a professional organisation, you may also be exempt.

If someone moves out

• Legal age to move out: In the UK, a young person can legally leave home when they turn 16. However, parents remain legally responsible for their child's safety and well-being until they reach the age of 18. This includes ensuring they have suitable accommodation.
• Housing Benefit implications: If the person who moved out was contributing to the rent, your Housing Benefit might be affected. The 'bedroom tax' or 'under-occupancy charge' applies if you have more bedrooms than the rules state you need. This typically affects those renting from a council or housing association. If you're renting from a private landlord or letting agent, these rules don't apply.
• Update your tenancy agreement: If the person who moved out was on the tenancy agreement, you'll need to update it. Contact your landlord or housing association to inform them of the change in circumstances.
• Financial considerations: If the person who moved out was contributing financially, you may need to adjust your budget and expenses. Consider ways to increase your income or reduce costs.
• Emotional support: Moving out can be an emotional time for both the person leaving and those staying. It's essential to take care of your well-being and seek support if needed. Organisations like Childline offer free and confidential advice for young people considering moving out.
• Practical arrangements: If the person who moved out had specific responsibilities, such as cooking or household chores, you may need to redistribute these tasks among the remaining household members.
• Staying in touch: Maintaining communication and a healthy relationship with the person who moved out can be beneficial for all involved. Discuss expectations and preferences for staying in touch, such as frequency of contact and methods of communication.

If someone normally lives with you but is away from home

• They intend to return to live with you.
• You haven't sublet their room.
• If they're in the UK, they aren't likely to be away for more than 13 weeks.
• If they're outside the UK, they aren't likely to be away for more than 4 weeks.

If they're away for up to a year, they can still count as living with you if they are in hospital, or away studying or training. If none of these conditions apply, you can only have a bedroom for people who live with you all the time, and your Housing Benefit will be reduced if you have a spare room for those who have moved out but sometimes come to stay.

If you're expecting someone to move back in with you, such as a student who stays at university during term time, your Housing Benefit might not be reduced. Additionally, if you're a foster carer waiting for a child to be placed with you, you won't be affected by the 'bedroom tax'.

If someone in your household dies

If the deceased was the only occupier, the property will be exempt from council tax until the tenancy is ended or probate is granted. Charges may become payable after six months. If the household is claiming Housing Benefit or Council Tax Support, or if the surviving partner may now qualify for benefit, the claim will be adjusted if necessary.

If the deceased was part of a couple, the surviving partner can confirm that they are now the only adult in the household and receive a single-person discount.

If you are renting, your Housing Benefit will not be reduced for a year after the death. Universal Credit will not be reduced straight away either, and for up to three months your benefit will be calculated as if the deceased had not died. This is sometimes called 'bereavement run on'.

Frequently asked questions