Bedroom Tax / Spare Room Subsidy
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The Bedroom Tax, also known as the Spare Room Subsidy, affects anyone of working age who receives Housing Benefit or Universal Credit (housing costs) and is considered to be under-occupying their housing association or Council home.
There are a number of rules about what classes as a taxable spare bedroom, including:
Having one spare bedroom will mean you lose 14% of your Housing Benefit / Universal Credit.
Having two or more spare bedrooms will mean you will lose 25% of your entitlement.
If you are affected by the Bedroom Tax, you will need to make arrangements to pay the difference between your Housing Benefit entitlement and the rent / service charge you pay.
If you need extra help with your housing costs / council tax, you can apply for a a discretionary payment from your Council. For further details, go to www.birmingham.gov.uk or www.telford.gov.uk
Bedroom Tax will not affect you if you receive a state pension or rent a shared ownership property.
If you are experiencing financial hardship, or need advice on benefits, please contact us.
Categorised in: Managing Your Money
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