We are currently experiencing technical difficulties with our telephone system.
We apologise for any inconvenience and are working to resolve this as soon as possible.
Evolution Money
Customer Enquiries 0161 814 9158
This website uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Continue

Unoccupied bedrooms can lead to a limit on the amount of housing benefit

Bedroom Tax: Explained

Home > Help & Advice > Finance FAQs > Bedroom Tax: Explained

The bedroom tax will affect you if you are a housing association, approved social housing or council tenant of working age who lives in a property with at least one ‘spare’ bedroom.

Unoccupied bedrooms can lead to a limit on the amount of housing benefit you can receive. It’s a reduction officially called an under-occupancy charge but commonly called the bedroom tax.

In simple terms, it means that housing benefit will cover the number of bedrooms an individual or family actually needs, but any extra rooms must be funded independently. There are discretionary housing payments, however, that can pay bedroom tax costs in some circumstances.

Reductions

Housing benefit will go down by 14 per cent of the total eligible rent if a property has one spare bedroom. This increases to 25 per cent if there are two or more spare rooms. This means that if your rent is £100 but you have two spare rooms, then only £75 would count when housing benefit was assessed. You would have to pay the extra £25 yourself. If you had one extra bedroom, only £86 of the rental figure would be counted, and you would have to top up the additional £14.

Financial Difficulties

You may be entitled to a discretionary payment, so contact your local council. Also ensure that you are receiving all other benefits that you are able to claim.

You may be able to take in a lodger. Home improvement loans are available to help you get a spare room up to scratch if you meet the criteria, and you can keep £20 of income from a lodger before it starts to affect any other benefits you claim.

If you are unable to manage because of the bedroom tax, you could consider exchanging or transferring to a smaller property without a spare room. Secured loans could be used to bridge the gap in the short term, although these are normally not available to people with no property to act as security.

Exemptions

There are exemptions if you and any partner have reached pension credit age, if you are living in a shared-ownership property, a houseboat, caravan or mobile home, or if you are living in particular kinds of supported accommodation. Homeless people housed in council-provided temporary accommodation are also exempt, although they are not if the property is council-owned. If you are unsure if you are exempt, contact your local council for advice.

Number of Rooms

To determine if you have a ‘spare’ room, you must first understand what space people are entitled to in terms of housing benefit. A couple can claim housing benefit for one bedroom, as can a person of 16 years or older. You can claim for one bedroom to accommodate two children who are of the same sex and aged under 16 and a bedroom for any other child. There is also the potential to claim for a bedroom used by an overnight carer.

Approved foster carers can have the room allowance even if they are between placements as long as they have fostered or become approved carers within the last year. Children are generally classed as living with the person who is given their child benefit, and adopted children are counted once there is an adoption order in place. Students’ rooms can be counted if they are not away for more than a year and have the intention of returning home, as can armed forces personnel.

Children with severe disabilities do not have to share if it is determined they need their own room. The benefits received and medical evidence will be considered, along with the impact on another child if they had to share the room.

Refunds

You may be in line for a refund of bedroom tax due to a tax loophole. This will only apply if you have received housing benefit on a continuous basis for the same property since before January 1st, 1996

Warning: Late payment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

How our customers rate us

We’re proud of the high standard of our customer service and believe that each of our customers should be treated as an individual.
Evolution Money 90 out of 100, based on 112 reviews over the past year. 112 user reviews. Read our reviews

Members of the The Finance & Leasing Association

FLA logoThe Finance & Leasing Association is the leading trade body for the motor finance, asset finance and consumer credit industries in the UK.

Socialise

Feeling social? Check out our social pages!

Tweet us on Twitter
Like us on Facebook
Pin us on Pinterest
Add us on Google+

Our Address

Evolution Money,
9 Portland Street,
Manchester,
M1 3BE


Registered Company Number: 06987852

Contact by Phone

General Enquiries:
0161 814 9158

Complaints:
0161 814 9165

Contact by Email

Evolution Money Limited is a licensed credit broker and service provider to Evolution Lending Limited. If your application doesn’t meet the underwriting requirements of Evolution Lending Limited we may pass your information to other lenders and brokers. Evolution Money Limited is a company registered in England & Wales, registration number 06987852 and registered at 8 St John Street, Manchester, M3 4DU. Authorised and regulated by the Financial Conduct Authority, firm reference number 708324.

© 2018 Evolution Money | Cookies | Complaints Policy | Breaking Down Our Loans | Terms & Conditions | Fair Processing Notice
Apply Online
I want to borrow £
You will need to read and agree to our Fair Processing Notice before continuing. *
You will receive a call today to continue with your application.
Thank you for taking the time to fill in our online enquiry form. Unfortunately in this instance we won't be able to help as being a homeowner is one of our primary requirements.

Fair Processing Notice

Who we are:

Evolution Money Ltd, Progressive Money Ltd and Evolution Lending Ltd are all wholly owned subsidiaries of Darwin Loan Solutions ('the Group').

We take your privacy seriously and will only use your personal information to

A) Discuss loan offers and provide you with the products and services you have requested.
B) If you take out a loan with us and become our customer, it will also be used to manage your loan.

We'll keep your details for up to 12 months to enable us to help you with your loan application. If you don't take out a loan with us, we will delete your enquiry details unless regulations say we must keep them for longer.

This won't change any marketing preferences you've already chosen.

How we control and process your data:

Our companies hold and process your personal data in accordance with Data Protection law in the UK. We are committed to maintaining the privacy and protection of all personal data collected in connection with our broker and loan services. We may share your information with credit reference agencies and other companies for use in credit decisions, for fraud prevention and for debt collection purposes.

Next

Marketing Contact preferences - putting you in control:

We would love to tell you from time to time about offers and special deals on loans, insurance products and utility services which may save you money.

If you're happy to be contacted about these, please click the boxes to tell us how you want us to get in touch with you.

You can change how we contact you at any time by simply getting in touch with us on FPNandmarketing@darwinloansolutions.co.uk or 0161 814 9210.

Your choices do not affect your enquiry/loan application in any way.

BackNext

Marketing Contact preferences - Our partners:

We would love to tell you from time to time about special offers and deals from our carefully selected partners.

If you're happy to be contacted by them please click the boxes to tell us how our partners can get in touch with you.

You can change how we contact you at any time by simply getting in touch with us on FPNandmarketing@darwinloansolutions.co.uk or 0161 814 9210.

Your choices do not affect your enquiry/loan application in any way.

BackNext

Please read the full details of our Fair Processing Notice including Credit Reference Agency Information Notice (CRAIN) Click here to see a copy of the CRAIN.

If you agree to our Fair Processing Notice and want to continue to the next stage - click Agree.

BackAgree

Start Here
Please wait

Please wait

Don't leave just yet!

Evolution Money are a multi Award Winning UK finance company with thousands of happy customers!

Award Winning

Our friendly loan advisors can let you know if you're eligible for a loan without affecting your credit score. Why not give us a call today!

Freephone 0800 144 8188

Back to Evolution