The Bedroom Tax – information from the Debt Advice Strand of The Crossway

The Bedroom Tax – information you might need to know from the Debt Advice Strand of The Crossway

There has been much discussion in the media about the so-called “Bedroom Tax”. This will apply if you rent from the council or a housing association and you are receiving housing benefit. If you have a spare bedroom your housing benefit will be reduced.

You can only claim housing benefit for one bedroom for each of the following people who live in your home:

  • A couple
  • An adult
  • Two children of the same sex
  • Two children under 10
  • Any other child
  • A non-resident carer providing overnight care.
  • If you have more bedrooms than you need then a percentage reduction will be applied to your eligible rent for the purpose of calculating housing benefit:

  • 14% reduction for one spare bedroom
  • 25% reduction for two spare bedrooms
  • However, the following exemptions apply:

  • Pensioners
  • Foster carers
  • Parents of adult children who are in the Armed Forces who still live with their parents
  • People living in shared ownership property
  • People living in accommodation such as caravans, boats
  • Some exempt supported accommodation.
  • These rules are being applied from 1st April 2013 and we are already seeing clients whose household costs have increased as a result.

    The solutions could include renting out a spare room or moving to a smaller property and these are options we discuss with our clients when seeking ways for them to increase their income.

    If you’d like to know more then we’d recommend the Shelter website, click on “get advice”

    Like to be part of our team? Call Michael Waters on 0121 426 0071

    26th Mar 2013 Posted in: St John's Stories by Fran Varley 0

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