Under Occupation Charge (the Bedroom Tax)
If you are renting a property with more bedrooms than you need, your Housing Benefit will be restricted by the Under Occupation Charge (also known as the ‘Bedroom Tax’) and you will have to cover the shortfall in rent yourself.
If you are affected by the Under Occupation Charge your Housing Benefit will be reduced by:
- 14% for one extra bedroom.
- 25% for two or more extra bedrooms.
If your family is growing and you want to stay in a larger home, you will have to pay the charge in the short term.
If you are unsure if you will be affected by the Under Occupation Charge or think you might struggle with the reduction in Housing Benefit or Universal Credit, we can help.
Please contact us and we can put you in touch with our Financial Inclusion team or help you downsize to a smaller property that suits your needs.