Spare bedroom deduction from Universal Credit

This is almost certainly the application of what is formally known as the removal of the spare room subsidy, commonly referred to as the bedroom tax. It applies to people who receive Universal Credit and who rent their home from a social landlord such as a council or housing association.

How it works:

The housing costs element of your Universal Credit is calculated based on the number of bedrooms the Department for Work and Pensions considers you need, not the number you actually have. If your home has more bedrooms than the rules say you need, a percentage reduction is applied to your eligible housing costs.

The reduction is 14 per cent for one spare bedroom and 25 per cent for two or more spare bedrooms.

Who is allowed which bedrooms:

The rules say you are entitled to one bedroom for each of the following:

1. A couple who are joint claimants or a claimant and their partner.
2. A child aged 16 or over.
3. Two children of the same sex under 16.
4. Two children under 10 regardless of sex.
5. Any other child.
6. A non-dependent adult member of the household.
7. A carer or overnight carer who does not live with you but regularly stays overnight to provide care to you or your partner, provided you or your partner receive certain disability benefits.

There is also an additional bedroom allowed for a foster child or a child who cannot share because of a severe disability, though this last point has been the subject of case law.

Important things to check:

First, you should check whether the DWP has correctly assessed the number of bedrooms in your property. There have been many disputes about what counts as a bedroom. A very small room, a room used for medical equipment, or a room that would not practically function as a bedroom may be open to challenge. The classification of rooms on the tenancy agreement or by the landlord is relevant but not necessarily decisive.

Second, check that the DWP has correctly counted who lives with you and how they should be allocated bedrooms under the rules above. Errors in household composition are not uncommon.

Third, if you or someone in your household has a disability that means an extra bedroom is needed, for example for medical equipment, for an overnight carer, or because a child cannot share a room due to a severe disability, you may have grounds to argue the reduction should not apply or should be reduced.

Discretionary Housing Payments:

Even where the reduction is correctly applied, you can apply to your local council for a Discretionary Housing Payment to help cover the shortfall. These are not guaranteed and are subject to the council's own policy and available budget, but they are specifically intended to help people affected by the bedroom tax, particularly those who are disabled, carers, or who are in other difficult circumstances. You should apply in writing to your local council's housing benefit team, explaining your circumstances fully.

What you can do:

1. Ask for a mandatory reconsideration from the DWP if you believe the bedroom assessment is wrong or your circumstances have not been properly taken into account. You normally have one month from the date of the decision to request this.
2. If the mandatory reconsideration is unsuccessful, you can appeal to the First-tier Tribunal (Social Entitlement Chamber). There is no fee for this.
3. Apply to your council for a Discretionary Housing Payment in the meantime, as this can be done alongside any challenge.
4. Contact your landlord to discuss whether a transfer or mutual exchange to a smaller property might be available if you would prefer to move to avoid the reduction.

If you can share more detail about your specific household, the number of bedrooms, and who lives with you, I can give you a clearer view of whether the reduction looks correct or whether there may be grounds to challenge it.