The Taxing Of The Bedroom
This series of articles looks at the effects of Welfare Reform on young people. There is so much information out there that it is impossible to condense it all into one article, however if you have any questions please talk to MEIC - they are waiting for your call, text or instant message all day every day. If you have an experience with bedroom tax to share, please comment below.
Welfare Reform: Bedroom Tax – Impacts On Young People And Householders
"My mum told me to move out, 'cause it's cheaper for her to pay bedroom tax than pay proper council tax." - Jade (19), Ebbw Vale
On 1 April this year, the UK Government introduced bedroom tax. This means housing benefit will be cut for households which have under-occupation (i.e. a spare room).
But how will this effect you as young people? In the long run only time will tell, but there are a few basic facts and rules to the tax that will help you understand how it might have an impact on you and your home. It's worth noting that when Universal Credit comes in, there will be no non-dependent (adult son, daughter, relative or friend) deductions at all (called housing cost contributions) if the non-dependent is under 21.
How Will Young People Be Affected By Bedroom Tax?
Young people living independently in social housing could be affected. Young people who live with their family in social housing may find that their family is under-occupying and they may be asked to help out financially to help pay the ‘missing’ rent. It is possible that a young person who has left home may be asked to return to fill the spare ‘bedroom’.
Key Changes To Social Housing Benefit
The social rented sector accounts for 70% of all housing benefit (HB) claimants. The Government:
- Estimates that there are one million unused bedrooms in that sector, costing £0.5 billion each year
- Say that (pre-bedroom tax) there was little incentive for people to move out of 'over-large' properties
- Ask 'why use public funding to support empty bedrooms at a time of recession and a claimed housing crisis?'
Therefore people in properties with one bedroom unused have had a 14% reduction in their housing benefit, while those with two or more bedrooms unused are faced with a 25% reduction. (The reductions are in respect of the eligible rent that the HB is based on, and not reductions to HB.)
An estimated 660,000 housing benefit claimants living in social rented accommodation will be considered to be living in homes too big for their needs. The estimated saving from the bedroom tax in 2013/14 will be £480 million.
"My dad is having to find 25% of his rent for his house." - Eddie (23), Cwmbran
What Counts As A Bedroom?
Each local authority must determine a number of bedrooms, and must therefore determine whether a room is a bedroom. There is no definition of 'bedroom' in regulations or case law, but there are two ways of deciding whether a room is a bedroom:
- How would it be described if empty? or possibly
- How many bedrooms by actual usage of tenants? (Still an untested idea but a possible challenge point.)
The size of a room can also be relevant. The Housing Act 1985 says that rooms less than 4.64 SQ metres are excluded.
How Many Bedrooms Are Allowed?
A bedroom is allowed for each of the following:
- Adult couple
- Any other adult aged 16 or over
- Two children under 16 (same sex)
- Two children under 10 (opposite sex)
- Any other child
- Absent students (up to 52 weeks away)
- Non-dependents in the armed forces (must intend to return)
- Non-resident carer
- An approved foster carer gets a room for a foster child (foster carers and newly registered foster carers are allocated only one used bedroom as 'occupied', whether or not there is a foster child actually in residence)
- Grown up son/daughter in the forces but who still lives at home
Are There Any Exemptions?
- People over working age (61 and a half as at April 2013)
- Those in temporary accommodation
- Those in shared ownership
- People in supported exempt accommodation (where the landlord also provides care, support and supervision to the tenant)
"The other day, my Mum was in tears fearing the new bedroom tax, and what we're going to do as we have an extra room at our home." - Chris (18), Cardiff
What Other Options Are There For Those Affected?
The Government has suggested a number of options:
- Move to smaller accommodation with the same landlord
- Move to the private rented sector
- Get a lodger (landlord has to consent & income affects benefits)
- Ask other members of the family to help out
- Get a job or work more hours and increase finances
But you can also:
- Check with your local Citizens Advice Bureau that you're getting all the benefits you are entitled to such as money to help you with the costs of a disability
- Try asking your landlord to reclassify a spare room as a non-specific room if you think it's particularly unsuitable to be a bedroom. For example, they might agree to this if the room is very small or has to be used as a passageway to get to another room. This would mean it no longer counts as a spare bedroom for Housing Benefit purposes
- Apply to your local council Housing Benefit department for a Discretionary Housing Payment. However, councils only have a limited amount of money and will need to prioritise payments to disabled tenants whose homes have been specially adapted for them, and payments to foster carers
Not sure where you stand on bedroom tax? Try using the Citizens Advice Bedroom Calculator.
SOURCES
www.centrallondonconnexions.org.uk
Youth Access
Chester Benefits Training
Wrexham Info Shop
ORGANISATIONS
Citizens Advice Cymru
Shelter Cymru (24-hour support: 0845 075 5005)
Info >> Housing >> Housing Associations
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