Bedroom tax

The Bedroom Tax was introduced in other parts of the UK in April 2013. It has not been introduced in Northern Ireland yet.

MLAs at the Assembly are still debating the Welfare Reform Bill. Until the Assembly passes this bill and it becomes an Act the Housing Executive can't cut your housing benefit because you have more rooms than you need.

Pensioners and partners of pensioners will not be affected by this change. When Universal Credit replaces the current benefits system this change may affect couples where only one partner is of pensionable age.

Northern Ireland
Number of bedrooms
Underoccupation penalty / Bedroom Tax
Foster carers and members of armed forces
Ways to cope
Discretionary Housing Payments
Taking in a lodger
Moving house

Northern Ireland

The legislation to allow this change to housing benefit has not been passed yet by the Northern Ireland Assembly. The Assembly is considering the legislation but it has not given a date for these changes so we don’t know when this will start to affect tenants in Northern Ireland.

The information on this page is based on the laws and guidance which are in place in Great Britain. The system in Northern Ireland will probably follow these, but there may be some small differences. If you want to check how this will affect your claim, talk to Housing Rights Service or your local housing benefit unit.

We will update this page as soon as we know when changes are going to come in for tenants in Northern Ireland.

The bedroom tax in England, Scotland and Wales

This information is all about how the bedroom tax works in England, Scotland and Wales. When we know how it will work in Northern Ireland we will update this page.

Number of bedrooms

If you rent your home from a private landlord and you receive housing benefit, you will only receive enough benefit for the number of rooms your household is legally entitled to. If the bedroom tax is brought in in Northern Ireland this restriction will also apply to people who rent their homes from the Housing Executive or a housing association.

One bedroom is seen as appropriate for

a couple;
a person aged 16 and over;
two children of the same sex;
two children under 10;
any other child;
a carer providing overnight care.

If you are an approved foster carer you may be allowed one additional bedroom. If you share care of your children with a partner, the regulations will only only a bedroom if you are the primary carer for the children and receive child benefit.

If one of your children has disabilities which mean he or she is unable to share a bedroom with another child you will be allowed an additional bedroom.

Underoccupation penalty

If the Bedroom Tax is approved your housing benefit will be reduced if you are seen to be living in a property that has more bedrooms than you lawfully require. Your housing benefit payment will be reduced by

14% if you have one more bedroom than you require and
25% if you have two or more bedrooms over your legal needs.

You will be expected to pay the shortfall in your rent directly to your housing provider. The government has suggested a number of ways that tenants can cope with this cut to benefits, but many tenants may have to find more affordable accommodation.

Foster carers and members of the armed forces

In March 2013 the UK Government announced some changes to the bedroom tax. There will be 2 new exclusions applied in Great Britain.

If you have an extra room because you have an adult son or daughter who is serving in the British Army but would otherwise be living with you you will not be seen to be underoccupying that room.

People who have either been accepted as approved foster carers in the last 12 months or who have fostered a child in the last 12 months will be allowed an additional room for foster children. You will only be allowed one additional room, regardless of how many children you foster.

Ways to cope

If you wish to stay in your home you will need to consider how best to make up the difference between your housing benefit and your rent. You could consider

asking people who live with you to contribute more towards the rent
trying to increase your hours at work or finding paid employment
applying for a Discretionary Housing Payment. This is a short term payment from the Housing Executive although your application may not be successful
renting your extra room to a lodger, although this may affect your entitlement to other benefits
applying for a transfer to a smaller property.

Discretionary Housing Payments

If your housing benefit is cut because of the bedroom tax, you can apply to the Housing Executive for a Discretionary Housing Payment. This is a short term top up payment which can help with your shortfall in rent.

You will not always be awarded a Discretionary Housing Payment. You will have to show that, without this payment, you will be in severe financial hardship and you may have to show that you have investigated other options to deal with the shortfall.

Discretionary Housing Payments may be awarded as a priority to people who need the additional room or rooms to provide foster care to children and to people who are living in a property which has been specially adapted to deal with a disability.

Taking in a lodger

If you decide to take in a lodger you should first check with a local advice agency what effect this will have on your benefits. Any money you receive from a lodger will be treated as household income and could impact on how much benefit you receive.

If you receive less than £4250 each year by renting a room you do not have to declare this income to HMRC. However, if you receive more than this you will need to complete a tax return and pay income tax on the additional amount.

Living with a lodger can be complicated. Draw up ground rules and make sure that you and your lodger are comfortable with these before making an agreement. It’s a good idea to have some sort of signed agreement with your lodger that deals with how much and when rent is paid as well as how each of you can end the arrangement.

Moving house

You may need to consider moving to a smaller home if you're unable to manage the rent on your home once your housing benefit is reduced. You can find out more about applying for an exchange or transfer elsewhere on this site. If you decide to look for an exchange, where you swap your home with another tenant, you might want to post details of your current home on Homeswapper.

Homeswapper is a website that has details of social homes across Great Britain which are available for exchange. If your landlord is a member of the scheme it is free for you to advertise your property. The Housing Executive and some local housing associations are members of this service. If you're not sure whether your landlord has subscribed to Homeswapper call your housing officer to check.