1 The Bedroom Tax This factsheet was written by Tameside MBC Welfare Rights Service in February 2018. It is a guide and does not cover every circumstance. Though we have done our best to make sure it was correct at the time of publication, it may become inaccurate over time, because of changes to the law for example. What is the bedroom tax? The bedroom tax is also known as the under-occupancy rules or the removal of the spare room subsidy. It was introduced in April 2013. Even if it has not affected you yet, it may do so in the future (if you move to another home, or if your family circumstances change). You may be affected by the bedroom tax if: - Neither you or your partner are old enough to claim Pension Credit (see www.gov.uk/calculate-state-pension), and - You are claiming Housing Benefit, and - You rent your home from a local authority, housing association or registered social landlord, and - you have more bedrooms than the new Housing Benefit rules say you need How many bedrooms the rules say you need depends on your circumstances (see page 2). - If you have one more bedroom than the rules say you need, your eligible rent will be reduced by 14%. - If you have two or more bedrooms than the rules say you need, your eligible rent will be reduced by 25%. Your eligible rent is the part of your rent for which you can get Housing Benefit for. For example, if your rent is 100/week and you have one more bedroom than the rules say you need, only 86 of your weekly rent counts when calculating your Housing Benefit. You will therefore get less Housing Benefit, and you will have to make up the shortfall. 1
2 Your Housing Benefit may also be affected by the Benefit Cap (see www.advicetameside.org.uk/thebenefitcap/) How many bedrooms can I have before my Housing Benefit is cut? Under the new Housing Benefit rules, you are allowed one bedroom for: - Every adult couple - Any other adult - Any two children of the same sex aged under 16 - Any two children aged under 10 - A disabled child who is entitled to Disability Living Allowance (DLA) middle or higher rate care component, and who cannot share a room because of their condition - Any other child Under the rules, an adult is anyone aged 16 or over, and a child is anyone aged under 16. You are only allowed a bedroom for a child if they live with you most of the time. If a child lives with you and someone else for equal amounts of time, the person who receives the Child Benefit is entitled to the bedroom for the child under the new Housing Benefit rules. In some circumstances you are allowed extra bedrooms without your Housing Benefit being cut (see page 3). The Shelter website has a useful tool for estimating how bedrooms you are allowed before your Housing Benefit will be cut: http://england.shelter.org.uk/get_advice/downloads_and_tools/bedroom _tax_checker. 2
3 Extra Bedrooms You may be entitled to an extra bedroom if you or your partner: - need a bedroom for an overnight carer who does not usually live with you. To qualify, you need to be getting Attendance Allowance, Disability Living Allowance middle or higher rate care component, Personal Independence Payment daily living component, or the Armed Forces Independence Payment. Alternatively, you will need to provide medical evidence that an overnight carer is needed. Only one additional bedroom is allowed, even if both you and your partner need an overnight carer. - are an approved foster carer. It does not matter if the extra bedroom is unoccupied, providing a fostered child has occupied it in last 12 months, or if you or your partner were only approved as a foster carer in the last 12 months. Only one extra bedroom is allowed, even if more that one child is being fostered. - are unable to share a bedroom and have to sleep apart due to disability (the person with the disability will need to receive a disability benefit) If both of the conditions above are met, you are entitled to two extra bedrooms. If you are jointly responsible for your rent with someone other than your partner (i.e. a joint tenant ), they will be entitled to extra bedrooms if they or their partner meet one or both of the conditions outlined above. You can also have an extra room for a child placed with you prior to an adoption order being made. If your Housing Benefit is then reduced when an adoption order is made, you may be able to get Discretionary Housing Payments to cover the shortfall. You are also allowed to keep a bedroom free for someone deployed on operations with the armed forces (providing they intend to return to occupy the bedroom). You may also be allowed to keep a bedroom free for students living temporarily away from home (if they are away for less than 52 weeks, and intend to return to occupy the bedroom). 3
4 If you have been in your home since before 1 st January 1996 You should request a refund of any Housing Benefit you lost as a result of the bedroom tax between 1 st April 2013 and 2 nd March 2014, if: - If you were living in the same house continuously from before 1st January 1996, and - you were getting Housing Benefit continuously from before 1 st January 1996 If this applies to you, write to the council s Housing Benefit department to request a refund. If your request is successful, you may have to repay any Discretionary Housing Payments you received during the period you are refunded for. You may still count as continuously claiming Housing Benefit if you took over the claim from someone else. Your claim may also count as continuous if the only breaks in it were for 4 weeks or less (52 weeks or less if you moved into work or training following a period of claiming certain sickness benefits). You can still count as continuously living in your home if you had to live somewhere else temporarily due to a fire, flood, explosion or natural catastrophe. Special Circumstances If someone in your household dies, and this means you will be affected by the bedroom tax for the first time, it will not affect you for the first 12 months (providing you stay in the same property). If, due to a change in your circumstances (e.g. redundancy), you are making a first claim for Housing Benefit in the last 12 months, the bedroom tax should not affect you for the first 3 months. If a room is classed as a bedroom but cannot be used as such (e.g. because of its size, or the needs of someone expected to occupy it), you could ask your local council to look at your Housing Benefit award again, or appeal (see pages 5-6). 4
5 Exempt Accommodation Some types of accommodation may be exempt from the bedroom tax. Seek advice if your Housing Benefit is reduced because of the bedroom tax, and you live in one of the following types of accommodation: - accommodation where the landlord provides, or contracts someone to provide, care, support or supervision for you. - sheltered accommodation for older people - shared ownership tenancies (where you are renting one part of a property and buying the rest) - where your rent is for mooring fees for a houseboat or site fees for a caravan or mobile home - temporary accommodation for homeless people - a tenancy you entered into before 15 th January 1989 - a tenancy in an approved bail or probation hostel - former local authority or new town lettings which have been transferred to a new owner, where there has been no rent increase since the transfer 5
6 Challenging Housing Benefit decisions If your Housing Benefit has been reduced because of the bedroom tax, and after reading pages 2-5 you feel this decision is incorrect, you can appeal using this form: www.tameside.gov.uk/fingen/new/appeal.pdf. Remember to attach photocopies of any evidence that supports your case. The address to post it to is included in the form. Your completed form needs to have been received by your local council within 1 month of the date on the letter which told you that your Housing Benefit was being reduced. If you miss the 1 month deadline, seek advice immediately. When you appeal, the council may change its decision (make a revision ). If it does so, this is in effect a new decision, which you have 1 month to appeal if you still feel it is incorrect. If the council cannot make a revision, it will send your form to HM Courts and Tribunals Service. If this happens, an independent tribunal will then decide your case. If you think the tribunal made an error of law when deciding your case, please seek specialist advice What can I do if I am affected by the Bedroom Tax? If you cannot afford your rent, pay what you can, and let your landlord know in advance. Explain your situation and tell them what you are doing about it. - Use the Turn2Us benefit calculator (www.turn2us.org.uk) to check you are getting your full benefit entitlement. You can also check if you can increase your income by moving into work, or by increasing your earnings if you are already working. - If a member of your household has a disability or health condition, check if they could get Personal Independence Payment, Disability Living Allowance, or Attendance Allowance. - Consider moving to a property with fewer bedrooms. You should discuss this with your landlord. Alternatively, you could exchange your tenancy with another tenant anywhere in the UK, through a home swap website (e.g. Home Swapper). You will need the 6
7 permission of your current landlord, and the landlord of the tenant you are exchanging with. No tenancies can be transferred or exchanged. It is harder to do this once you are in rent arrears. - If your tenancy agreement lets you, consider renting out a spare room to a boarder or lodger. You would need to let your landlord know in advance, your council tax and benefits could be affected, and you have some legal responsibilities (e.g. to give reasonable notice if you want a boarder or lodger to leave). Therefore it is best to seek advice first (see page 9). - You could try to make up the shortfall between your rent and Housing Benefit yourself. The MiNT website (www.mintameside.org.uk) has useful information on personal and household budgeting. You could ask people you live with (e.g. adult children) to contribute more to the rent if they are able to do so. - If you or your partner will soon reach Pension Credit qualifying age, or if a child will soon be too old to be expected to share a room, then you may not be affected by the bedroom tax for long. 7
8 Discretionary Housing Payments Discretionary Housing Payments are short-term, temporary payments made by local councils to people who are struggling to pay their rent (e.g. because of the bedroom tax ). They can also be given to help pay for rent in advance, or a deposit, if you have to move home. Discretionary Housing Payments are awarded for a fixed term, but you can reapply when your current award ends. Tameside residents can apply for Discretionary Housing Payments using this form: www.tameside.gov.uk/benefits/dhp/claim.pdf. When applying, explain any special circumstances, for example if: - you would become homeless if they are refused - you have a fixed-term tenancy and cannot move to another property until it ends - you need to live in a particular area to access employment, education, training, or health or social care services - you expect a child in care to return to live with you again soon - you have been approved as an adopter, and you need a spare room so a child can be placed with you prior to adoption - you have adopted a child and the local authority has recommended that your child be given their own room - you are going through the approval process to be a foster carer - you are fostering, or intending to foster, more than one child - you are fleeing domestic abuse - If Discretionary Housing Payments would allow to continue caring for someone If your application is refused, you can ask your local council to look at its decision again. 8
9 Further Information And Advice The MiNT website (www.mintameside.org.uk) has useful information on personal and household budgeting. Tameside Citizens Advice Bureau offers information and advice on a whole range of issues at their drop-in 9am -1pm every weekday at Ashton Customer Services (Clarence Arcade, Stamford Street, Ashton under Lyne, OL6 7PT). Tameside MBC Welfare Rights Service offers specialist telephone advice on benefits on 0800 0749985 (09:30-12:30, Monday and Wednesday). If you are a New Charter tenant you can get free debt and benefits advice by ringing New Charter on 0161 331 2200. Tameside Housing Advice offer advice on housing and homelessness. Their website (www.tamesidehousingadvice.org/) has a link to a selfassessment tool that will direct you to the specific information and advice you need. If you are homeless, or about to be made homeless, ring them on 0161 3312700. Shelter Manchester can offer specialist advice and support around housing issues. They can be contacted on 0344 5151640. 9