Bedroom Tax, or the Spare Room Subsidy, is a policy introduced by the UK government to reduce housing benefit for individuals or families living in social housing with unoccupied bedrooms.
The amount of Bedroom Tax payable depends on factors such as the number of extra bedrooms and the applicable reduction rates.
how much is bedroom tax a week?
The amount of Bedroom Tax an individual or household has to pay depends on various factors such as the number of unoccupied bedrooms and their overall housing benefit entitlement.
Here, we will discuss the different rates and circumstances that determine the cost of Bedroom Tax.
1. How is Bedroom Tax Calculated?
To calculate the amount of Bedroom Tax, local authorities use a set of rules defined by the UK government.
These rules assess the number of bedrooms required for a household based on the number of occupants and their relationships. Any additional bedrooms beyond the determined requirement are subject to tax.
2. Bedroom Tax Rates
The current Bedroom Tax rates vary depending on the number of extra bedrooms an individual or family has. As of 2023, the rates are as follows:
- One extra bedroom: 14% reduction in eligible rent.
- Two or more extra bedrooms: 25% reduction in eligible rent.
Let’s consider an example to understand how Bedroom Tax is calculated.
Suppose a household’s eligible rent is £150 per week, and they have one extra bedroom.
Applying the 14% reduction rate, the Bedroom Tax payable by the household would be £21 per week.
Similarly, if there are two or more extra bedrooms, resulting in a 25% reduction, the weekly cost would be £37.50 (25% of £150).
4. Exemptions and Special Circumstances
Certain exemptions and special circumstances exist that may affect the application of Bedroom Tax. These include:
- Foster children: If a household has a spare bedroom for foster children, they may be exempt from the Bedroom Tax.
- Disabled adults: Households with an extra bedroom for a disabled adult or a couple may be eligible for an exemption.
- Armed forces: Members of the armed forces may be exempt from Bedroom Tax if they have a designated spare bedroom for their job.
It’s crucial to consult with the local authorities or seek professional advice to understand specific exemptions and special circumstances.