Bedroom Tax (Spare Room Subsidy)

The Bedroom Tax — formally called the Removal of the Spare Room Subsidy — is a reduction in Housing Benefit or the housing element of Universal Credit applied to social housing tenants who are deemed to have one or more spare bedrooms. The reduction is 14% for one spare bedroom and 25% for two or more. Certain groups, including those with a severe disability who need an overnight carer, are exempt.