The bedroom tax, officially known as the spare room subsidy, reduces housing benefits for tenants in social housing who are considered to have extra bedrooms. This policy affects thousands of people across the UK, particularly those on Universal Credit or Housing Benefit.
If you’re wondering “How much is bedroom tax?”, this guide will explain the latest bedroom tax rates for 2025, how to calculate your costs, and ways to reduce or avoid the tax.
UK Bedroom Tax Calculator
2013 – The UK Government introduces the Bedroom Tax, cutting housing benefits for social tenants with spare bedrooms.
2013 – Over 522,000 people affected; average loss: £12.66/week.
2013 – After backlash, the government adds exemptions for foster carers and military families.
2016 – Research links Bedroom Tax to rising poverty and mental health issues.
2025 – The policy continues to be linked to financial stress and social isolation.
What Is Bedroom Tax?
The bedroom tax was introduced to encourage better use of social housing by reducing benefits for those with extra bedrooms.
If a household has more bedrooms than the government deems necessary, their Housing Benefit or Universal Credit housing element is reduced.
How Does It Work?
- 14% deduction if you have one spare bedroom.
- 25% deduction if you have two or more spare bedrooms.
- Applies to social housing tenants, not private renters.
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Who Is Affected?
- Council tenants and housing association tenants who receive Housing Benefit or the housing element of Universal Credit.
- People living in England, Scotland, and Wales (not applicable in Northern Ireland).
How Much Is Bedroom Tax in 2025?
The exact amount of bedroom tax you pay depends on your rent and how many spare bedrooms you have.
Example Bedroom Tax Deductions
| Monthly Rent | 1 Spare Bedroom (-14%) | 2+ Spare Bedrooms (-25%) |
|---|---|---|
| £400 | £56 less in benefits | £100 less in benefits |
| £500 | £70 less in benefits | £125 less in benefits |
| £600 | £84 less in benefits | £150 less in benefits |
Use a Bedroom Tax Calculator
To get an exact figure, you can use an online bedroom tax calculator by entering your:
Monthly rent amount Number of spare bedrooms Housing Benefit or Universal Credit housing element
How to Calculate Bedroom Tax?
If you want to manually calculate how much bedroom tax you will pay, follow these steps:
- Find your total rent amount (e.g., £500/month).
- Check how many spare bedrooms you have.
- Multiply by the deduction percentage:
- 1 spare bedroom: £500 × 14% = £70 reduction.
- 2+ spare bedrooms: £500 × 25% = £125 reduction.
- Subtract this amount from your housing benefit to see how much you need to cover.
Bedroom Tax Exemptions & Who Is Affected?
Not everyone has to pay bedroom tax. There are several exemptions that might apply:
Who Does NOT Have to Pay Bedroom Tax?
Pensioners (if both tenants are over State Pension age). Disabled tenants who need an extra room for medical equipment. Parents with disabled children who cannot share a room. Foster carers (eligible for one extra bedroom). Armed forces personnel (if they live in the home but are deployed).
Applying for an Exemption
If you think you qualify for a bedroom tax exemption, contact your local council or housing association to apply.
How to Reduce or Avoid Bedroom Tax?
If you’re struggling with bedroom tax deductions, consider these options:
1. Apply for Discretionary Housing Payments (DHPs)
DHPs are extra funds provided by local councils to help tenants affected by the bedroom tax. You can apply through your local authority.
2. Downsize to a Smaller Home
Moving to a smaller property with the right number of bedrooms can eliminate the tax. Some councils offer help with moving costs.
3. Take in a Lodger
If permitted by your landlord, renting out a spare room can help cover the shortfall. This may also increase your income without affecting benefits in some cases.
4. Challenge the Bedroom Tax Decision
If you believe you’ve been unfairly charged, you can appeal the decision to your local council or tribunal.
Common Questions About Bedroom Tax
Is Bedroom Tax the Same as Council Tax?
No, bedroom tax is separate from council tax. Council tax applies to all households, while bedroom tax only affects social housing tenants receiving benefits.
Does Bedroom Tax Apply to Private Renters?
No, private renters are not affected by bedroom tax. Instead, private tenants have a different benefit system called the Local Housing Allowance (LHA).
Can I Get Extra Help If I Can’t Afford Bedroom Tax?
Yes! If you struggle to pay bedroom tax, apply for Discretionary Housing Payments (DHPs), look into charities that help with rent, or contact citizen advice services for support.