The impact of ‘bedroom tax’
Q
. I live in a Gentoo house, I was living with my dad, but he passed away last year. I have been told that my Housing Benefit will reduce in two weeks because I will be affected by the ‘bedroom tax’. I am claiming Jobseekers Allowance and I don’t have the money to pay the bedroom tax. Is there anything I can do?
A
. If you have spare bedrooms then an under occupancy charge is added which reduces your Housing Benefit entitlement. If one of the spare rooms was previously used by someone who has passed away then the bedroom tax isn’t applied for that bedroom for 12 months, which will be why you are just starting to be affected by this. You are allowed one room for:
Each adult (16 of over) or couple in the property – couples can be allowed a room each if they are unable to share due to disability.
Up to two children of the same sex aged under 16.
Up to two children of either sex aged under 10.
Any other child. A room can also be set aside if you are an approved foster carer or if you have a disability and require overnight care from another person. If none of these apply, then the bedroom tax charge will be correct and your Housing Benefit will reduce by 14% if you have one spare room or 25% if you have more than one spare room. If you are going to struggle to cover the reduction in your Housing Benefit then you could apply for a Discretionary Housing Payment from the council. These are short term payments which are means tested and at the Local Authorities discretion; they tend to be awarded where people have had a change of circumstances of a short term additional need, they are not generally paid to cover under occupancy charges for long periods are you would be expected to look for more affordable accommodation. Discretionary Housing Payments range in length and amount depending on your financial situation.
Q
. I am going to be moving in with my grandmother while I sell my property and look for somewhere new. She is getting a State Retirement Pension and a couple of small occupational pensions. She gets some Housing Benefit and Council Tax Reduction, but not the full amount. Will her benefits be affected by me moving in with her?
A
. Usually if someone who is claiming Housing Benefit or Council Tax Reduction has someone else living with them then a non-dependent deduction is taken from their Housing Benefit and Council Tax Reduction; the amount is on a sliding scale depending on the nondependent person’s income. However, there is an exception if you are staying with your grandmother temporarily while you have a home elsewhere, in which case you would not attract a nondependent deduction. If there is a period when you do not have a home elsewhere, then a non-dependent deduction would be applied, but this does not take place for the first six months if your grandmother is aged 65 or over.