More than 300 households could be hit by ‘bedroom tax’

Local charity, Exeter Citizens Advice Bureau, is warning people of working age renting from social landlords that their Housing Benefit may be cut from April 2013 under Government reforms of the welfare system. The CAB understands that more than 300 households could be affected by these changes.

Under the new rules, commonly known as ‘the bedroom tax’, if households have more bedrooms than the government says they need, their home will be counted as being too big for them. If this is the case, they may lose some or all of their Housing Benefit. The home will be deemed too big if there is more than one bedroom for each of the following:

• each adult couple; 

• each other person over 16; 

• two children of the same sex under 16; 

• two children under 10, regardless of their sex; 

• any other child • an overnight carer you need but who doesn't normally live with you.

If the home is considered to be too big, Housing Benefit will be cut by:

• 14% of the rent if there is one spare bedroom; 

• 25% of the rent if there are two or more spare bedrooms.

Some people may lose all of their Housing Benefit, particularly if they were only getting a small amount to start with.

Steve Barriball, Chief Executive of Exeter Citizens Advice Bureau said:

“If Housing Benefit is cut because the home is considered too large, this will probably result in a shortfall between the rent and the amount of Housing Benefit being received. Householders will be responsible for making up this shortfall. If they can't make up the shortfall, they could end up losing their home. Therefore, it is essential that people act now to lessen the impact these changes will have on them.

“Local housing benefit departments should write to people potentially affected by these reforms before April 2013. They will ask for details of who lives in the home and how many bedrooms they have. If there is a reduction in housing benefit then the local housing benefit department will send a ‘change of award’ notice giving the new rate of Housing Benefit.

People affected by the changes may want to consider:

• making up the shortfall themselves from other benefits or savings, if they have any; • try to increase income from paid work, for example by getting extra hours; 

• make sure they're getting all the benefits they can, for example money to help with the costs of a disability; 

• ask family members who live with them to contribute more; 

• move to a smaller home in the social housing or private rented sector. Discuss this option with the landlord. The social housing landlord may be able to help swap the home for another council or a housing association place, or give priority for re-housing on its waiting list or through their bidding system. They may also offer a sum of money or other help to encourage downsizing; 

• apply to for a Discretionary Housing Payment. However, local councils only have a limited amount of money and will need to prioritise payments to disabled tenants whose homes have been specially adapted for them, and payments to foster carers;

• take in a boarder or lodger to live in the spare room. This would mean the room no longer counts as being spare for Housing Benefit purposes. Householders will need to ask their landlord for permission to do this, but landlords are expected to agree in most cases. Remember that income from a lodger may affect any entitlement to benefits.

More details, including a bedroom calculator for social housing tenants, can be found in the Benefits Section at: www.adviceguide.org.uk