How is the Bedroom Tax worked out?

Housing benefit is based on an amount of rent that is eligible for housing benefit. If the house has no extra bedrooms (according to the bedroom allowance) then the full rent is eligible. If there is at least one extra bedroom, then (unless you are exempt from the bedroom tax) the amount of rent eligible for housing benefit will be reduced as follows:

• One extra bedroom - 14% of the rent (about one seventh)

• Two or more extra bedrooms - 25% of the rent (one quarter)