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Updated 21 March 2013

Removal of the Housing Benefit spare room subsidy in the social rented sector

The Welfare Reform Act 2012 announced that the current rules for the size of accommodation that Housing Benefit will cover in the private rented sector will be applied to working age tenants renting in the social sector.

From April 2013 all current and future working age tenants renting from a local authority, housing association or other registered social landlord will receive Housing Benefit based on the need of their household.

The size criteria allows one bedroom for each person or couple living as part of the household with the following exceptions:

Guidance was also sent to local authorities on 12 March 2013 to confirm that they should follow case law (Burnip/ Gorry/ Trengove) and allow a room for a disabled child who is unable to share a bedroom.

This means those tenants whose accommodation is larger than they need may lose part of their Housing Benefit. Those with one extra bedroom will have a 14 per cent reduction applied to their eligible rent and those with two or more extra bedrooms will have a 25 per cent reduction applied.

Further Information can be found in the impact assessment and the frequently asked questions:

Communicating the change

Local authorities have contacted those potentially affected to raise awareness of this change and to confirm the information they have about the size of a claimant’s accommodation and household. This ensures the local authority holds the accurate and up to date information necessary to calculate the award of Housing Benefit from April 2013.

Factsheets and posters

The factsheet below details who may be affected by the change from April 2013. It provides further details about the change and other sources of help:

The poster below should be displayed where appropriate to help to raise awareness of the change with Housing Benefit claimants:

How you can help to support those affected

Housing Benefit claimants affected by this change need to be aware of the impact this may have on their benefit so they can see if the excess rent can be met from their other income, which will allow them to stay in their home. Other ways of addressing the shortfall could be to:  

Discretionary Housing Payments

An additional £25 million per year will be available from 2013/14 to help with the introduction of this change. This extra funding is aimed at disabled people living in significantly adapted accommodation.