The Under Occupancy charge or so-termed Bedroom Tax is applied under Housing Benefit or Universal Credit rules where it is deemed that you have too many bedrooms for your household need. Your Housing Benefit, or the Housing element component of Universal Credit, will be reduced by an amount equal to 14% of your rent if you are regarded as having one ‘extra’ bedroom; or by 25% of your rent if you have two or more ‘extra’ bedrooms.
Please note: If you (or you and your partner) are of Pension Credit age and in receipt of Housing Benefit, then you will not be affected by the Bedroom Tax.
In certain circumstances the Bedroom Tax will not apply to your household and therefore you should check to see whether the rules have been applied correctly and if they have, what else, if anything, you can do to avoid and/or manage the charge.
If you are subject to the bedroom tax, it may be that there will be alternative property available more suited to your needs. A short term solution however, may be to apply for a Discretionary Housing Payment and therefore you should speak to your Housing Officer and/or to the Local Authority.