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Under-occupancy (bedroom tax)
If you rent your home from Orkney Islands Council or Orkney Housing Association and you have more bedrooms than your household is considered to need, you may be treated as under-occupying the property. If you are of working age, your Housing Benefit or Universal Credit housing costs may be reduced as a result. This is commonly known as the bedroom tax or spare room subsidy.
The reduction is 14% if you have one more bedroom than you need, or 25% if you have two or more extra bedrooms.
How many bedrooms are you allowed?
The rules allow one bedroom for each of the following:
- Every adult couple (married or unmarried)
- Any other adult aged 16 or over
- Any two children of the same sex aged under 16
- Any two children aged under 10
- Any other child whose main home is your property
- A carer or team of carers who do not live with you but provide overnight care for you or your partner
- Approved foster carers, provided they have fostered a child in the last 12 months
What to do if your housing costs are reduced
If you are affected by a reduction in Housing Benefit or Universal Credit housing costs, there are a number of options to consider. You may be able to take up employment or increase your hours to make up the shortfall. You could also consider renting out a spare room. If you need further short-term financial help to cover your rent, you can apply for a Discretionary Housing Payment.
Related resources
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Discretionary Housing Payment Application Form
This document contains a claim form for Discretionary Housing Payments from Orkney Islands Council. It asks about your household, rent, Universal Credit, income, spending, hardship and health problems, and whether you’re behind with rent. Applicants must provide proof of rent and Universal Credit, add bank details where needed, sign a declaration and report changes in circumstances. Completed forms and evidence should be sent to the Council’s Benefits Section.
Please be aware that this summary has been generated using AI.
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Discretionary Housing Payment Leaflet
This document contains information about Discretionary Housing Payments, which can provide extra help with rent and other housing costs when income is not enough. It explains who can apply, how to submit an application, and the information the Council will consider, including income, essential costs, hardship and health problems. Payments may cover rent shortfalls, deposits, rent in advance or moving costs, and are usually short term. It also explains how decisions are made and how to request a review within 28 days.
Please be aware that this summary has been generated using AI.
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Discretionary Housing Payment Policy
This document contains Orkney Islands Council’s policy for Discretionary Housing Payments, which provide extra help with housing costs for people receiving Housing Benefit or the housing part of Universal Credit. It explains what costs may be covered, including rent shortfalls, deposits, rent in advance and removal costs, and what is excluded. It also sets out how to apply, how payments and backdating work, and how decisions can be reviewed.
Please be aware that this summary has been generated using AI.
It is important not to let arrears build up. If your rent is not paid in full, you may be at risk of losing your home. Contact us or Orkney Citizens Advice Bureau as soon as possible if you are struggling.
It is important not to let arrears build up. If your rent is not paid in full, you may be at risk of losing your home. Contact us or Orkney Citizens Advice Bureau as soon as possible if you are struggling.
Phone: 01856 873535
Email: housing@orkney.gov.uk or benefits@orkney.gov.uk