Under-occupancy penalty

The under-occupancy penalty (also known as the under occupation penalty, under-occupancy charge, under-occupation charge or size criteria) is a reform contained in the British Welfare Reform Act 2012 whereby public-housing (also called social housing) tenants with rooms deemed to be "spare" face a reduction in Housing Benefit, resulting in them being obliged to fund this reduction from their incomes or face rent arrears and potential eviction by their landlord (be that the local authority or a housing association). The under-occupancy penalty has been widely branded the Bedroom Tax, especially by critics of the changes who argue that they amount to a tax because of the lack of social housing (or in some areas, any rented accommodation) for affected tenants to downsize to (and the refusal to accept that they should have to take lodgers in). The penalties are also criticised as having a disproportionate impact on disabled people.