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Under-Occupancy Penalty (Report) Bill

A Bill to require the Secretary of State to report to Parliament on the merits of repealing those provisions of the Welfare Reform Act 2012 which provide for persons to be paid reduced rates of housing benefit or universal credit because their accommodation is deemed to be under-occupied.

Originating House

House of Commons

Parliament last updated

2 November 2023

In Plain English

AI-generated

May contain errors — check source documents for definitive information.

This Bill would require the Secretary of State to report to Parliament on whether the under-occupancy penalty in the Welfare Reform Act 2012 should be repealed. The penalty reduces housing benefit or universal credit for households deemed to have more bedrooms than needed. It does not repeal the rule itself; it asks Parliament to consider the merits of repeal based on the government’s assessment.

Key Points

  • Requires a government report to Parliament on the merits of repealing the under-occupancy provisions of the Welfare Reform Act 2012.
  • The under-occupancy penalty reduces housing benefit or universal credit for households deemed to be under-occupying their accommodation.
  • The Bill has reached the 1st reading in the House of Commons (introduced 2022-06-20).
  • The Bill does not itself repeal the penalty; any repeal would require further legislation after the report.
  • Covers housing, welfare and technology policy areas.

Progress

As of 20 June 2022, the Bill is at the 1st reading in the House of Commons; no further stages have yet taken place.

Who is affected?

Recipients of housing benefitUniversal Credit claimantsRenters in social and private housing affected by under-occupancy rulesLow-income households with reduced housing costs

Generated 21 February 2026

Bill Stages

1st readingCommons

20 Jun 2022

2nd readingCommons
Committee stageCommons
Report stageCommons
3rd readingCommons
1st readingLords
2nd readingLords
Committee stageLords
Report stageLords
3rd readingLords
Royal Assent

Updates & Documents

News (1)

Under-Occupancy Penalty (Report) Bill

23 Mar 2023

The 2022-2023 session of Parliament has prorogued and this Bill will make no further progress.

Parliamentary Votes (0)

No recorded votes for this bill yet.