Labour: 20,000 tenants wrongly charged 'bedroom tax'

The Labour party is claiming more than 20,000 councils tenants have been wrongly paying the so-called "bedroom tax" because of a Government error.

Labour claims thousands of tenants have been wrongly paying the so-called "bedroom tax." Credit: Press Association

Shadow work and pensions secretary Rachel Reeves says that 194 councils out of 346 who replied to a Freedom of Information request showed that 21,500 people have overpaid.

The coalition says it is working on fixing the loophole which is causing the errors.

Work and Pensions Secretary Iain Duncan Smith challenges Labour's figures, claiming the amount of tenants who have overpaid was likely to be around 5,000.