HOLYROOD will be able to decide on the bedroom tax and under what circumstances it should apply.

For people receiving housing benefit, Holyrood will now be able to choose what percentage of the benefit (if any) is removed for people with a spare bedroom in their homes.

Scottish ministers could choose to set the rate to 0%, effectively scrapping the controversial deductions, or decide what groups of people should not be charged for having an extra bedroom.

Holyrood will have the power to make decisions on whether the level of rent social sector landlords charge is considered excessive.

The report also states: "For private sector tenants they would be able to vary the local housing allowance rates by varying the manner in which the maximum level of housing support is set."

Universal Credit will remain reserved to Westminster and applied by the Department of Work and Pensions across the UK.

The policy will be rolled out starting next month but once the powers are devolved the Scottish Government will have flexibility to who in a household is paid the single payment benefit