Bedroom Tax - Am I being dull?

I might just be having an attack of the Monday Mornings here, but I’ve got to ask because DWP’s info is wonderfully unclear.

Is the 14%/25% reduction for social housing tenants applied to eligible rent (i.e. pre-calculation) or benefit entitlement post-calculation?

http://dwp.gov.uk/docs/social-sector-housing-under-occupation-wr2011-ia.pdf suggests the former, but the DWP’s factsheet for claimants suggests the latter http://dwp.gov.uk/docs/factsheet-hbsssc1.pdf.

I can evisage cases where this makes a difference, not just to the amount of benefit, but to eligibility itself, particularly in cases with earned income.

That’s a good point!

From my understanding of the draft regs the 14 or 25 % is deducted from the eligible rent. Which makes that factsheet really quite misleading.

Draft regs:
http://www.legislation.gov.uk/ukdsi/2012/9780111525784/pdfs/ukdsi_9780111525784_en.pdf 

Jane