How benefit is calculated

Housing benefit and council tax benefit is calculated by comparing how much income you have got coming in by how much money the Government states you need to live on. The amounts are known as personal allowances and reflect the basic living needs of the claimant and any family members. If you/your partner or your children are disabled, you may be able to get more help. Try using our benefit calculator to see if you will qualify for benefits. 

What is income?

Your income is all the money that comes to you or your partner including wages, benefits, tax credits, pensions, rental incomes and all other money you receive regularly. We do ignore some of your income and the amount we can ignore depends upon your circumstances.

We also include £1 for every £250 capital and savings you have above £6000 if you are under 60 and £1 for every £500 capital and savings you have above £10,000 if you are over 60. We cannot pay benefit if you have more than £16,000 in capital and savings. 

What income don't we count?

There are some incomes that we do not count but still need to know about, as they increase the amount that the Government says you need to live on.  This includes child benefit, Disability Living Allowance, Attendance Allowance, and War and War Widows Pensions. 

What is capital?

We include any money you have in bank and building society accounts and even any cash you have. We also count as capital all shares, investments, bonds and property. Property will include property that you rent out, time share and property bonds but does not include the home that you live in. 

Will my benefit be affected if there are other adults in the household?

If you have adults living with you (people over 18 years of age), the Regulations require a set amount to be deducted from your benefit. This is because the Government says that these people should be paying you something towards the upkeep of the home. The amount to be deducted depends on the income and circumstances of the adult(s). In certain circumstances there is no deduction.