Determining the income and capital applicable to your claim
If you are in receipt of Jobseekers Allowance (income based), Income Support, Guaranteed Pension Credit or Employment Support Allowance (income related), this section does not apply to you as you will receive maximum Housing and Council Tax Benefit.
What do you consider to be my income?
- Yours and your partner’s earnings
- Earnings from self-employment (please see our self-employed section)
- Certain State Benefits
- Assumed income derived from capital between £6,000 and £16,000, £10,000 and £16,000 for pensionable age claimants
- Rent received from a sub-tenant or boarder in your home.
We disregard these incomes from the assessment of your income:
- Certain State Benefits, most notably Disability Living Allowance and Attendance Allowance
- Rent payments from a non-dependant in your home, although we may take a non-dependant deduction from the amount of benefit you are entitled to, please see our section, “what affect does a non-dependant have?”
- Fostering payments
- Charitable or Voluntary payments received.
Please note that although these incomes are disregarded in the determination of your benefit we will still need to see proof of them so that we can make an accurate decision.
How will you determine my earned income?
Based upon the information you supply on your application form, and supply to us as evidence of your income, we will work out your average weekly income. This figure will be net of deductions for tax, national insurance and half of your pension payments.
It is important to supply the Council with a minimum of five weeks or two months income details, and that the information is reflective of your current income.
For people with earned income we may also disregard some of your income from our assessment, in most cases this will be £5.00 per week for single claimants and £10 per week for couples. There a number of other higher disregards for lone parents, certain people who are sick or disabled, and for those in special occupations. We will work out whether you are entitled to these disregards based upon the information you supply to us. Only the highest rate of these disregards are applied.
There are two additional disregards that you might be entitled to dependant upon your circumstances. These disregards are applied to your claim in addition to those mentioned in the earlier paragraph.
- Child Care Disregard – Up to £175.00 (for one child) or £300.00 (for two or more children) can be disregarded from your income if you and partner are in remunerative work, or if you or your partner, are incapacitated whilst the other is in remunerative work. Single parents should also be in remunerative work to get this disregard
- Additional earnings disregard – there are many conditions that allow for the award of this disregard therefore it is not possible to list them here. This additional disregard is worth £17.10 per week.
How will you determine all my income?
If you are in remunerative work we will add to your weekly net earned income to any benefits or tax credits that you receive, any other forms of income you have, and any income derived from your capital (if it is between £6,000 and £16,000). This will then give your weekly assessed income.
If you are on State Benefits a similar calculation will be done except there will be no earned income calculation.
How does the amount of capital I have affect my claim?
The Upper Limit
If you are under the qualifying age for Pension Credit or you are solely in receipt of Savings Credit, the upper limit for the amount of capital that you and your partner can have to be entitled to claim Housing and Council Tax Benefit is £16,000.
The Lower Limit
If you and your partner have less than £6,000 capital assets, the Council will ignore this amount when calculating your entitlement to Housing and Council Tax Benefit. Please note that the Council are still required to verify that you have less than this amount so you will need to provide us with proof of your capital.
I have capital between £10,000 and £16,000.
If you are of pensionable age and you and your partner have over £10,000 but not more than £16,000, we will treat you as having an income from your capital equivalent to £1 per week for each multiple of £500 (rounded up to the next £500), between £10,000 and £16,000.
If you are of working age and you and your partner have over £6,000 but not more than £16,000, we will treat you as having an income from your capital equivalent to £1 per week for each multiple of £250 (rounded up to the next £250), between £6,000 and £16,000.
This income is known as tariff or assumed income from capital.
For a pensionable age couple having £10,520, their assumed income from capital figure will be £2 per week. This will be added to your assessed weekly income.
For a working age couple having £10,520, their assumed income from capital figure will be £19 per week. This will be added to your assessed weekly income.
So what do you consider to be capital?
Capital includes cash, current accounts, other bank, building society and post office accounts, unit trusts, ISAs, TESSAs, National Savings Certificates, shares, premium bonds and property, other than the home you live in, and land that you own.
It is important to supply the Council with up to date evidence of all your capital assets. We will need to see bank and building society account books and statements showing at least two months worth of transactions in order to determine your claim.