Capital and Income
This page details how your capital and income can affect your claim.
Do savings affect my claim?
You must tell us about all savings, bank accounts, investments and property which you have in this country and abroad so that we can make sure your claim is correct. This is known as capital.
Capital includes all money, investments, property or savings, which you or your partner may have. It includes all bank, building society and post office accounts, stocks and shares, cash and even money held by someone else on your behalf or owed to you.
How is it treated?
It is valued at the current market value less 10% where there is a cost relating to the sale, such as shares. The value of any outstanding loan or mortgage will be allowed. Please use the GOV.UK State Pension calculator to find out if you have reached State Pension Credit Age as capital is treated differently depending on how old you are.
How will my capital affect my claim?
People of Working Age
The upper capital limit is £16,000 for Housing Benefit purposes and £6,000 for Council Tax Support purposes.
- The first £6,000 does not affect your claim
- For every £250 (or part) over this amount, £1 will be used as income for Housing Benefit purposes
- If you have over £6,000 you will not qualify for Council Tax Support
People of State Pension Credit Age
The upper capital limit is £16,000 for Housing Benefit and Council Tax Support purposes.
- Some customers in receipt of Pension Credit Guarantee amount may have more than £16,000 savings and still qualify for benefit
- The first £10,000 does not affect your claim
- For every £500 (or part) over this amount £1.00 will be used as income.
What is not included?
Some forms of capital can be ignored for a short period of time or some will be ignored for ever. Some of these may include:
- Your home where you live
- Your previous home if it is up for sale
- Any property you own where an elderly or disabled relative lives
- Any property where work is being done to make it fit to live in
- A future interest in property. This is where you will only get the property when an event happens
- If you are taking legal action in order to occupy your home
- Money from the sale of your house which is to be used for the purchase of another property
- Arrears of benefits
- Special Government payments, such as former prisoners of war and CJD compensation payments.
How will you look at my other income?
As Housing Benefit and Council Tax Support are means tested, all income must be taken into account when a claim is made. This is income you or any partner receive or income that someone else receives on your behalf.
The total income of both you and your partner will be considered and taken into account when we work out how much help you may be entitled to.
Income which is not counted
Most income is counted in full, whilst some income is only counted in part and others may not be counted at all. Examples of income which is not counted are a War Widows Pension, War Disablement Pension or a Local Authority fostering allowance.
Disability Living Allowance, Personal Independence Payments and Attendance Allowance are also not counted when we work out your income. If you have any one of these allowances it may mean that you could get more benefit, so please make sure you tell us about all benefits which you receive immediately.
As mentioned in further information regarding your earnings, if you receive a wage or salary, some of your earnings will be disregarded when we calculate your benefit.
Deductions from benefits or wages
Usually no allowance can be made for deductions from benefits or wages. Examples of such deductions are those made by the Child Support Agency, an attachment of earnings or money stopped out of your benefit to recover a loan or overpayment.
- From Property - If you are receiving an income from renting out a property which you own you must tell us about this immediately. You should also tell us about any mortgage repayments or any other expenses incurred in connection with letting out the property. We may then be able to make an allowance against some or all of these costs!
- From Boarders - £20.00 will be disregarded from the rent you receive and then 50% of what remains will be used as unearned income when we calculate your Housing Benefit and Council Tax Support. (A boarder is someone who is liable to pay rent to you and the amount he or she pays includes something for meals).
- From Tenants/subtenants - £20.00 will be disregarded from the rent and rest counted as unearned income.
Maintenance and Child Benefit
If you receive maintenance for a child included in your household, all of this will be disregarded when we work out your income. You must still notify us of these payments. Child benefit is also disregarded but you still need to tell us if the number of children in your household changes.
Some charitable payments such as those from The McFarlane Trust are disregarded in full, whilst others are partially disregarded or may be counted in full. We will need to have all the details if you are receiving such a payment.
This list does not cover everything, so please ensure that you tell us about all income.