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  • Benefits contact details
  • How is Benefit Calculated?
  • Non Dependant Deductions
  • Service Statement

How is Benefit Calculated?

We will calculate your Council Tax Benefit and/or your Housing Benefit (you may be entitled to both) using the money you and your partner (if applicable) have coming into the property. This will include earnings, state benefits, tax credits, and occupational pensions.

In addition we need to know about all savings you and your partner hold. If you are aged under 60 years the first £6,000 of savings /capital is disregarded but then £1 is added to your weekly income for every £250 in savings over the £6,000. A person with savings in excess of £16,000 does not qualify for any benefit.

If you are over 60, the first £10,000 of savings/capital is disregarded but then £1 is added to your weekly income for every £500 in savings over £10,000. A pensioner with savings in excess of £16,000 would only qualify for benefit if they were in receipt of Pension Credit Guaranteed Credit. (There is no upper capital limit in Pension Credit Guaranteed Credit.)

Other factors which can affect housing benefit and council tax benefit are age, the ages and size of your family, whether you or any of your family are disabled and whether anyone who lives with you could help with the council tax. For further information see Non Dependant Deductions

The amount of Housing/Council Tax Benefit is calculated by comparing your net weekly income with your "applicable amount" (i.e the amount the Government considers you need to live on). For every £1 that your income is above the Government's needs level you lose 65p from maximum Housing Benefit and 20p from maximum Council Tax Benefit.

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Changes in your circumstances

If you receive a Pension Credit, you will have to tell the Pension Service about a change in your income or capital. The Pension Service can be contacted on 0845 6060265

The Pension Service will then tell the Council about the change in your income. You will still have to tell the Council about changes to your:

• .tenancy including the amount of rent charged
• changes to any non-dependant(s) moving in or out of the property or changes in their income(s)
• any absence from home (e.g. hospital)
• changes to dependant children
• changes to Child Tax Credit
• changes to Child Benefit
• capital exceeding £16,000 (only if you receive a savings credit)

If you do not receive a Pension Credit, you must inform the Council straight away, in writing, if any of the following changes occur:

• Changes in your income and / or your partner's income.
• Anyone living with you not receiving full time education reaching 18 years of age.
• Anyone moves into or out of your household.
• Any person living in your household who starts to receive or stops receiving Income Support or Job seekers Allowance.
• Any child who ceases to be in full time education.
• If a child takes up full time work.
• If you change your address.
• If you and / or your partner go into hospital.
• If your rent changes.
• If you have a change in savings/capital.

Any changes of circumstances must be notified to the Council straight away. If the change is one which is advantageous to you, the change should be reported within a month. A change can only be backdated if exceptional circumstances apply.