Your benefit award explained

It is very important that you read your benefit letters carefully as it gives the information that is required.

Applicable amount

This varies depending on:

  • whether you are single or live with a partner,
  • whether you have children,
  • your age and the ages of others living with you in your household,
  • whether you or anyone in your household has a disability,
  • whether you are caring for anyone else.

'Income' includes things like:

  • earnings,
  • social security benefits,
  • tax credits,
  • occupational pensions and
  • even money from friends or relatives. We may also assume you receive an income from your capital savings - if you have any.

Capital and Savings include:

  • Bank/Building Society Accounts,
  • savings, stocks and shares,
  • PEPs,
  • Unit Trusts,
  • ISA's,
  • National Savings Certificates, premium bonds,
  • redundancy pay and properties/investments that you own/part own.

If you are of working age the first £6,000 of any capital and savings you and your partner may have is ignored. For every £250 of capital and savings you have that is above £6,000 we must assume you have a weekly income of £1. This is called 'tariff income' but is usually indicated on your benefit award letter as 'income from savings'.

If you, (or in the case of a couple,) or your partner are of pensionable age, the first £10,000 of your capital will be ignored. For every £500 of capital and savings you have, above £6,000 we have to assume a weekly income of £1.

If you or your partner are of working age and have capital of more than £16,000 you will not get Housing Benefit or Council Tax Support.

Non-Dependent deductions are taken if you have friends, relatives or anyone living in your home, (this does not include your partner), who are over the age of 18. You may get less Housing Benefit, as we expect them to contribute towards your rent and council tax. The contribution will depend on their circumstances.