How is benefit normally worked out?

If you receive either Income Support, Guaranteed Pension Credit or Job Seekers Allowance (Income Based) you will normally get maximum benefit, although this might be reduced due to the following:

• Non-Dependant Deductions
• Council Tax Banding restrictions
• Rent Service restrictions

If you are not entitled to any of the benefits listed above your benefit will be worked out based on the income and savings of you and your partner if you have one. The savings and income of any dependant children may also affect the calculation.Your income, after any appropriate disregards, is then compared with amounts set by the Government called Applicable Amounts.When working out your applicable amount we look at:

• You and your partners age
• The type of income you receive (i.e. disability benefits, War Pensions etc.)
• Any children for whom you get Child Benefit

Income

The calculation of entitlement to benefit uses income you and your partner receive:

You must include all your incomes on the claim form. Benefits like Attendance Allowance or Disability Living Allowance and Child Benefit, are disregarded but can lead to you getting more Housing or Council Tax Benefit. You must declare them on your claim form or tell us if you receive them at some time in the future.

Charnwood Borough Council ignores payments of War Disablement or War Widow Pensions but you must still tell us if you receive them.

If you pay into a pension scheme we can ignore 50% of the contributions you make from your wages or through a personal contribution scheme.

If you pay for Childcare and you or your partner work for more than 16 hours per week some of your childcare costs can be deducted from your income.

Savings

We must also look at the amount of savings and other capital you and your partner may have. Money held in Banks, Building Societies, Income bonds, National Savings Certificates, Shares. ISA's, TESSA's will be counted.Any property (other than the one you live in) or land may be counted as capital as well. You must include all details on your claim form and we will tell you how it is to be treated.The first £6,000 of any savings you have will be ignored. However for every £250, or part of £250, you have above £6,000 we will assume £1 per week as income. The savings for pensioners are treated slightly differently. From the 2nd November 2009 the first £10,000 of any savings will be ignored. However for every £500, or part of £500, you have above £10,000 we will assume £1 per week as income.

If you do not receive full benefit and, as a result, are suffering hardship you may also be able to receive Discretionary Housing Payment

Second Adult Rebate

Second Adult Rebate is calculated using the gross income of your non-dependants. Your Council Tax will be reduced by a percentage dependant of the amount and type of their income.

Second Adult Rebate (CTB) 2008/09

If you want to see roughly how much benefit you might get try our Benefit Calculator