If you receive Income Support, Guaranteed Pension Credit, employment support allowance (income related) or Job Seekers Allowance (income based) you will normally get the maximum benefit, although this might be reduced due to the following:
- Non-dependant deductions
- Council Tax Banding restrictions
- Rent Service restrictions
- Under-occupancy penalty (also known as the Bedroom Tax)
- Any reduction under the Local Council Tax Scheme
If you would like to see roughly how much benefit you might be entitled to, try our Benefit Calculator.
How do we work it out?
If you are not entitled to any of the benefits listed above, your entitlement 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.
When working out how much you are entitled to, 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
You must include all your incomes on the claim form, or tell us if you receive them at some time in the future.
- Benefits such as; Attendance Allowance or Disability Living Allowance, Child Benefit, War Disablement or War Widow Pensions are not used to calculate the final amount but can lead to you getting more Housing or Council Tax Benefit.
- 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.
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 and TESSA's will all 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 entitlement and, as a result, are suffering hardship you may also be able to receive discretionary housing payments
Second Adult Rebate
If you are of pensionable age, 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 in receipt of IS, JSA(Income Based), Pension Credit or ESA (IR) - council tax reduced by: 25%
- Second adult Gross income : less than £215.00 per week – council tax reduced by 15%
- Gross income: £215.00 to £279.00 per week – council tax reduced by 7.5%
Last updated: Wed 4th March, 2020 @ 16:51