How we calculate Housing Benefit and Council Tax Reduction

For benefit claim purposes, most savings, investments and assets owned by you and your partner we treat as 'capital'. Examples of the most likely sources are:

• cash savings
• current accounts - even if you only use it to get things paid into it, like wages, a pension or you use it to pay bills
• money in a bank, Post Office, or building society account or Credit Union account
• money in savings schemes
• National Savings Certificates
• Premium Bonds
• stocks and shares, bonds and other investments
• property or land

What doesn't count as capital

This includes:

• personal possessions
• certain business assets, if you are still working in the business
• surrender values of Life Policies
• sale proceeds of your home. This is for up to six months if you intend to buy another home
• money from insurance claims in respect of loss or damage to home or personal possessions. This is for up to six months if used to replace or repair
• any Social Fund payment

You should make enquiries to clarify the situation if you are doubtful about anything.

How we calculate your capital tariff

In most cases if you and your partner have savings or capital of more than £16,000, you cannot get Housing Benefit.

If you, and your partner have £6,000 or less, this will not affect your claim. If you have reached the qualifying age to claim State Pension, this figure is £10,000.

If you and your partner are working age and have between £6,000 and £16,000, this affects how much Housing Benefit you will get. For every £250 (or part of £250) you have over £6,000, we add £1 to the money we count each week. We do this when working out your benefit. We call the money that we count from your capital ‘Tariff Income’. We do not count any actual interest you get from savings and capital.

If you or your partner are state pension age and have between £10,000 and £16,000, this affects how much Housing Benefit you will get. For every £500 (or part of £500) you have over £10,000, we add £1 to the money we count each week. We do this when working out benefit.