How your benefit is worked out
If you receive Income Support, Job Seekers Allowance (Income Based), Pension Credit – Guarantee Credit or Employment Support Allowance (Income Related) you will receive benefit at the level of your maximum rent or council tax, less any rent restrictions or non-dependant deductions.
If you do not receive any of these benefits, we must compare the income you have coming in, with what the Government says you need to live on. We assume an income from any savings you have over £6,000, the way we work this out will depend whether you are under or over 60. If you have over £16,000 you will not qualify (unless you are in receipt of Pension Credit - Guarantee Credit).
We work out your needs using the personal allowances and premiums for you, your partner if you have one and any dependants you have in your household.
We will ignore some of your earnings when working out your income. The amount will depend on whether you are a couple, single or lone parent and how many hours you work. We will also ignore some of your earnings if you pay a registered child minder.
Some other incomes and savings are ignored when we work out your claim. We will tell you what we have done when we make our decision.
If your income is greater than your needs you will have to pay towards your rent or council tax costs. You are expected to contribute 65% of your excess income towards your rent (plus any restricted amount) and 20% towards your council tax (plus any restricted amount).
Page updated: 17 Nov 2011
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