Examples of how benefit is calculated.
Housing Benefit
A single pensioner living in council property on Guarantee Pension Credit
- A single pensioner aged 72 has no non-dependants - they live alone in a two-bedroomed property
- Their rent is £95 per week with no service charges
- As they are over pension credit age, the under occupancy rules don't apply
- So their eligible rent is £95
- They get Guarantee Pension Credit
- People claiming Guarantee Pension Credit get maximum benefit - which is based on their eligible rent
- Their Housing Benefit is £95 per week (the amount of their eligible rent)
A single working age person living in council property on Income Support, income-related Employment and Support Allowance or income-based Jobseekers Allowance
- A single person aged 47 has no non-dependants - they live alone in a two-bedroomed property
- Their rent is £100 per week with no service charges
- As they are under pension age, the under occupancy rules apply so they have one spare bedroom
- The rent used in their benefit calculation is reduced by 14% (14% of £100 = £14)
- So their eligible rent is £86 (£100 less £14)
- They get income-based Jobseekers Allowance
- Working-age people claiming Income Support,income-related Employment and Support Allowance or income-based Jobseekers Allowance get maximum benefit - which is based on their eligible rent
- Their Housing Benefit is £86 per week (the amount of her eligible rent)
A pensioner couple in Housing Association accommodation, not on Guarantee Pension Credit
- A couple aged 71 and 73 live in a two bedroomed property and have no non-dependants
- Their rent is £110 per week with no service charges
- As they are over pension credit age, the under occupancy rules don't apply
- So their eligible rent is £110
- They aren't on Guarantee Pension Credit and their joint weekly income exceeds their applicable amount (the 'needs allowance' set down by the government, based on their personal circumstances) by £20
- People with excess income get benefit based on their eligible weekly rent, minus a percentage of their excess income
- For Housing Benefit the figure is 65%
| Eligible Rent | £110 |
|---|---|
| Minus 65% of excess income (65% x £20) | £13 |
| Equals weekly Housing Benefit | £97 |
A working age couple in Housing Association property, not on Income Support, income-related Employment and Support Allowance or income-based Jobseekers Allowance
- A couple aged 42 and 39 live in a two bedroomed property and have no non-dependants
- Their rent is £120 per week with no service charges
- As they are under pension age, the under occupancy rules apply so they have one spare bedroom
- The rent used in their benefit calculation is reduced by 14% (14% of £120 = £16.80)
- So their eligible rent is £103.20 (£120 less £16.80)
- They aren't on Income Support, income-related Employment and Support Allowance or income-based Jobseekers Allowance and their joint weekly income exceeds their applicable amount (the 'needs allowance' set down by the government, based on their personal circumstances) by £10
- People with excess income get benefit based on their eligible weekly rent, minus a percentage of their excess income
- For Housing Benefit the figure is 65%
| Eligible Rent | £103.20 |
|---|---|
| Minus 65% of excess income (65% x £10) | £6.50 |
| Equals weekly Housing Benefit | £96.70 |
Housing Benefit under Local Housing Allowance (LHA) rules
A single person living in a privately rented flat on Guarantee Pension Credit, Income Support, income-related Employment and Support Allowance or income-based Jobseekers Allowance
- A single person has no non-dependants - they live alone
- Their rent is £110 per week and their LHA rate is £100 per week
- Their benefit is worked out on their LHA rate of £100
- They get one of the benefits listed above
- People claiming Income Support, income-related Employment and Support Allowance, Guarantee Pension Credit or income-based Jobseekers Allowance get maximum benefit - which is based on their LHA rate
- Their Housing Benefit is £100 per week
A couple in a privately rented house, not on Income Support, income-related Employment and Support Allowance, Guarantee Pension Credit or income-based Jobseekers Allowance
- A couple have no non-dependants
- Their rent is £130 per week and their LHA rate is £105 per week
- Their benefit is worked out on their LHA rate of £105 per week
- They aren't on Income Support, income-related Employment and Support Allowance, Guarantee Pension Credit or income-based Jobseekers Allowance
- Their joint weekly income exceeds their applicable amount (the 'needs allowance' set down by the government, based on their personal circumstances) by £20
- People with excess income get benefit based on their LHA rate, minus a percentage of their excess income
- For Housing Benefit the figure is 65%
| LHA | £105 |
|---|---|
| Minus 65% of excess income (65% x £20) | £13 |
| Equals weekly Housing Benefit | £92 |
Council Tax Support
A single pensioner living in their own property on Guarantee Pension credit
- A single pensioner aged 82 has no non-dependants - they live alone
- The Council Tax on their home would be £18 per week but they qualify for 25% single person discount, which reduces their bill to £13.50 per week
- For people of pension age, Council Tax Support is based on 100% of liability
- So their eligible Council Tax is £13.50
- They get Guarantee Pension Credit
- People claiming Guarantee Pension Credit get maximum support - which is based on their eligible Council Tax
- Their Council Tax Support is £13.50 per week (the amount of their eligible Council Tax)
A single working age person living in mortgaged property on Income Support, income-related Employment and Support Allowance or income-based Jobseekers Allowance.
- A single person aged 39 has no non-dependants - they live alone
- The Council Tax on their home would be £19 per week but they qualify for 25% single person discount, which reduces their bill to £14.25 per week
- For working age people, Council Tax Support is based on 85% of liability
- So their eligible Council Tax is £12.11 (85% of £14.25)
- They get income-based Jobseekers Allowance
- People claiming Income Support, income-related Employment and Support Allowance or income-based Jobseekers Allowance get maximum support - which is based on their eligible Council Tax
- Their Council Tax Support is £12.11 per week (the amount of their eligible Council Tax)
A pensioner couple living in their home which they own outright, not on Guarantee Pension Credit
- A couple aged 73 and 75 have no non-dependants
- Their Council Tax is £20 per week
- For people of pension age, Council Tax Support is based on 100% of liability
- So their eligible Council Tax is £20
- They aren't on Guarantee Pension Credit and their joint weekly income exceeds their applicable amount (the 'needs allowance' set down by the government, based on their personal circumstances) by £30
- People with excess income get support based on their eligible weekly Council Tax, minus a percentage of their excess income
- For Council Tax Support the figure is 20%
| Eligible Council Tax | £20 |
|---|---|
| Minus 20% of excess income (20% x £30.00) | £6 |
| Equals weekly Council Tax Support | £14 |
A working age couple living in their mortgaged home, not on Income Support, income-related Employment and Support Allowance or income-based Jobseekers Allowance
- A couple aged 45 and 46 have no non-dependants
- Their Council Tax liability is £22 per week
- For working age people, Council Tax Support is based on 85% of liability
- So their eligible Council Tax is £18.70 (85% of £22)
- They aren't on Income Support, income-related Employment and Support Allowance or income-based Jobseekers Allowance and their joint weekly income exceeds their applicable amount (the 'needs allowance' set down by the government, based on their personal circumstances) by £30
- People with excess income get support based on their eligible weekly Council Tax, minus a percentage of their excess income
- For Council Tax Support the figure is 20%
| Eligible Council Tax | £18.70 |
|---|---|
| Minus 20% of excess income (20% x £30.00) | £6 |
| Equals weekly Council Tax Support | £12.70 |
A working age couple living in their mortgaged home, on Universal Credit
- A couple aged 37 and 32 have no non-dependants
- Their Council Tax liability is £30 per week
- For working age people, Council Tax Support is based on 85% of liability
- So their eligible Council Tax is £25.50 (85% of £30)
- They get Universal Credit and that award is used to calculate both their applicable amount and their income
- Their joint weekly income exceeds their applicable amount by £10
- People with excess income get support based on their eligible weekly Council Tax, minus a percentage of their excess income
- For Council Tax Support the figure is 20%
| Eligible Council Tax | £25.50 |
|---|---|
| Minus 20% of excess income (20% x £10.00) | £2 |
| Equals weekly Council Tax Support | £23.50 |
Last updated: Mon 26 February, 2024 @ 15:02