Examples of how benefit is calculated.

Housing Benefit

A single pensioner living in council property on Guarantee Pension Credit

  • A single lady aged 72 has no non-dependants - she lives alone in a two-bedroomed property
  • Her rent is £95 per week with no service charges
  • As she is over pension credit age, the under occupancy rules don't apply
  • So her eligible rent is £95
  • She gets Guarantee Pension Credit
  • People claiming Income Support, Guarantee Pension Credit, income-related Employment and Support Allowance or income-based Jobseekers Allowance get maximum benefit - which is based on their eligible rent
  • Her Housing Benefit is £95 per week (the amount of her 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 lady aged 47 has no non-dependants - she lives alone in a two-bedroomed property
  • Her rent is £100 per week with no service charges 
  • As she is under pension age, the under occupancy rules apply so she has one spare bedroom
  • The rent used in her benefit calculation is reduced by 14% (14% of £100 = £14)
  • So her eligible rent is £86 (£100 less £14)
  • She gets income-based Jobseekers Allowance
  • People claiming Income Support, Guarantee Pension Credit, income-related Employment and Support Allowance or income-based Jobseekers Allowance get maximum benefit - which is based on their eligible rent
  • Her 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 man has no non-dependants - he lives alone
  • His rent is £110 per week and his LHA rate is £100 per week
  • His benefit is worked out on his LHA rate of £100 
  • He gets 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
  • His 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 her own property on Guarantee Pension credit

  • A single lady aged 82 has no non-dependants - she lives alone
  • The Council Tax on her home would be £18 per week but she qualifies for 25% single person discount, which reduces her bill to £13.50 per week
  • For people of pension age, Council Tax Support is based on 100% of liability
  • So her eligible Council Tax is £13.50
  • She gets Guarantee Pension Credit
  • People claiming Guarantee Pension Credit get maximum support - which is based on their eligible Council Tax
  • Her Council Tax Support is £13.50 per week (the amount of her 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 lady aged 39 has no non-dependants - she lives alone
  • The Council Tax on her home would be £19 per week but she qualifies for 25% single person discount, which reduces her bill to £14.25 per week
  • For working age people, Council Tax Support is based on 85% of liability
  • So her eligible Council Tax is £12.11 (85% of £14.25)
  • She gets 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
  • Her Council Tax Support is £12.11 per week (the amount of her 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
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Last updated: Fri 17 September, 2021 @ 16:18