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Calculating Entitlement

If you receive benefits

If you are in receipt of any of the benefits listed below, you will normally be entitled to maximum council tax reduction and or housing benefit.

  • Income support
  • Job seekers' allowance (income based)
  • Employment and support allowance (income based)
  • Pension credit guarantee credit

This means that all of your eligible rent will be covered by housing benefit depending on your local housing allowance rate. Not all of your council tax bill will be covered by council tax reduction and you will need to pay something depending on your circumstances.

Non-dependent deductions

However, there may be deductions made for any non-dependent that you have living with you. A non-dependent is someone over the age of 18 who lives with you on a non-commercial basis.

For example adult sons or daughters, elderly parents, other family members or friends.

Housing benefit and council tax reduction will normally be reduced if a non-dependent lives in the household. There is an expectation that non-dependents will make a contribution towards their costs including rent, council tax and food, etc.

The amount they pay towards the above is not taken into account and instead standard weekly deductions are made from the claimant's housing benefit and council tax reduction entitlement, shown in the table below:

Weekly housing benefit non-dependent deductions 2020
Non-dependent deductions Housing benefit deductions April 2020
Aged 25 or over and on IS/JSA (IB), ESA (IR) main phase £15.85
Aged under 25 and on IS/JSA (IB), ESA (IR) assessment phase Nil
Aged under 25 and on ESA (IR) main phase £15.85
In receipt of Universal Credit without any earned income Aged under 25 Nil
In receipt of Universal Credit without any earned income Aged 25 or over £15.85
In receipt of Job Seekers Allowance (contribution based) £15.85
In receipt of Pension Credit (guarantee or savings credit) Nil
Aged 18 or over and works 16+ hours per week and has:
Gross income less than £149 £15.85
Gross income not less than £149 but less than £217 £36.45
Gross income not less than £217 but less than £283 £50.05
Gross income not less than £284 but less than £377 £81.90
Gross income not less than £377 but less than £469 £93.25
Gross income not less than £469 £102.35
Any other non-dependant (even nil income) £15.85

 

Weekly Council Tax Reduction non-dependent deductions 2020
Non-dependent deductions Council Tax Reduction deductions April 2020 - pension age claimants Council Tax Reduction deductions April 2020 - working age claimants
Aged 25 or over and on IS/JSA (IB), ESA (IR) main phase Nil Nil
Aged under 25 and on IS/JSA (IB), ESA (IR) assessment phase Nil Nil
Aged under 25 and on ESA (IR) main phase Nil Nil
In receipt of Universal Credit without any earned income Nil Nil
In receipt of Job Seekers Allowance (contribution based) £4.05 £10.00
In receipt of Pension Credit (guarantee or savings credit) Nil Nil
Aged 18 or over and works 16+ hours per week and has:
Gross income less than £217.00 £4.05 £10.00
Gross income not less than £217.00 but less than £377.00 £8.25 £10.00
Gross income not less than £377.00 but less than £469.00 £10.35 £10.00
Gross income not less than £469.00 £12.40 £10.00
Any other non-dependant (even nil income) £4.05 £10.00

No non-dependant deductions will be made if the claimant or their partner:

  • Is blind or has recently regained their sight
  • Receives the care component of Disability Living Allowance payable at any rate
  • Receives the daily living component at either the standard or enhanced rate of Personal Independent Payment
  • Receives Attendance Allowance payable at any rate

If you don't receive benefits

If you do not receive any of the benefits listed above, then the council has to compare your weekly income and any savings you have (if you and your partner have joint capital of more than £16,000 you will not normally be able to receive housing benefit).

For council tax reduction for working age claimants, the upper savings limit, is £10,000. For claimants who have reached the qualifying age for state pension credit, the upper savings limit remains at £16,000. 

Applicable amounts

Applicable amounts vary for different situations, which is one reason why it is very difficult to compare your benefit entitlement with a friend or neighbour. It depends on:

  • Your age
  • Whether or not you have a partner or children
  • If someone in your household is disabled

Your applicable amount is made up of personal allowances (for general needs), and premiums (for special needs). Your applicable amount, and how it has been calculated, is always shown on your decision letter. You need to check this as carefully as you check the income and capital that we have used when working out your benefit entitlement, and ask us to explain anything you do not understand or that you think may be wrong.

You can use the benefits calculator to do your own 'trial calculation'. You can also see when you will reach state retirement pension age.

We will need to see evidence of your identity, income and capital. If you are a private tenant we will need to see proof of your rent. Details of exactly what is required can be found in the benefit claim form. Any entitlement will normally start from the Monday following the date you submit your claim form online.

In some circumstances we may be able to pay your claim from an earlier date than the date we received your claim form. This is known as backdating and you will need to show 'good cause' for not claiming earlier. 

How will my benefit be paid?

  • If you are a council tenant your housing benefit will be credited directly to your rent account every week
  • If you rent your home from a private landlord or housing association, housing benefit can be paid by transfer to your bank account via Banks Automated Clearing System (BACS), for which we will need your bank details. This payment will be made fortnightly in arrears, so you will receive this payment at the end of the fortnight it relates to
  • In certain circumstances, such as you are more that eight weeks in arrears with your rent, we may pay your landlord four-weekly in arrears if you are a renting from a private landlord or housing association
  • Council tax reduction will be credited directly to your council tax account in one lump sum
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