How is benefit worked out?

MAXIMUM BENEFIT
If you get one of the following:

  • Income support
  • Income-based Job Seekers' Allowance
  • Income-related Employment and Support Allowance
  • Pension Guarantee Credit

you will get the maximum benefit.

For Council Tax, the maximum benefit you can get will be the amount of your Council Tax less any charges for non-dependants.

For Housing Benefit, this will be one of the following:

  • if you are a private tenant and your Housing Benefit is based on Local Housing Allowance, you will get the Local Housing Allowance rate to which you are entitled.
  • if you are a private tenant and your Housing Benefit is not based on Local Housing Allowance you will get the amount set by the Valuation Office Agency, less any charges for meals;
  • if you are a housing association tenant or a council tenant you will get the amount of your rent

less any charges for non-dependants.

ALL OTHER CASES
We work out your benefit by comparing your weekly income with your applicable amount. An applicable amount is the minimum weekly amount set by the Government for a household to live on, apart from rent and Council Tax.

If your income is less than, or the same as, your applicable amount, you will get the maximum benefit.

If your income is more than your applicable amount:

  • your Local Housing Allowance will be reduced by 65% of the difference between the two amounts.
  • your Council Tax will be reduced by 20% of the difference between the two amounts.

For example:
Your income is £100. Your applicable amount is £75, so the difference is £25.
Your Local Housing Allowance is £80 per week. Your Council Tax is £20 per week.

Your Housing Benefit will be £63.75 per week [£80 reduced by £16.25 (65% of £25)].

Your Council Tax Benefit will be £15 [£20 reduced by £5 (20% of £25)].

You can use our Benefits Calculator to give you an idea of the amount of Housing Benefit you might get, or you can ring 01395 517446 and speak to one of our customer service officers.

Page last updated on 13 September 2011