How your capital (savings and investments) affects Housing Benefit and Council Tax Support

If you claim Housing Benefit or Council Tax Support, any capital or savings could affect the amount you receive.

Any capital or savings under £16,000 will be ignored if you receive any of the following benefits:

  • Income Support
  • income-based Job Seekers Allowance
  • Income Related Employment and Support Allowance 

Or

  • Guaranteed Pension Credit 

If you are not receiving one of these benefits, we will look at the savings you, your partner and any dependent children hold. 

How we calculate capital

The rules about calculating capital depend on whether you are working age or pension age. 

The capital limit for both working age and pension age is £16,000.

Working age

Any capital between £6,000 and £16,000 will have to pay a capital tariff income. For every £250 over £6,000 is £1 capital tariff income. 

Example:

Your household capital is £8,652.00. This is £11 capital tariff income. This £11 will be added to your weekly income when calculating your Housing Benefit and Council Tax Support.

Pension age

Any capital between £10,000 and £16,000 will have to pay a capital tariff income. For every £500 over £10,000 is £1 capital tariff income. 

Example:

Your household capital is £13,268.00. This is £7 capital tariff income. This £7 will be added to your weekly income when calculating your Housing Benefit and Council Tax Support.

What counts as capital?

  • property other than the one you live in
  • capital that someone else is looking after for you
  • some payments of income
  • some payments made in instalments
  • capital held outside of the UK or not held in sterling
  • business assets when self-employment has ended
  • any company you own
  • any trusts
  • some compensation payments after a certain amount of time

What are savings?

Savings include:

  • cash
  • bank, Post Office or building society accounts
  • Premium Bonds
  • savings certificates
  • stocks, shares and bonds

You must tell us of any capital when applying for Housing Benefit and Council Tax Support and any changes to your capital when they happen. You are responsible for repaying any overpayment caused by not telling us about your capital and any changes to your capital that could affect the amount you receive. 

You could also be underpaid if your capital has reduced and you have not told us.