Brief capital and income rates for: Income Support, Jobseeker's Allowance income based, Employment and Support Allowance (income related), Housing Benefit, Council Tax Benefit and Social Fund capital rules. The rules are different for Tax Credits and Pension Credit
Page contents
Capital rules
- Capital limits
Income rules:
- Earnings disregards
- Other income disregards
Social Fund capital
See also
Basic benefit rules
How to calculate a means tested benefit
Note The capital rules for Social Services charging rules are different - contact Social Services for details
Mostly, if a person has capital above the higher limit, s/he is not entitled to any means tested benefits at all. Capital below the lower limit is ignored.
Tariff income rule
Capital between the lower and higher limits is treated as producing income at the rate of £1 for each £250 (or part of £250) above the lower limit. For HB/CTB this is £500 for people aged 60 and over and not on ESA(IR)/IS/JSA-I.
| | 2008/9 | 2008/9 | 2007/8 | 2007/8 |
|---|
| HB/CTB (age under 60) | 6,000 | 16,000 | 6,000 | 16,000 |
| HB/CTB (age 60+) | 6,000 | 16,000 | 6,000 | 16,000 |
| HB/CTB (aged 60+ and on PC - Guarantee) | capital ignored | capital ignored | capital ignored | capital ignored |
| ESA(IR)/IS/JSA-I where claimant and partner aged under 60 | 6,000 | 16,000 | 6,000 | 16,000 |
| ESA(IR)/IS/JSA-I where claimant or partner aged 60 or over (and not on PC) | 6,000 | 16,000 | 6,000 | 16,000 |
| ESA(IR)/IS/JSA-I where claimant permanently in residential care | 10,000 | 16,000 | 10,000 | 16,000 |
| Child's limit - if a child has capital over the limit, no benefit is payable for that child - does not apply for HB and CTB or if no CTC payable | - | 3,000 | - | 3,000 |
| | Lower £ | Upper £ | Lower £ | Upper £ |
There are many different types of income e.g. earnings & other benefits. When calculating means tested benefits, some are taken into account in full, some are partly taken into account, and some are ignored. These disregards include:
| | 2008/9 | 2007/8 |
|---|
| Per couple | 10.00 | 10.00 |
| Lone parent: | | |
| ESA(IR)/IS/JSA-I/ | 20.00 | 20.00 |
| HB/CTB | 25.00 | 25.00 |
| Receiving carer's/disability premium/ESA main phase component | 20.00 | 20.00 |
| For HB/CTB only: Additional earnings disregard (e.g. work 16/30 hours a week) | 16.05 | 15.45 |
Childcare costs (HB/CTB only)
one child - up to a maximum of | 175.00 | 175.00 |
| two+ children - up to a maximum of | 300.00 | 300.00 |
| Employment and Support Allowance (income related) permitted work | | |
| Earnings limit - higher | 92.00 | |
| Earnings limit - lower | 20.00 | |
| Per person | 5.00 | 5.00 |
| 2008/9
| 2007/8
|
|---|
| Child Tax Credit | | |
| For ESA(IR)/IS/JSA-I, or | ignored | ignored |
| For HB/CTB & 60+ | ignored | ignored |
| Maintenance - for HB/CTB/PC | ignored | 15.00 |
| Maintenace - for ESA(IR)/IS/JSA-I | 20.00 | 10.00 |
| Widowed Parents'/Widowed Mother's Allowance | | |
| ESA(IR)/IS/JSA-I/PC | 10.00 | 10.00 |
| HB/CTB | 15.00
| 15.00 |
| Armed forces or War Pension, War Widows/Widowers: | | |
| HB/CTB | | |
| Newcastle | ignored | ignored |
| Standard rate | 10.00 | 10.00 |
| ESA(IR)/IS/JSA-I/PC | 10.00 | 10.00
|
| Voluntary/charitable payments | | |
| ESA(iR)/IS/JSA-I | ignored | ignored from Oct 2006 |
| HB/CTB | ignored | ignored |
| Disability Living Allowance/Attendance Allowance | ignored | ignored |
| Child Benefit | | |
| Child under one and not on Child Tax Credit (CTC) | 10.50 | 10.50 |
For ESA(IR)/IS/JSA-I & on CTC, or for HB/CTB & 60+ | ignored | ignored |
For Community Care Grants and Budgeting Loans the amount of the grant or loan will be reduced pound for pound by capital over £1,000, or £2,000 if the claimant or partner is aged 60 or over (amounts were £1,000 and £2,000 in 2007/8).
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