How it is all worked out


If you are in receipt of Income Support, Job Seeker’s Allowance (Income Based), Employment Support Allowance (Income Rate), or Pension Credit (Guarantee), you will receive full help with your Housing Benefit, subject to either the Local Housing Allowance limit, Rent Service restriction and/or any non-dependant deduction. You will receive full Council Tax Reduction, subject to any non-dependant deduction.

If you are not receiving Income Support or Jobseeker's Allowance (income-based), your Housing Benefit and Council Tax Reduction will be worked out based on your financial and family circumstances. 

We will add up all your allowances and premiums (see What you need to live on) to make a total called your Applicable Amount.

We then add up all your earned income and unearned income, (see Your Income) and the income from any savings (see Savings and capital) to establish your Total Income.

If your total income is less than or equal to your applicable amount, then you will qualify for benefit to cover all of your "eligible weekly rent " and all of your "eligible Council Tax".

Excess Income

If your total income exceeds your applicable amount, you have "Excess Income".

e.g. Your total income is £150.00 per week and your applicable amount is £122.80, then your excess income is £27.20.

Your weekly Housing Benefit will then be worked out by taking 65% of your Excess Income from your weekly eligible rent amount.

e.g. weekly eligible rent is £50.00 and your excess income is £27.20

Housing Benefit is £50.00 - (65% of £27.20). This is £50.00- £17.68 = £32.32 per week.

Your weekly Council Tax Reduction will be worked out by taking 20% of your excess income from your weekly Council Tax charge

e.g. If your weekly Council Tax charge is £12.44 and your Excess Income is £27.20,
weekly Council Tax Reduction is £6.01 - (20% of £27.20). This is £12.44 - £5.44 = 7.00 per week.

Non dependants

We will then take account of any non-dependants (members of your family who are over 18 and other people who live with you), which may reduce the amount of benefit you will receive.


If you think we have worked out your Housing Benefit incorrectly, you can ask us to check it and appeal against our decision.  See Benefit Appeals for more information.

Last reviewed: 03 - 01 - 2014

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