Understanding your letters

When will my benefit start?

We usually start paying from the Monday after we receive your claim. Your benefit will normally end on the Monday after you are no longer entitled to it. If you are receiving Income Support / Job Seekers Allowance, the Benefit Agency tells us when to start and end your benefit (THERE ARE EXCEPTIONS TO THIS RULE). However, you must tell us about any change in your circumstances.

Income

The calculation we use to work out your benefit must include all you and your partner’s income.

Net Earnings

Net earnings are you and your partner’s earnings after taking away National Insurance, tax and half of any contributions to a company or personal pension scheme.

Capital

This is all the savings and investments you and your partner have in bank or building society accounts, shares, income bonds, National Savings Certificates, Premium Bonds and so on. We ignore your first £6000 of capital but every £250 or part of £250 above £6000 adds £1 a week to your income, whether or not this capital actually makes you money. This is called tariff income. If you are aged 60 or over the tariff income on your savings is £1 for every £500 or part of £500 above £6000.

If you have capital above £16,000, you cannot get Housing Benefit and Council Tax Benefit but you may still get Second Adult Rebate (see below). There are exceptions to this rule for pensioners.

Income Disregards

We ignore all or part of certain types of income. For example we ignore the first £15 of maintenance you receive for children; we ignore all of a War Pension; and we ignore all Attendance Allowance, Mobility Allowance, Disability Living Allowance, Guardian’s Allowance and parents’ contribution to a student grant. However, we still need to know if you are receiving Attendance Allowance, Mobility Allowance or Disability Living Allowance. We will also ignore part of your earnings. We ignore for example the first £5 for single people, £10 for couples, £20 for people in certain jobs or people who are disabled, long term sick or receive Carers Allowance and £25 for single parents. Also, up to £300 can be ignored from your earnings, for a family, if you meet certain conditions and you pay for childcare for children under 11.

Applicable Amounts

These are the amounts which the Government says certain people need to live on. It is made up of a personal allowance and premiums. Premiums are amounts which may be added if you are disabled, over 60, a single parent or if you have children. We compare your applicable amount with your total income to see how much benefit you should get.

Eligible Council Tax

This is the amount of Council Tax set by the local authority, less any reductions if you are disabled or entitled to a transitional reduction or personal discount. (See our Council Tax leaflet about these reductions).

Eligible Weekly Rent

We do not pay benefit for items in your rent such as water rates, meals, heating, personal services and so on. So we take amounts for these from your rent before we work out your benefit. We take off set amounts unless your landlord gives us a list of the amounts included in your rent for these items. We will refer your eligible weekly rent to the Rent Service to see if this is reasonable. The Rent Service will set the maximum rent your Housing Benefit will be calculated on (There are some exceptions to this rule). If you are single and less than 25 years old the Rent Service will set the maximum rent your Housing Benefit will be calculated on (unless you pay rent to a registered Housing Association).

Non-Dependants

If you receive Housing Benefit or Council Tax Benefit the Government says we must take off an amount for people over 18 (other than your partner) who live in your home. This is done because these people should normally be paying some money towards your household expenses. We take off these amounts whether the non-dependants actually contribute or not. The amount we take off depends on the non-dependant’s age, whether or not they are working and the level of their income.

The deductions from Housing Benefit are: £7.40, £17.00, £23.35, £38.20, £43.50 or £47.75 a week.

The deductions from Council Tax Benefit are: £2.30, £4.60, £5.80 or £6.95 a week.

Second Adult Rebate

You may still get this benefit if you do not get Council Tax Benefit. It is worked out on the income and savings of all people over 18 who live with you (THERE ARE EXCEPTIONS), and who are not your partner, a joint tenant/owner or a lodger. This benefit is set by the Government as a percentage of your Council Tax as follows:

1. All other adults on Income Support or Pension Credit living with full time student householder - 100%
2. All other adults on Income Support or Pension Credit - 25%
3. If all their income (before tax) is less than £162 a week - 15%
4. If all their income (before tax) is between £162-£209.99 a week - 7.5%

Payment

Private tenants receive their Housing Benefit by cheque every fortnight (two weeks in arrears). We can pay your landlord directly if you ask. If you want it paid direct to your landlord it will be paid every 4 weeks, in arrears. The minimum Housing Benefit we pay is £0.50. If you get Council Tax Benefit or Second Adult Rebate we take the amount of the benefit off the amount of Council Tax you are due to pay for the year.

Change of Circumstances

The following are examples of changes that you must tell us about in writing.

1. You or your partner starting work.
2. You or your partner no longer receiving Income support / Job Seekers Allowance.
3. Your or your partner’s income changing.
4. Somebody coming to live in or leaving your home.
5. Your rent payments changing or you moving to another address.

If you have had or are expecting a change in your circumstances you can print a form here to tell us about it.  Once you have printed the form please complete it and send/bring it to us.