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Capital (Savings)

Housing Benefit and Council Tax Support are means tested so your income and savings will effect how much you receive. There are different rules for working age and pensioners.

Glass piggy bank


Capital (Savings) - Working Age

Capital includes land and property - other than your home - as well as stocks, shares, bonds, bank and building society accounts. 

If you have more than £6,000 you will not qualify for Council Tax Support.  For Housing Benefit the first £6,000 of your capital is not counted - but for every part or full £250 above £6,000, we add £1.00 to your weekly income.  This is called Tariff Income.

The table below shows how any capital above £6,000  - but below the £16,000 limit for Housing Benefit - is converted to a weekly "Tariff Income".

Capital - Working Age

Capital Held

Tariff

Capital Held

Tariff

Capital Held

Tariff

£6000.01 - £6250.00

£1.00

£7750.01 - £8000.00

£8.00

£9500.01 - £9750.00

£15.00

£6250.01 - £6500.00

£2.00

£8000.01 - £8250.00

£9.00

£9750.01 - £10000.00

£16.00

£6500.01 - £6750.00

£3.00

£8250.01 - £8500.00

£10.00

£10000.01 - £10250.00

£17.00

£6750.01 - £7000.00

£4.00

£8500.01 - £8750.00

£11.00

£10250.01 - £10500.00

£18.00

£7000.01 - £7250.00

£5.00

£8750.01 - £9000.00

£12.00

£10500.01 - £10750.00

£19.00

£7250.01 - £7500.00

£6.00

£9000.01 - £9250.00

£13.00

£10750.01 - £11000.00

£20.00

£7500.01 - £7750.00

£7.00

£9250.01 - £9500.00

£14.00

and so on - up to: £16000.00

£40.00



Capital - Pensioners

Capital includes land and property - other than your home - as well as stocks, shares, bonds, bank and building society accounts etc.

The £16,000 capital limit will apply unless you are getting Guaranteed Pension Credit, in this case the whole of the income and capital will be disregarded.

If you have reached the qualifying age for state pension credit, the first £10,000 of your capital does not count-but for every part or full £500 above £10,000, we must add £1.00 to your weekly income.  This is called Tariff Income  - the amount of £10,000 also applies for people permanently in care homes

The table below shows how any capital above £10,000  - but below the £16,000 limit for Housing Benefit and Council Tax Support - is converted to a weekly "Tariff Income".

Capital - Pensioners

Capital Held

Tariff

Capital Held

Tariff

£10,000.01 - £10,500.00

£1.00

£13,000.01 - £13,500.00

£7.00

£10,500.01 - £11,000.00

£2.00

£13,500.01 - £14,000.00

£8.00

£11,000.01 - £11,500.00

£3.00

£14,000.01 - £14,500.00

£9.00

£11,500.01 - £12,000.00

£4.00

£14,500.01 - £15,000.00

£10.00

£12,000.01 - £12,500.00

£5.00

£15,000.01 - £15,500.00

£11.00

£12,500.01 - £13,000.00

£6.00

£15,500.01 - £16,000.00

£12.00

Proof of Capital

We need to see proof of all capital held by either:

  • Yourself
  • Your husband/wife/partner
  • Your non-dependants - This may be needed, but not in all cases

By capital we mean all your money - not just what you would call "savings".  Examples of Capital that we must be told about include:

  • Bank and Building Society Accounts (including current/cheque accounts)
  • Post Office accounts
  • Premium Bonds
  • Stocks and Shares
  • Land or Property (but not the home you live in)
  • Cash

Acceptable forms of evidence or proof include:

  • Current Bank or Building Society statements which show credits and debits and the outstanding balance over a period of two months
  • Building Society or Post Office books which show credits and debits and the outstanding balance over a period of two months
  • Letter from the bank or building society which shows the:

            - type of account held 
            - account numbers 
            - balance outstanding

The letter must say whether the details reflect the account for the last two months and provide any information on regular monies deposited into the account.

  • Original documents showing proof of ownership for example, dividend statements detailing assets for:

            - savings certificates 
            - bonds 
            - unit trusts 
            - stocks and shares etc

A slip from a cash point showing the outstanding balance of an account is not acceptable as evidence.

We need to see the original documents, not photocopies.  If you do not provide the documents we need, it may take longer to decide your claim.  If you cannot provide proof for any reason, you should contact the Benefits Services immediately who will advise you what to do.

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