Calculating Housing Benefit

When we calculate your housing benefit we will consider the following items

• Income for yourself and your partner
• Capital for yourself and your partner
• The applicable amount
• The income and capital for members of the household
• The amount of rent or the determination made by the rent service

We will also take into account

• Whether you are single
• Whether you have children
• Whether you are over 60
• Whether you have a disability

Income

For housing benefit purposes 'income' is money that you receive, not only from an employer but also from welfare benefits and any other sources.

For example

• Maintenance payments
• Money from friends
• Pensions or pension credits
• Tax or child tax credits
• Money from boarders
• Self employed earnings
• Bonuses, tips

We will also calculate a tariff income that is based upon the amount of capital you have.

If you or your partner are both aged under 60 and have capital between £6,000 and £16,000 we have to add £1 a week to the income we use to work out your benefit for each £250, or part of £250, of capital over £6,000. For example, if you have £6,001 we will add £1 a week.

If you or your partner are 60 or over then we will disregard capital under £6000 and we add £1 a week to the income we use to work out your benefit for every £500 of capital.

In certain cases part or all of a particular income will be disregarded. This depends upon both the type of income and your personal circumstances. You will need to provide a Proof of Earnings form (pdf 61kb) with your application. 

Capital

For the purpose of housing or council tax benefit, capital includes your savings investments. If this totals more than £16,000 then you will not be able to get housing or council tax benefit unless you or your partner receives a pension credit.

Examples of capital are

• Money in bank, building society or post office accounts
• Stocks and shares
• ISA, Tessa
• Premium bonds
• Income or capital bonds
• Other land and property

As detailed in the income section, a tariff income will be taken depending upon the amount of capital and you/your partner's age.

Applicable amount

Each year central government sets a figure called the 'applicable amount'.

Your applicable amount will take into account the size and age of your family, your age and any extra needs you may have. It is made up of three parts

1. Your personal allowance
2. Personal allowance for the children in your family
3. Premiums

Your personal allowances

The level of your personal allowance will depend upon your age and whether you have any children. There are eight different groups and these are split between working age and pensioners.

Working age

• A single person under 25 or a lone parent under 18
• A single person aged 25 or over or a lone parent aged 18 or over
• Couples where both are under 18
• Couples where one partner is over 18

Pension age

• A single person aged between 60 and 64
• A couple aged between 60 and 64
• A single person aged 65 or over
• A couple aged 65 or over

Personal allowances for children

If you are responsible for children, other then foster children, then you will get an allowance for each child depending on their age. 

Premiums

There are three different types of premiums that will be considered when calculating the applicable amount. These are

• Family premium - this applies if you have dependant children living with you. You will only get this once regardless of the number of children
• Disability premium - this is split into categories: disabled child premium, enhanced disability premium or severe disability premium
• Carer premium - this applies if either you or your partner are looking after a disabled person and receive Invalid Care Allowance or Carers Allowance or would be entitled but for an overlapping benefit

Generally there are no limits to the number of different premiums you will be awarded. However, there are some circumstances where you will only receive the highest.

Non-dependants

If you have any other adults living with you, over the age of 18, such as grown-up children, we may have to reduce the benefit we can pay to you. The reduction to your benefit is called a 'Non-Dependant Deduction'.

The level of deduction will depend on the non-dependant's circumstances, for example whether they are working, the number of hours they work, their income. For housing benefit there are six different levels of deductions and four for council tax benefit. However there are some circumstances when a deduction will not be taken.

For more information please go to the Non-dependant deductions page.

The rent

Private or housing association tenants

If you pay your rent to a private landlord or Housing Association, and you make your claim after 7 April 2008, your claim will be dealt with under Local Housing Allowance rules. 

Council tenants

If you pay your rent to the council we will not need to ask the rent service for a determination. To calculate your housing benefit we will use the actual rent figure less certain services.

The amount of benefit will be calculated on a weekly basis regardless of how frequently you pay your rent.

Contact us

By telephone

020 7525 1880 - housing and council tax benefit
020 7525 1850 - council tax

By post

Council Tax Section
London Borough Of Southwark
P.O. Box 782
Bromley
BR1 3YE

Please indicate which department your query is for.

In person

Bermondsey One Stop Shop
Spa Road
Bermondsey
SE16 3QN

Peckham One Stop Shop
Ground Floor
Peckham Library
122 Peckham Hill Street
SE15 5JR

Walworth One Stop Shop
151 Walworth Road
London
SE17 1RY

Dulwich Area Housing Office
41-43 East Dulwich Road
Dulwich
SE22 9BY

All one stop shops are open from Monday to Friday, 9am to 5pm. In addition, Peckham one stop shop is open on Saturday, 9am to 1pm.

By email

Housing/council tax benefit: Souhousingbenefitsuk@Liberata.com
Council tax: Soucounciltaxuk@Liberata.com