How benefits works
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Summary
Housing Benefit and Council Tax Benefit is paid by your local Council. Housing Benefit is for people who qualify for assistance with their rental costs. Council Tax benefit can be granted to any resident who pays Council Tax.
- Receiving Income Support/Job Seekers Allowance (IB)
- Receiving other state benefits, state retirement pension or pension credit
- Self employed and on low earnings
- Working part-Time
The amount of your benefit entitlement depends upon five factors:
- Household details
- Your weekly income
- Your capital
- The amount of your Council Tax and/or the amount of your rent
- Whether a Non-Dependant lives with you (e.g. a grown up son or daughter, parent, friend etc).
Benefit is calculated by reference to an APPLICABLE AMOUNT. This is a figure set by the Department of Work and Pensions each year, which is intended to reflect BASIC WEEKLY LIVING EXPENSES.
In practice, you may feel the Applicable Amount is inadequate. Nevertheless, it is the figure that we must use. It is based on a PERSONAL ALLOWANCE for the claimant and partner (if any) which is increased if there are any DEPENDANT CHILDREN and increased again by premiums in certain specific situations.
From 2nd November 2009, Child Benefit is going to be ignored as part of your income for the housing and council tax benefit calculation. We already ignore Child Maintenance when calculating your income for benefit purposes.
Also from 2nd November 2009 for people aged 60 and over the amount of capital you can have before it affects your entitlement to Housing Benefit and Council Tax Benefit is being raised from £6,000 to £10,000.
From the 7th April 2008, Housing Benefit has been calculated under Local Housing Allowance.
Local Housing Allowance
Advice for landlords
More information on Housing and Council Tax Benefit can be found in the following explanatory notes, which can be downloaded from this website.
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(PDF) Explanatory notes if you are under 60 years of age
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Estimated download time: (56k = 58 secs)(PDF) Explanatory notes if you are over 60 years of age
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Making Sense of Benefits and Finances Factsheet - this provides general, helpful advice on a range of benefits.
Size: 2000 KB
Estimated download time: (56k = 57 secs)
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