How is Benefit Calculated?

Housing and Council Tax Benefits are means tested by comparing your income against your needs. In Housing and Council Tax Benefits your needs are measured through Applicable Amounts, while your incomes are any income and capital converted to a weekly figure.

The Housing and Council Tax Benefit also take into account, income received from certain other adults living in the Household, known as Non Dependant.

Deducting the total weekly income from the applicable amount gives you the excess income figure. The Government states that 65% of the excess income should be paid towards the rent and 20% of the excess income should be paid towards the Council Tax.

If you are in receipt of Income Support, Job Seeker's Allowance (IB), Employment Support Allowance (IR) or Pension Credit (guaranteed) you will qualify for the maximum eligible benefit, (less any Non dependant deductions). Maximum Benefit is 100% of the eligible Rent or Council Tax. The Eligible rent for tenants renting from private landlords are based on the Local Housing Allowance rates.

Example of a benefit assessment

Housing Benefit	£	Council Tax Benefit	£
Income	150.00	Income	150.00
less Applicable Amount	105.95	less Applicable Amount	105.95
= Excess Income	44.05	= Excess Income	44.05
Taper 65%	28.63	Taper 20%	8.81

Eligible Rent (weekly)	98.00	Eligible Council Tax (weekly)	23.63
Less 65% Taper	28.63	Less 20% Taper	8.81
Housing Benefit	69.37	Council Tax Benefit	14.82