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Benefits - Financial Assessment

After the income and capital of the household have been assessed, the next step in the calculation of benefit is to determine the minimum living costs - known as the applicable amount - of the household. This figure is calculated using figures determined by the Government each year.

This is made up of different allowances for single people, couples and children depending on the ages and circumstances, such as, whether they are of pensionable age or disabled.

This 'needs allowance' is compared with your total weekly income as calculated for benefit purposes, to determine the amount of benefit you are entitled to.

The greater your weekly income compared with your applicable amount, the lower the amount of benefit you will be entitled to.

What is a Non Dependent Deduction?

People living in the household who are not the partner or a dependant child of the claimant or partner are known as 'non-dependants'.

Except in certain circumstances such as, where the claimant is registered blind, a deduction is made in the benefit calculation to recognise the contribution 'non-dependants' should be making to household expenses which includes the rent.

The amount of the deduction varies dependant on the gross income of the non dependant. A crucial point is what constitutes a 'household'.
Special rules deal with boarders, sub tenants and people living in the same property, but who pay rent separately.

How is the Benefit calculated?

Housing Benefit: Claimants receiving income support are entitled to maximum Housing Benefit which is the maximum eligible rent less any non-dependant deductions.

For claimants not on income support income is compared with the applicable amount and 65% of any excess income deducted from maximum benefit.

Council Tax Benefit: Claimants receiving income support are entitled to maximum Council Tax Benefit which is the maximum eligible council tax less any non-dependant deductions.

For claimants not on income support income is compared with the applicable amount and 20% of any excess income deducted from maximum benefit.