Housing Benefit and Council Tax Reduction is calculated by looking at your personal and financial circumstances.

If you receive Income Support, Job Seekers Allowance (Income Based), Employment and Support Allowance (Income Related).

If you receive Income Support, Job Seeker’s Allowance (Income Based), Employment and Support Allowance (Income Related) or Pension Credit Guarantee Credit:

You will receive the full amount of benefit after any deductions, such as those for non-dependants or service charges, have been taken off.

If you are working age and entitled to Council Tax Reduction we will deduct 25% from your award amount.


All other cases:

We calculate benefit by comparing your weekly income with your 'applicable amount'. Your applicable amount is the amount the Government says you need to live on each week (the amount will depend on your circumstances for example: if you are single, part of a couple, sick, disabled, elderly or a lone parent).

From 1 April 2013 a benefit cap was put on the total amount most people between 16 to 64 can receive.

The amount of benefit we will pay depends on:

  • If you have a partner
  • Your income from working, benefits and pensions
  • Any savings and investments you have
  • If you have any children living with you
  • The age and income of other people living with you 
  • If you or your family have an illness or disability
  • The number of rooms you need
  • The Local Housing Allowance rates (if you rent from a private landlord)

If your income is LESS than your applicable amount - You will receive the maximum amount of benefit after any deductions that we need to make have been taken off.

If your income is MORE than your applicable amount - we will reduce your maximum benefit on a sliding scale set by the Government.

If you are working age and entitled to Council Tax Reduction we will deduct 25% from your award amount.


The following pages contain examples of a Housing Benefit calculation and an example of a Council Tax Reduction calculation.

Example of Housing Benefit calculation

Example of Council Tax Reduction calculation