Southampton City Council

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How is benefit calculated?

The amount of benefit we will pay you depends on a number of things:
• Your income (and your partner’s, if you have one)
• Your (and your partner’s, if you have one) savings and/or investments
• The number of children who live with you
• Other people who live with you
• Whether you or your family have special circumstances, for instance through illness or disability.

People who receive Income Support, Job Seeker’s Allowance (Income Based) Employment and Support Allowance (Income Related) or Pension Credit Guarantee Credit are usually entitled to full benefit. However, this entitlement may be reduced when there are other adults (called non-dependants) living with you.

If you are under 25, your Housing Benefit may be restricted to what is called the single room rent, even if your property is larger than just a single room. If you are in receipt of Local Housing Allowance, this may be restricted to the shared accommodation rate.

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

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

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

All other cases
We work out your benefit by comparing your weekly income with your “applicable amount”. Your applicable amount is what the Government says you need to live on each week. The applicable amount will be higher for some people, for example if you have a disability or have been unwell for a long time, or if you are a one parent family.

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.


What do you count as income when you work out my benefit?
•Social Security benefits (Disability Living Allowance and Attendance Allowance are disregarded)
• Maintenance (maintenance for children is disregarded)
• Works pensions
• Wages
• Tax Credits
• Any rental income from a lodger or boarder

The following benefits are disregarded:
• Child Benefit
• Attendance Allowance
• Disability Living Allowance
• War Widows Pension
• War Disablement Pension
• Child Tax Credit (if received by claimants over pensionable age)

We don’t count the first
• £5 of the money you earn each week, if you are single
• £10 of the money you earn each week, if you are a couple
• £20 of the money you earn each week, if you are disabled
• £25 of the money you earn each week, if you are lone parent


In some cases, if you are working full time, we may be able to ignore an additional amount of your earnings in addition to the disregards listed above.
In some circumstances, we ignore money you have to pay for childcare costs but you must provide proof of these costs such as your most recent childcare payment receipts, childcare contract and childcare OFSTED registration certificate.
We count the money you earn from work after deducting tax and national insurance and half of any money you pay into a pension fund.


What happens if I have savings or investments?
Savings and investments are:
• Money that you (or your partner, if you have one) have in any bank and building society accounts
• Investments in stocks, shares, bonds, national savings certificates or premium bonds that you (or your partner, if you have one) have
• The value of any property (except the place that you live in) that you (or your partner, if you have one) own.

Government rules say that if you (or your partner, if you have one) are of working age and have savings or investments of more than £16,000, there will be no entitlement to Housing Benefit or Council Tax Benefit. However, this rule does not apply if you are in receipt of Guarantee Credit.
If you (or your partner, if you have one) are under pensionable age and have
• Less than £6,000 in savings, it will not affect your claim
• Between £6,000 and £16,000 in savings, it will affect your claim

For every £250 (or part of £250) you have over £6,000, we add £1 to the money we count each week when working out your benefit. This is called tariff income.

If you (or your partner, if you have one) are of pensionable age and have
• Less than £10,000 in savings, then it will not affect your claim
• Between £10,000 and £16,000 in savings, it will affect your claim
For every £500 (or part of £500) you have over £10,000, we add £1 to the money we count each week when working out your benefit.

For an estimate of entitlement to benefit you can complete the online benefits calculator.

Non dependant deduction FAQs

1. Who are non dependants?

A non-dependant is
• A grown up son or daughter, aged 18 or over
• Any other relative aged 18 or over
• A friend aged 18 or over

A non-dependant is not
• Your partner, if you have one
• A child that you get child benefit for
• A person under 18
• A person in full time education
• A person on a youth training scheme
• A person who normally lives somewhere else


2. What is a non dependant deduction?

If you have friends, relatives or anyone else aged 18 or over living with you, we call these people non-dependants.
If you have non-dependants in your home, you may get less Housing Benefit, Local Housing Allowance or Council Tax Benefit, as we may have to take an amount out of your benefit for each non-dependant who lives with you.

3. How much is the deduction?

The amount of the non-dependant deduction will depend on the level of your non-dependant’s gross income. Proof of your non-dependant’s income and savings must be provided. Even if your non-dependant has no income the minimum non-dependant charge will still be taken into account as soon as they reach the age of 18 if they are no longer in full-time education.


However, we will not take any money out of your Housing Benefit or Council Tax Benefit if
• You receive Attendance Allowance
• You receive the Care part of Disability Living Allowance
• You are registered blind
• The non-dependant is a paid carer provided by a charitable or voluntary organisation
• The non-dependant is under 25 and on Income Support or Jobseeker’s Allowance (Income Based)
• There will be no deduction from Council Tax Benefit if the non- dependant is on Employment and Support Allowance (Income Related) (ESA IR)
• There will be no deduction from Housing Benefit if the non- dependant is under 25 and in the assessment phase of ESA (IR)
• The non-dependant is in receipt of Pension Credit

Self Employed FAQs

1. Can I get help with rent and council tax if I am self employed?

All self employed earners can claim Housing Benefit and Council Tax Benefit/Second Adult Rebate.
When calculating what income should be used, we have to work out the net profit from the documents provided.
The Net Profit is calculated as follows:-
Gross Income less any allowable business expenses = GROSS PROFIT.
Gross Profit less any notional tax, national insurance and half of any pension contributions = NET PROFIT.

2. What are Allowable Business Expenses?

Only expenses, which the local authority considers to be reasonable and are wholly for the running of the business can be deducted from the gross income figure. Allowable expenses include:
• Rent and rates on business premises
• Stocks and supplies
• Staff costs
• Protective clothing
• Stationary
• Advertising
• Accountancy fees

This is not an exhaustive list and any other expenses will be considered in relation to the nature of your self-employed business.

3. I have a Business Partnership - can I still make a claim for benefit?

If you are self-employed in a partnership, the gross profit has to be split between the business partners. To confirm how the business is divided, the Deed of Partnership should be provided.

Couples who are Business Partners:
The above guidelines will also be used if the business partners are a couple. This will ensure that the deductions for notional tax and national insurance are correctly calculated.

4. I am a child minder. Can I claim benefit?

When calculating what income should be used for self-employed child minders, we do not deduct any business expenses.
The net profit is obtained by deducting tax, national insurance contributions and half of any pension contributions from one third of the gross profit.

5. What information will I have to provide?

You may need to complete a self employed questionnaire and return it with your completed application form. You will also need to provide proof of your previous 12 months’ trading, profit and loss accounts. This should be available from your accountant. Day books or receipts are accepted when the business is new.

Discretionary Housing Payment - FAQ

1. What is a discretionary housing payment?

If your Housing Benefit and/or Council Tax Benefit do not cover all of your rental and/or Council Tax costs you may be entitled to additional financial help through Discretionary Housing Payments. Any entitlement is determined by your individual circumstances and the level of income you have left after taking into account your essential expenditure.

2. What is taken into account in the assessment?

A number of factors are taken into account before a Discretionary Housing Payments award can be made:

Income

Savings

Other people in your home

Your loans and debts

Your money managing skills

Illness or disability in your household

Your efforts to improve your situation

The city council has limited funds for Discretionary Housing Payments, so these payments are normally for a temporary period. You must already be in receipt of some Housing Benefit and/or Council Tax Benefit in order to be eligible for these payments.

If you are in receipt of Housing Benefit, Discretionary Housing Payments will help to meet some or all of the rent that you have to pay after your Housing Benefit entitlement has been calculated. However, Discretionary Housing Payments will only be considered on the amount of rent that is eligible for Housing Benefit purposes after deducting costs such as water rates or fuel. If you are in receipt of Council Tax Benefit, then Discretionary Housing Payments will help to meet some or all of the Council Tax that you have to pay after your Council Tax Benefit entitlement has been calculated.

3. How do I claim?

A Discretionary Housing Payment application form needs to be completed as well as an income and expenditure questionnaire. As much evidence as possible regarding the reasons for your request will need to be provided.

When a decision has been made about your request for Discretionary Housing Payments, you will be notified of the outcome in writing. If you are not happy about the amount of your Discretionary Housing Payments award, you must put you reasons in writing, so that a review of the decision can be considered.

Discretionary Housing Payment forms are available from Gateway in the Civic Centre or from your local housing office. Alternatively a form can be requested from the call centre or be printed from the council website.


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