Housing Benefits and Council Tax Support - working age claimants

Council Tax Support/Housing Benefit is a Government scheme to help people on low incomes to pay Council Tax and rent. It is sometimes called rent rebate, rent allowance or Council Tax rebate. The scheme is run by local Councils. It is assessed on your income compared with your needs. Outgoings such as mortgage repayments, loans etc; are not taken into account.

Income Support - If you are in receipt of Income Support or Job Seekers Allowance (Income Based), you will qualify for 100% Council Tax Support (subject to non-dependant deductions).

Income- includes earnings; private pensions, state benefits, and savings.

Capital (Savings, etc) - It is the value of capital that is taken into account - not the income received from it.

  • capital of £6,000 and under is ignored
  • for every £250 or part of £250 exceeding £6,000, £1.00 per week is added to income

eg capital

Working age 

£ 6,500 = £ 2.00

Per week income

£ 7,000 = £ 4.00

Per week income

£ 8,000 = £ 8.00

Per week income

£ 8,750 = £11.00

Per week income

Over £16,000 will not quality for Council Tax Support/Housing Benefit

Earned Income and Company Pensions

Gross earned income, less income tax, national insurance contributions and 50% (one-half) of contributions to a Company Pension Fund, will be used to calculate benefit/support. (For pensions the gross amount, less income tax will be used.)

Applicable Amount - is the amount which the government considers you need to live on. The Applicable Amount is made up of a number of elements. These are personal allowances, allowances for dependants and extra allowances called premiums.


There will be a deduction for all non-dependants over the age of 18 years living with you at the property, except for those in receipt of Income Support, and certain other persons, eg Students.

2nd Adult Rebates

If you have someone sharing your home who is not a partner and is over 18 years of age and not paying a rent, you may be able to claim Council Tax rebate in respect of that person. Entitlement is based on that person's income only.