What counts as Capital and how does it affect my Benefit?

For Housing and Council Tax Benefit purposes most savings, investments and assets owned by you and your partner are treated as 'capital' and examples of the most likely sources are:

• savings in cash
• current accounts (even if you only use it to get things paid into it like wages or a pension or you just use it to pay bills)
• money in a bank, post office or building society account
• money in savings schemes
• money invested with local authorities
• national Savings Certificates
• Premium Bonds
• Funeral Bond
• stocks and shares, bonds and other investments
• property or land (but not your home or the home of your partner or an aged or incapacitated relative).

The following do not count as capital:

• personal possessions
• certain business assets, if you are still working in the business
• surrender values of Life Policies
• sale proceeds of your home (for up to six months if you intend to purchase another home)
• money from insurance claims in respect of loss or damage to home or personal possessions (for up to six months if used to replace or repair)
• money deposited with a Housing Association for the purpose of obtaining a home
• any Social Fund payment

The above lists are not exhaustive and enquiries should be made to clarify the situation if you are doubtful about any asset or interest you have.

Once we have worked out what your capital amounts to Government rules say that if you (and your partner if you are a couple) have savings or capital of more than £16,000, you cannot get Housing Benefit or Council Tax Benefit.

Please note there is no capital limit for Second Adult Rebate (Alternative Council Tax Benefit).

Otherwise, if you or your partner have £6,000 or less it will not affect your claim.

If you or your partner are aged 60 or over and have between £6,000 and £16,000, it affects how much Housing Benefit you will get. For every £500 (or part of £500) you have over £6,000 we add £1.00 to the money we count each week when working out your benefit.

If you and your partner are aged under 60 and have between £6,000 and £16,000, it affects how much Housing Benefit you will get. For every £250 (or part of £250) you have over £6,000 we add £1.00 to the money we count each week when working out your benefit.

This money that is counted from your capital is called Tariff Income. We do not count any actual interest you get from savings and capital.

Note: For Second Adult Rebate (Council Tax Alternative Benefit) the Capital Tariff does not apply. The actual interest received by the second adult is counted instead.