Applicable amounts

Everyone has a maximum amount of weekly income they can receive before their income starts to affect their housing benefit and council tax reduction.

This figure is called your applicable amount, and is compared against your income and capital to work out how much housing benefit and council tax reduction you receive.

Your applicable amount varies depending on your age, the size of your family, and any special needs you have (for example whether you are disabled).

The applicable amount has 3 main parts, these are:

  1. an amount for you and your partner – your personal allowance
  2. an amount for any dependent children – your children’s personal allowance
  3. a premium – an element which you may qualify for to cover any special needs which you have

Once your personal allowances and allowances for your children have been worked out, if you meet the qualifying conditions premiums can be added to make up your applicable amount.

Once your income goes over your applicable amount then for every extra pound you have, you lose 65p from your housing benefit and 20p from your council tax reduction.

If you receive jobseekers allowance (income based), employment and support allowance (income related), guaranteed pension credit, or income support we will not need to determine your applicable amount. This is because the assessment of your income and savings will already have been undertaken by the DWP or pension service. You will receive the maximum housing benefit and council tax reduction allowed, subject to any non dependant deductions for other adults who live with you.

From April 2018, if you are receiving universal credit, please be aware you will no longer automatically receive maximum entitlement to council tax reduction. Instead we will now determine your applicable amount and compare it to your income to work out entitlement to council tax reduction.

If you are of working age from April 2018, the maximum council tax reduction is restricted to 83% of your total liability, before any deductions due to income and capital are made.

Applicable amounts for housing benefit and council tax reduction – working age (effective 1 April 2019)

Personal allowance for people under state pension credit age

Housing benefit and council tax reduction 2019/20
Single claimant Aged 16-24 £57.90
Aged 25 or over £73.10
Lone parent Aged under18 (HB only) £57.90
Aged over 18 £73.10
Couple Both under 18 £87.50
One or both over 18 £114.85
Polygamous partner Amount for each additional spouse £41.75

Personal allowances if you have children

For housing benefits this is restricted to a maximum of 2 children from 1 April 2018. There is no restriction to council tax reduction for working age households.

Housing benefit and council tax reduction 2019/20
Dependent child or young person Amount for every child from date of birth to first Monday in the September following 16th birthday. £66.90
Amount per child from September following the 16th birthday to day before 20th birthday as long as receiving child benefit. £66.90

Premiums

Housing benefit and council tax reduction 2019/20
Family premium Awarded once to all families with dependent children. HB claimants only receive this if they claimed before 01.05.2016 £17.45
Family premium (lone parent) Awarded once to all lone parents with dependent children who claimed before 5 April 1998. £22.20
Disability premium Single rate £34.35
Couple rate £48.95
Enhanced disability premium Single / lone parent £16.80
Couple £24.10
Child £26.04
Severe disability premium Single £65.85
Couple one qualifies £65.85
Couple both qualifies £131.70
Disabled child premium £64.19
Carer premium £36.85

Applicable amounts for housing benefit and council tax reduction – over state pension credit age

You can work out your state pension credit age using the government’s state pension calculator.

 Personal allowance for people over state pension credit age

2019/20
Single claimant Over state pension credit age £181.00
Couple One member or both members over state pension credit age £270.60
Polygamous partner Amount for each additional spouse (one or more over state pension credit age) £89.60

Personal allowances if you have children

For pensioners this allowance is restricted to a maximum of 2 children from 1 April 2017 for both housing benefit and council tax reduction.

2019/20
Dependent child or young person Amount for every child from date of birth to first Monday in the September following 16th birthday. £66.90
Amount per child from September following the 16th birthday to day before 20th birthday as long as receiving child benefit. £66.90

Premiums

2019/20
Family premium Awarded once to all families with dependent children who claimed before 01.05.2016 £17.45
Enhanced disability premium Disabled child rate £26.04
Severe disability premium Single £65.84
Couple one qualifies £65.84
Couple both qualifies £131.70
Disabled child premium £64.19
Carer premium Claimant or partner or each £36.85

Second adult rebate – pensioners only

Only individuals over pension credit age are able to apply for second adult rebate. Working age individuals can not receive this rebate.

If you share your home with another person, who is not liable to pay the council tax bill, and you have lost your single person discount as a result you may qualify for second adult rebate.

Second adult rebate can reduce your council tax bill if the second occupier is on a low income, and does not pay rent to live in your home.

Although you the council tax payer have to apply, it is based on the gross income of the second adult who lives with you. The second adult does not have to be a pensioner.

Please find below the amount of income which the second adult can have before losing entitlement to second adult rebate, and the amount it can reduce your council tax bill by.

If you have any questions please call us on 020 8356 3399 and we can send you a form to apply.

Second adult rebate 2019/20
Second adult(s) in receipt of IS or JSA(IB), ESA (IR) or pension credit living with full time student household 100%
Second adult(s) in receipt of IS or JSA(IB), ESA (IR) or pension credit 25%
Second adult gross income Less than £206.00  per week 15%
£206.00 to £266.00 per week 7.5%
Above £266.00 per week 0%
Page updated on: 5 June 2019

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