Applicable amounts

Applicable amounts explained

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 2020, the maximum council tax reduction is restricted to 85% of your total liability, before any deductions due to income and capital are made.