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How savings and capital affect Council Tax support

If you claim Council Tax Support any capital and/or savings could have an impact on the amount you receive.

Any capital and/or savings you have are ignored if you are in receipt of any of the following:

  • Income Support
  • Income based Job Seekers Allowance
  • Income Related Employment and Support Allowance
  • Guaranteed Pension Credit

If you do not get one of the benefits listed above, then we will look at the savings of you, your partner and any dependent children:

  • If you are single your own capital and/or savings are taken into account
  • If you are a couple, the capital and/or savings of you and your partner are taken into account
  • If your children have any savings and/or capital, this is not usually taken into account
  • If you are of working age and have savings and/or capital of more than £6,000.00 you can’t get any Council Tax Support.
  • If you are Pension Age and have savings and/or capital of more than £16,000.00 you can’t get any Council Tax Support
  • If you are of Pension Age and you have savings and/or capital over £10,000.00 but below £16,000.00 then you could get Council Tax Support but it will be reduced by taking an assumed amount of income into account. We call this tariff income.

If you have not reached State Retirement Pension age you are considered to be of working age.

To check if you are pension age please visit the Department for Work and Pensions website. 

Find out if you are state retirement pension age on the DWP website

What are savings?

Savings include things like:

  • Cash
  • Bank, Post Office and/or Building Society accounts.
  • Premium Bonds
  • Savings Certificates
  • Stocks, Shares and Bonds

We do not take into account any savings held in:

  • Pension Schemes
  • Annuities
  • Life insurance
  • Funeral plans for pension age people

What counts as capital?

Capital includes things like:

  • Property, other than the one you live in
  • Capital that someone else is looking after for you
  • Some payments of income
  • Some arrears payments
  • Some payments made in instalments
  • Capital held outside of the UK or not held in Sterling
  • Business assets when self-employment has ended
  • Any company your own
  • Any trusts you have
  • Some compensation payments after a certain amount of time

Considering whether certain savings and/or capital affects your entitlement can be complicated so if you are unsure ask us for advice.  

Please use our online form below or call us on 0300 1234 121.Contact the benefits team

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