Capital for people under 60

How capital will affect your Benefit Claim

In order to assess your claim for Housing Benefit and/or Council Tax Benefit we have to determine your current financial circumstances. This is done by considering both your income and your capital. For the purpose of benefit assessment your 'income' consists of any payments that you may get on a regular basis (such as wages, pensions, benefits etc).

What counts as capital?

Your capital consists of your savings and investments, such as

• Savings in a bank, building society or post office account
• National Savings Certificates
• Stocks and Shares
• Property (excluding the property you live in)
• Premium Bonds
• Income Bonds
• National Savings Bond
• Money held or invested abroad
• PEPs, ISAs, Unit trusts, Securities and Annuities
• Cash

How do I prove the level of my capital?

If you are receiving Income Support or Jobseekers Allowance (Income-based) then your financial circumstances have already been assessed by the Department for Work and Pensions. In this instance it this not necessary to provide any proof of either income or capital.

For all other claims you will be required to submit proof of your capital with your claim form. For savings accounts, ISAs and PEPs we will need to see statements/passbook showing the last two months transactions - even if the account is overdrawn. We will need to see original certificates for shares, stocks and bonds - and up to date valuation statements for Unit trusts, securities and annuities. We will send you a form to complete if you own additional property. You do not need to prove the amount of cash in your possession but you will need to declare this on your application form. If you are unclear on what to send to us please call your local benefits department for advice.

Please be aware that only original documents can be accepted - these will be returned to you once a Benefits assessor has verified them. We do not recommend sending valuable documents by unsecured post, these should either be delivered by hand (whether they will be verified and returned while you wait) or sent recorded delivery. We will return valuable documents (such as account passbooks, share certificates etc) to you by recorded delivery.

How much capital can I have and still claim benefit?

Benefit legislation allows you to have up to £16,000 in capital and still make a claim for benefit. Any more that this will mean you are not entitled to benefit.

The first £3,000 capital is ignored for the purposes of benefit assessment. If your savings total £3,000 or less they will not affect your entitlement.

How will capital between £3,000 and £16,000 affect my claim?

For every £250 (or part) we will assume an income, of £1 per week and this will be added to other income for the assessment of benefit entitlement.

Example: a claimant has £4,500 savings - his/her claim would be assessed using an extra income of £6 (the first £3,000 capital is ignored, the remaining £1,500 generates £1 income per £250).

How will a child's capital affect my claim?

You will not receive a child premium for any young person in our household who possesses a capital level greater than £3,000, nor will a disabled child premium or enhanced disability premium be awarded. However regardless of the capital level of any children in the household you will still be entitled to a family premium. A premium will allow you to have more money coming into your household before your benefit amount is reduced.

How will a non-dependant's capital affect my claim?

Any non-dependant in your household with capital will be assessed as possessing an income derived from the interest their total capital produces. This is calculated on a weekly basis and you will need to provide two months up to date consecutive statements for all accounts.

What if my capital changes?

If there is a change in the level of your capital (or that of a child or non-dependant) you will be required to provide proof of this and to inform us of the date this happened. Acceptable proofs are the same as those provided with the initial claim and must be verified accordingly.

If there has been a substantial change in your capital you must also provide an explanation as to why this has happened.