RR2 - A guide to Housing Benefit and Council Tax Benefit
Working it out
Examples
These are examples of HB/CTB different people may get. The amounts used in these examples have either been made up or they are based on the figures set for April 2003. To check these amounts see Social Security Benefit Rates BRA5DWP. You can get it from your social security office, Jobcentre Plus office or from the Pension Service.
Example 1
Mrs Hargreaves lives in a council flat on her own. She is getting Income Support so she is automatically entitled to maximum HB and CTB.
| a rent rebate of 100% of £45 | £45.00 |
| a council tax rebate of 100% of £8.75 | £8.75 |
Example 2
Tim and Kate are both under pension age with two children under 11 years old. Between them, Tim and Kate have net unearned income (including Child Benefit) of £138.00 a week. No one in the family has any savings. Tim’s brother, who is in full-time work and has a gross income of £142 a week, lives in their house, which is privately rented.
The weekly maximum rent is £60 and council tax liability is £11.48 for Tim and Kate, i.e. annual tax £598.60.
| the couple’s personal allowance is | £85.75 |
| two children under 16 (£38.50 each) | £77.00 |
| family premium | £15.75 |
| total | £178.50 |
Their income is less than their applicable amount, so they get maximum help. But for HB/CTB this must take into account Tim’s brother, who is a non-dependant.
| 100% of £60 | £60.00 |
| non-dependant deduction | £23.35 |
| total | £36.65 |
| The weekly council tax liability is | £11.48 |
| Maximum Council Tax Benefit is | £11.48 |
| non-dependant deduction | £4.60 |
| total | £6.88 |
Example 3
Alex is a lone parent under pension age with part-time net earnings of £168.10 a week. He also gets Child Benefit at the lone parent rate (£17.55). He has a child aged 15 who is blind. He has capital of £2,000 and his child has none. He has been continuously entitled to HB/CTB as a lone parent since 5 April 1998 and has therefore retained his entitlement to family premium (lone parent). They live alone in a council house where the weekly rent is £50 and council tax is £10.
| personal allowance | £54.65 |
| child aged 15 | £38.50 |
| family premium (lone parent) | £22.20 |
| disabled child premium | £41.30 |
| total | £156.65 |
| Alex’s net earnings of £168.10 less the £25 disregarded | £143.10 |
| plus Child Benefit (Lone Parent) | £17.55 |
| total | £160.65 |
The total assessed income exceeds Alex’s applicable amount by £4.00 (£160.65 less £156.65).
| Maximum rent rebate is: | |
| 100% of £50 | £50.00 |
| Rent rebate is reduced by: | |
| 65% of £4.00 | £2.60 |
| Weekly Housing Benefit payable | £47.40 |
| The weekly council tax liability is | £10.00 |
| Maximum Council Tax Benefit is | £10.00 |
| Maximum Council Tax Benefit is reduced by 20% of the excess £4.00 | £0.80 |
| Weekly Council Tax Benefit payable | £9.20 |
