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Capital and savings are treated differently dependant on whether you are of working age or of State Pension Age.
If you are working age and have less than £6000, this is ignored completely for Housing Benefit and Council Tax Reduction purposes. For every £250 (or part) above £6000, we must add £1.00 to your weekly income when we calculate your benefit. This is called 'tariff income'.
A working age person with savings of £6001.00 equates to a weekly tariff income figure of £1.00
A working age person with savings of £6500.00 equates to a weekly tariff income figure of £2.00
A working age person with savings of £10 000 equates to a weekly tariff income figure of £16.00
If you have reached state pension age, the first £10 000 of savings are ignored and the tariff income applied is £1.00 for every £500 savings you have over £10 000.
Please see Housing Benefit and Council Tax Reduction for older people for details.
Q: My child is disabled and has high dependency on medical equipment. We have had to move into a larger property to ensure we have an extra bedroom for this equipment. Will I be able to claim this extra bed room rate?