Isle of Wight Council

Housing Benefit - Entitlement

How is my Benefit Calculated

An applicable amount is the minimum amount that the Government says that you and your family need to live on each year.  If your income is above your applicable amount, you will receive less Housing Benefit and Local Council Tax Support.

This is made up of your:

  • Personal allowance
  • Personal allowances for children in your family
  • Premiums

To find out more information about the current rates, please visit GOV.UK website.

View our guide Understanding your benefit award notification. (PDF, 64KB, 2 pages).

Personal allowance

Your applicable amount will include a personal allowance and these amounts vary depending on your age and whether you are single or living together as a couple.

Personal allowances for children

If you have any dependant children for whom you receive Child Benefit for, your applicable amount will also include an allowance for each child. The allowance continues as long as you get child benefit for the child.


Your applicable amount may include a premium for:

  • Having a disability
  • Being of pensionable age
  • Caring for someone
  • Being a family 

Income and capital above my applicable amount

The council works out the difference between your income and your applicable amount. This is called your excess income. The council takes away 65% of the excess from the help you can get with your rent (65% is 65p in every £1). If this leaves you with HB of less than 50p a week it is not paid. Local Council Tax Support is reduced by 20%.

If you live with your partner, your Housing Benefit and Local Council tax support will be based on your joint income and capital.  This also applies to couples in a civil partnership.

Income and Capital

Income is all the money you and your partner receive.  This includes earnings, pensions, tax credits, other benefits and an assumed income from savings. Capital is all savings and investments held by you or your partner and the value of any property or land you own but don’t live in. Earnings include money received from employment and self-employment.

Some benefits are disregarded such as Attendance Allowance and Disability Living Allowance and Personal Independence Payments, War Pensions.

If you are of working age and have £16,000 or more in savings/investment or assets, you will not be entitled to Housing Benefit. If you have £6,000 or more, you will not be entitled to Local Council Tax Support.

Any capital you have under £6,000 will be disregarded in the assessment. If you have savings between £6,000 and £16,000 - each £250 (or part of £250) will count as £1 income a week.

If you are of pensionable age, any savings you have under £10,000 will be disregarded when we assess your claim. If you have savings between £10,000 and £16,000 each £500 (or part of £500) will count as £1 income a week.

If you are of pension age and have £16,000 or more you will only get Housing Benefit or Local Council Tax Support if you are receiving the Guaranteed element of Pension Credits.


In the calculation, we use the rent from the Local Housing Allowance rates, or the eligible rental charge if you are in the social sector.  Please visit the Directgov website for your current rate.

Then 65% of excess income above the applicable amount is taken away from the maximum eligible rent.


Total weekly income used in calculation:   
Earnings  £200.00
Child Tax Credit £150.00
 Working Tax Credit £50.00
 Total £400.00
Minus working tax disregard £17.10
Minus earnings disregard £10.00
Total net income £372.90
Minus your personal allowance of £199.00 (couple £114.85, one child - £66.90, family premium - £17.25)
Total excess income £173.70
Less 65% £112.91
2 Bedroom LHA rate £121.15
Minus income £112.91
Housing benefit entitlement £8.24

However, if the Benefits Cap applies or you are subject to the social sector size criteria, this will further reduce a person's partial Housing Benefit.

If you have any other adults living in your household, a non-deduction deduction may also apply depending on their level of income.