Stockton-on-Tees Borough Council

The Benefit Calculation

If you are receiving Income Support, Jobseekers Allowance (income-based) or Employment and Support Allowance (income related), you will be entitled to maximum benefit. This will be 100% of the "eligible rent" and or council tax, less any non dependant deduction. (Further details below).

If you are working we will take your gross weekly income and your partners, if applicable, and make deductions for any income tax, national insurance and 50% of any contributions towards a pension scheme. We will also deduct an amount ranging from £5 to £41.85 depending on your circumstances, known as an "earnings disregard".

We will also take into account any other income you have, for example, State Retirement Pension, disability benefits and so on, although some income may be disregarded in the calculation.

If you have savings, for those of working age we will add a further £1.00 for every £250 (or part of £250) you have over £6,000. If you are a pensioner we will add £1.00 for every £500 (or part of £500) you have over £10,000. But remember if you have more than £16,000 you will not be entitled to benefit unless you are getting Guarantee Pension Credit.

We will compare your total weekly income to your "applicable amount". This figure is set by the government to represent the basic living needs of a claimant and family. It is made up of:

• A claimants personal allowance
• A personal allowance for a partner and dependant children
• A premium, for example a family premium or disability premium.

If your income is lower than your applicable amount you will be entitled to maximum benefit. Otherwise it will be reduced by 65% (20% for Council Tax purposes) of the difference between your income and your applicable amount.

Why not try our online Benefit Calculator or read the leaflets Help with rent and Council Tax for pensioners or people of working age. See the External Links.