Savings, investments and property (capital income)
Capital is anything that has a monetary value, such as land and property, investments and savings, but which is not received on a regular basis or with reference to a specific period, like earnings.
You will not be entitled to Housing Benefit if your (and your partners) combined capital exceeds £16,000, unless you and/or your partner are in receipt of the Guarantee Credit element of Pension Credit.
The following are some of the most common items counted as capital:
- cash
- Individual Savings Accounts (ISAs)
- land
- lump sums such as redundancy payments, insurance payments and back payments of social security benefits
- Premium Bonds and Income Bonds
- properties you or your partner own or jointly own
- money invested in a business and business assets
- money held or jointly held in banks, building societies and the Post Office
- money held or jointly held in any current accounts or pre-paid cards
- money held in trust
- money you have borrowed
- stocks, shares, unit trust holdings, government securities and bonds
- Tax Exempt Special Savings Accounts (TESSAs)
- tax refunds
- Tessa only ISAs (TOISAs)
- National Savings Certificate
You should note that this is not a full list. Other forms of investments, properties, savings, or anything that has monetary value could be counted as capital.
Your total capital affects your Housing Benefit as follows:
- total capital of £6000 or less does not affect your Housing Benefit if you are below the State Pension Age
- total capital of £10,000 or less does not affect your Housing Benefit if you are above the State Pension Age
- total capital between £6,000 and £16,000 can affect your Housing Benefit. The regulations say we must assume that you earn income from your capital. See the table below to work out how much is added to your weekly income depending on how much capital you have
- total capital over £16,000 means that you cannot get Housing Benefit unless you and/or your partner have reached the State Pension Age, and one of you gets the Guarantee Credit element of Pension Credit
The table below shows how much is added to your weekly income depending on how much capital you have.
| Total amount of capital in pounds | Weekly amount added to your total weekly income if you are below the State Pension Age | Weekly amount added to your total weekly income if you are above the State Pension Age |
|---|---|---|
| £6,000.01 to £6,250 | £1 | £0 |
| £6,250.01 to £6,500 | £2 | £0 |
| £6,500.01 to £6,750 | £3 | £0 |
| £6,750.01 to £7,000 | £4 | £0 |
| £7,000.01 to £7,250 | £5 | £0 |
| £7,250.01 to £7,500 | £6 | £0 |
| £7,500.01 to £7,750 | £7 | £0 |
| £7,750.01 to £8,000 | £8 | £0 |
| £8,000.01 to £8,250 | £9 | £0 |
| £8.250.01 to £8,500 | £10 | £0 |
| £8,500.01 to £8,750 | £11 | £0 |
| £8,750.01 to £9,000 | £12 | £0 |
| £9,000.01 to £9,250 | £13 | £0 |
| £9,250.01 to £9,500 | £14 | £0 |
| £9,500.01 to £9,750 | £15 | £0 |
| £9,750.01 to £10,00 | £16 | £0 |
| £10,000.01 to £10,250 | £17 | £1 |
| £10,250.01 to £10,500 | £18 | £1 |
| £10,500.01 to £10,750 | £19 | £2 |
| £10,750.01 to £11,000 | £20 | £2 |
| £11,000.01 to £11,250 | £21 | £3 |
| £11,250.01 to £11,500 | £22 | £3 |
| £11,500.01 to £11,750 | £23 | £4 |
| £11,750.01 to £12,000 | £24 | £4 |
| £12,000.01 to £12,250 | £25 | £5 |
| £12,250.01 to £12,500 | £26 | £5 |
| £12,500.01 to £12,750 | £27 | £6 |
| £12,750.01 to £13,000 | £28 | £6 |
| £13,000.01 to £13,250 | £29 | £7 |
| £13,250.01 to £13,500 | £30 | £7 |
| £13,500.01 to £13,750 | £31 | £8 |
| £13,750.01 to £14,000 | £32 | £8 |
| £14,000.01 to £14,250 | £33 | £9 |
| £14,250.01 to £14,500 | £34 | £9 |
| £14,500.01 to £14,750 | £35 | £10 |
| £14,750.01 to £15,000 | £36 | £10 |
| £15,000.01 to £15,250 | £37 | £11 |
| £15,250.01 to £15,500 | £38 | £11 |
| £15,500.01 to £15,750 | £39 | £12 |
| £15,750.01 to £16,000.00 | £40 | £12 |