How is 'Tariff Income' calculated?
If you are aged under 60, Tariff Income is calculated as follows:
- the first £6, 000 is ignored
- for every £250 (or part of £250) you have over £6,000 (or £10,000), £1.00 Tariff Income will be added to your weekly income, eg £4,000 capital would mean that we have to add £16.00 to your weekly income
- £7,250 would mean that we have to add £29
- £7,251 would mean that we have to add £30
If you are aged 60 or over, tariff income only starts to apply over £10,000. Then, £1.00 tariff income is added to your income for every £500 of capital.
If your savings (or joint savings if you are a couple) exceed £16,000, you will not be entitled to Housing Benefit or Council Tax Reduction (unless you receive Guaranteed Pension Credit.)
(This calculation is laid down by the Housing Benefit Regulations and the Council Local Support Scheme and is not at the discretion of the Council.)