State benefits

Universal credit is the main benefit to replace employment income for anyone 18 and over. If you’re on a low income or not working and you and your partner have less than £16,000 in savings you can apply.

The amount of Universal Credit you receive depends on your situation. Having children, a disability or housing costs can all increase the amount of support you receive.

Council Tax can be a significant cost, adding up to thousands of pounds every year. You might be eligible for Council Tax Reduction, or some financial support towards your Council Tax bill.

If you have savings under £16,000 and a low income, you may be eligible for support. If a couple, they’ll consider the income and savings of both you and your partner.

In Northern Ireland, Council Tax Reduction is known as ‘Rate Relief’. You can find more information about applying for Rate Relief on the NI Direct website.

Your Council Tax bill can also be reduced in some other situations:

• 25% discount if you're living alone or if the other person you live with has a severe mental impairment. This could be a diagnosis of Alzheimer's or Dementia or something else that affects cognition like a stroke or Parkinson's.
• A band reduced or one sixth taken off if you are in Band A, if your home has features to make it suitable for a disabled person to live in. This might be space for wheelchair access or a room mainly used by the disabled person.

And you may not have to pay Council Tax at all if:

• Your home has been left unoccupied because of a hospital or care home stay.
• The only person living at the property has limited capacity. For example, if they have been diagnosed with Dementia, Alzheimer’s disease or a learning disability.

If you provide 35 hours a week of care and earn less than £196 a week after tax, NI and pension contributions, you may be eligible for Carers Allowance. Note: this is called Carers Support Payment in Scotland.

To claim Carers Allowance, the person you care for must receive a disability benefit, such as:

• Disability Living Allowance (care component – middle or high rate)
• Personal Independent Payment (daily living component – standard or enhanced
• rate)
  Adult Disability Payment (daily living component - standard or enhanced rate)

If you’re getting a benefit to replace income from employment, like new-style ESA, this may affect whether you can receive Carers Allowance. This is because your income from these benefits may be higher than the £83.30 a week you can get from Carers Allowance.

Note: Carers in Scotland are also eligible for a Carers Allowance Supplement which is paid twice a year in December and June. The December payment was £288.60.

It’s sometimes called Guarantee Credit and it’s there to top up weekly income to £227.10 for a single person, and for couples £346.60 a week. So, if you're a single person and your total income from pensions is £150, you could be entitled to £77.10 Pension Credit.

It can be increased in certain situations, for example:

• if you have a disability and count as 'living alone' the amount you need to live on each week increases by £82.90;
• if you are a carer your weekly total amount may increase by £46.40;
• if you have certain housing-related costs, such as services charges or ground rent.

If you have more than £10,000 in savings, either as a single person or a couple, it will limit how much Pension Credit you can receive. Your savings over this amount will be converted to ‘tariff income’ at a rate of £1 for every £500, or part of £500, you have.

So, if you and your partner have combined savings of £13,150, you’ll be treated as having an extra £7 of tariff income each week. This is because you have six complete sets of £500 over £10,000, plus an extra £150.

You could also get full Council Tax Relief, Housing Benefit if you rent, the Winter Fuel Payment (worth either £200 or £300 in England, Wales and NI. In Scotland the Winter Heating Payment is £58.75) and the Warm Home Discount Scheme (worth £150).

Savings Credit is another type of Pension Credit you could apply for if you reached State Pension age before 6 April 2016. It’s means-tested and designed for people who have saved some money towards retirement, for example, with a small private pension. It pays up to £17.30 a week for a single person and £19.36 for a couple.

Unlike Pension Credit, receiving Savings Credit doesn’t guarantee you’ll also get Housing Benefit or a reduction in Council Tax.

Example

George and Anne are in their 70s and both receive their State Pension. George also has a small pension from his old work. In total, this comes to £235 per week. Their combined savings are around £14,000, giving them a tariff income of £8 (8 x £1 for every £500 over £10,000).

£235 plus £8 brings their total income for the purposes of Pension Credit to £243. Their guaranteed income through Pension Credit, as a couple, is £346.60. This means they will be entitled to £103.60 per week.

Council Tax can be a significant cost, adding up to thousands of pounds every year. You might be eligible for Council Tax Reduction, or some financial support towards your Council Tax bill.

If you have savings under £16,000 and a low income, you may be eligible for support. If a couple, they’ll consider the income and savings of both you and your partner.

In Northern Ireland, Council Tax Reduction is known as ‘Rate Relief’. You can find more information about applying for Rate Relief on the NI Direct website.

Your Council Tax bill can also be reduced in some other situations:

• 25% discount if you're living alone or if the other person you live with has a severe mental impairment. This could be a diagnosis of Alzheimer's or Dementia or something else that affects cognition like a stroke or Parkinson's.
• A band reduced or one sixth taken off if you are in Band A, if your home has features to make it suitable for a disabled person to live in. This might be space for wheelchair access or a room mainly used by the disabled person.

And you may not have to pay Council Tax at all if:

• Your home has been left unoccupied because of a hospital or care home stay.
• The only person living at the property has limited capacity. For example, if they have been diagnosed with Dementia, Alzheimer’s disease or a learning disability.

If you’re renting your home, Housing Benefit can help you to cover some or all of the cost of rent. To be eligible, you need to be responsible for rent payments and either be receiving Pension Credit or have savings under £16,000. Note these are your combined savings if you are a couple.

If you are of working age, then Housing Benefit is typically paid as part of another benefit called Universal Credit.

The maximum Housing Benefit you can receive if you’re renting from a private landlord is set by the Local Housing Allowance (LHA). You can find out the LHA for your area on the Government website.

If you rent from a ‘social landlord’, like your Council or a Housing Association, you may have your full housing costs covered by Housing Benefit. This will depend on your income or whether you receive Pension Credit.

Get in touch with your local authority to ask for an assessment for Housing Benefit.

If you’re getting a benefit to replace income from employment, like the State Pension, then you can’t get paid Carers Allowance as well. This is because your income from these benefits is likely to be higher than the £83.30 a week you can get from Carers Allowance (CA). However, you may still have an ‘underlying entitlement' to CA which can increase other benefits like Pension Credit.

To claim Carers Allowance, the person you care for must receive a disability benefit, such as:

• Disability Living Allowance (care component – middle or high rate)
• Personal Independent Payment (daily living component – standard or enhanced rate)
• Adult Disability Payment (daily living component - standard or enhanced rate)

Note: Carers in Scotland are also eligible for a Carers Allowance Supplement which is paid twice a year in December and June. The December payment was £288.60.