This page provides information on how savings and capital affect your benefit entitlement if you qualify for pension age benefits. Because of changes to state pension age when you count as 'pension age' is increasing gradually. If you are in a couple then, at the moment, you count as qualifying for pension age benefits if one of you is over the relevant age. However, it is expected that from July 2019 this rule will change so that the age of the youngest person in the couple will decide when a couple qualifies for pension age benefits.
If you (and your partner) have total savings and capital of £10,000 or less you do not need to enter this amount as the first £10,000 of savings is ignored, this is called the lower capital limit. If your total savings are over £10,000 please enter the total amount of savings you and your partner have and the calculator will automatically work out how much of it will count as income.
If you have more than £16,000 in capital, the upper capital limit, then you will not be entitled to Housing Benefit or Council Tax Support unless you also receive the Guarantee Credit part of Pension Credit.
PLEASE NOTE THAT THE CALCULATOR USES THE GOVERNMENT'S FORMULA FOR CALCULATING INCOME FROM SAVINGS. The amount we calculate is not meant to represent the amount of income you actually receive from your savings.
If you qualify for pension age benefits the government assumes you receive £1 per week for every £500 of savings (or part of £500) you have above £10,000.
Items counted in full include:
Note that any actual income these assets generate is ignored.
Your capital is generally valued at its current market or surrender value less 10% if there would be costs involved in selling and less any debt secured on the property.
If you own capital jointly with other people you would normally be assessed as having an equal share.
Items that are disregarded capital include:
Other disregards include:
If you deprive yourself of capital in order to increase the amount of benefit you get you can be treated as if you still had that capital, this is called ‘notional capital’. This might occur if you give money away to members of your family or buy expensive items in order to reduce your capital.
You will not be considered to have deprived yourself of capital if you have paid off debts or used money for ‘reasonable’ spending on goods and services.
If you are refused benefit because of notional capital you should seek advice and consider appealing against the decision.