Shropshire Council

Capital and savings

What are capital and savings?

For housing benefit and council tax support purposes, capital means any savings and investments held by you or your partner (if you have one), including any money you have held in current accounts.

This means everything held in all types of account, bank accounts, supermarket saving accounts, internet bank accounts, building society accounts, post office accounts, ISAs, TESSAs or PEPS, National Saving Certificates, Premium Bonds, stocks and shares, redundancy pay and tax refunds. It also includes the value of any land or property you or your partner own.

What if I already receive a means tested benefit?

If you (or your partner) already receive a means tested benefit, for example:

  • Income support
  • Jobseekers allowance (income based)
  • Employment and support allowance (income related)
  • Pension credit (guaranteed credit)

...any capital held by you (or your partner) won't normally affect your claim with us.

What if i'm not in receipt of any means tested benefits?

If you (or your partner) don't already receive any means tested benefits, your capital and savings may affect any benefit you may get.

How does my capital and savings affect housing benefit?

If you (or your partner) have capital of £16,000 or more you won't normally qualify for housing benefit.

If you (or your partner) are of working age, any combined capital under £6,000 is ignored.

If you (or your partner) have reached pension age, any combined capital under £10,000 is ignored completely when we're working out the amount of benefit you will get.

How does my capital and savings affect council tax support?

If you (and your partner) have capital of £10,000 or more you won't normally qualify for any council tax support.

If you (or your partner) have reached pension credit age and have capital of £16,000 or more, you won't normally qualify for council tax support.

If you (or your partner) are of working age, any combined capital under £6,000 is ignored.

If you (or your partner) have reached pension age, any combined capital under £10,000 is ignored completely when we're working out the amount of benefit you will get.

If I have capital over the limits detailed above, how does this affect my benefit?

If you do have capital, we take this into account using a system called tariff income. This is explained below:

  • If you (and your partner) are of working age, when calculating your income, we'll add £1 per week for every £250 (or part thereof), that you have over £6,000 
  • If you (or your partner) have reached pension age, when calculating your income, we'll add £1 per week for every £500 (or part thereof) that you have over £10,000

Is there any capital that you don't take into account?

There are items of capital that aren't taken into account when we work out your entitlement to benefit. For example:

  • The home you own and live in
  • A self-employed person's business assets
  • Arrears of certain state benefits
  • Certain compensation payments
  • A life insurance policy which hasn't been cashed in

Please contact us if you need any more information about this and other disregards.

What proof do I need to send to the Benefits Service?

When you apply for benefit, you'll need to send proof of all the capital and savings held by you and your partner (if you have one). Listed below is the proof you'll need to provide. (It's important that all the documents you provide are originals. We can't accept photocopies).

Please note that these are only examples and don't cover all types of capital and savings. For further help or guidance, contact us.

  • If you have any bank accounts (including current accounts), building society accounts, post office accounts or any other sort of savings account, you will need to provide statements covering the last two months showing all debits, credits and a balance
  • If you have any savings bonds, unit trusts, stocks and shares, National Savings Certificates or Premium Bonds, you'll need to provide your statement or certificate
  • If you have any cash holdings (for example, cash that you do not have in a bank or building society account), you'll also need to tell us about this
  • If you or your partner own any land or property (other than the home you live in), you'll need to provide full details of the address, the area it is located in, what it's used for and an approximate valuation. Please complete the valuation form on this page

Please note that if you receive income support, jobseekers allowance (income-based), pension credit or employment and support allowance (income-related), you won't have to send us any proof of your capital or savings, as you'll already have given this information to the Department for Work and Pensions.

If you need more information on capital and savings, please contact us.