Income From Capital

Frequently Asked Questions

• How does your Capital affect your income for Housing/Council Tax Benefit purposes?
• How is tariff income calculated?
• Are you a Pensioner?
• Is there a limit to the amount of Capital that can be held?

How does your Capital affect your income for Housing/Council Tax Benefit purposes?

If your capital is over £6,000 you are treated as having an assumed income. This is called 'Tariff Income'.

How is tariff income calculated?

Tariff income is calculated as follows:

The first £6,000 of your savings is disregarded (ignored).

For every £250 (or part of £250) you have over £6,000, we have to add £1.00 "Tariff Income" to your weekly income.  

Example :-

• £4,000 capital would require us to add £4 to your weekly income.
• £7,250 would require us to add £17
• £7,251 would require us to add £18

A person who is receiving Incapacity Benefit of £69.75 per week and has savings of £4,000 would therefore have a weekly household income for Benefit purposes, made up as follows:

• Incapacity benefit: £69.75
• Tariff Income from Capital: £4.00
• Total: £73.75

Are you a Pensioner?

If you and your partner are aged 60 or over, tariff income will only be used if your capital exceeds £6,000.

But, for every £500 (or part of £500) you have over £6,000, we will add £1 "Tariff Income" to your weekly income.

The calculation is not based on actual interest paid on savings.

Is there a limit to the amount of Capital that can be held?

If your savings exceed £16,000 you will not be entitled to Housing Benefit or Council Tax Benefit.

This calculation is laid down by Central Government and is not at the discretion of Tameside Metropolitan Borough Council

If you have any queries regarding savings and Tariff Income please ask the Customer Services staff who will be pleased to help you.

For further information please contact

Contact Information
Send us a Message	Revenues Division Exchequer and Support Services Tameside MBC Council Offices Wellington Road Ashton under Lyne Lancs OL6 6DL View local map
0161 342 3708
0161 342 2676/2012
Customer Service Centres