About the Housing Benefit decision letter
We will send you a letter whenever we:
- Award Housing Benefit
- Change your award
- Stop your award
The letter explains how much Housing Benefit you can get and why.
How we work out your Housing Benefit
We always work out Housing Benefit as a weekly amount. If you live with a partner, we add their income to yours.
The information below shows how we calculate your Housing Benefit.
Step 1: Work out your weekly income
We add together:
- Your earnings (if you work)
- Other income, such as benefits or pensions
- Any income we assume from savings or capital
This gives us your weekly income for benefit purposes.
Step 2: Compare your income to what you need to live on
We then take away your applicable amount. This is the amount the law says you and your family need to live on.
What is left is called your excess income.
Step 3: Work out how much you must pay towards your rent
The law says you must pay 65% of your excess income towards your rent. This is called your expected contribution.
We take this amount off the maximum Housing Benefit you can get.
Step 4: Work out your Housing Benefit
- If there is money left after we do this, that is your Housing Benefit.
- If other adults live with you (called non‑dependants), we may reduce this amount.
If the result is £0 or less, it means the law says you have enough income to pay your rent and you will not get Housing Benefit.
If you get certain benefits
If you receive:
- Income Support
- income‑related Employment and Support Allowance
- income‑based Jobseeker’s Allowance
you will usually get the maximum Housing Benefit unless we have to make deductions for non‑dependants.
Earned income
If you are employed, we look at your average pay before tax.
From this, we take off:
- Tax
- National Insurance
- Half of any pension contributions
If you are self‑employed, we look at your business income and take off:
- Allowed business expenses
- Tax and National Insurance
- Half of any pension contributions
We may ignore some of your earnings. This depends on:
- The size of your family
- Whether you are disabled
- How many hours you work
We also take childcare costs into account. We can deduct up to:
- £175 a week for one child, or
- £300 a week for two or more children, depending on how many hours you work.
Unearned income
This is money you receive that is not from work. It can include:
- benefits such as Child Benefit, Universal Credit, State Pension, Personal Independence Payment and Carer’s Allowance
- private pensions
- child maintenance
- income from boarders or tenants
We do not count:
- Child Benefit
- Personal Independence Payment
- Disability Living Allowance
- Attendance Allowance
- war pensions
- child maintenance
- some income from boarders or sub‑tenants
Assumed income from capital and savings
We look at savings and capital, such as:
- bank and savings accounts
- investments
- land or property
Some items are ignored.
If you are working age, we assume you earn £1 a week for every £250 (or part of £250) over £6,000.
If you are a pensioner, we assume £1 a week for every £500 (or part of £500) over £10,000.
If you have more than £16,000, you cannot get Housing Benefit.
Applicable amount
This is the amount the government says you and your family need each week for normal living costs.
It includes:
- a basic amount based on your age and whether you are single or a couple
- extra amounts (called premiums) if you have additional needs, such as:
- dependent children
- a disability
- caring responsibilities
Maximum Housing Benefit
This is the most Housing Benefit you could get before we look at your income.
It is usually:
- your rent, minus charges Housing Benefit cannot pay (such as meals or fuel), or
- if you rent privately, the Local Housing Allowance for the type of home you need
If you are of working age and your home is larger than you need, we reduce your maximum Housing Benefit by:
- 14% if you have one extra bedroom
- 25% if you have two or more extra bedrooms
This is often called the bedroom tax.
Non‑dependant deductions
If another adult lives with you who is not your partner or a dependent child, we may reduce your Housing Benefit.
This could be:
- an adult son or daughter
- another relative
- a friend
We assume these adults help with household costs.
The deduction depends on their income and situation, not yours.
Overpayments
An overpayment happens when you are paid more Housing Benefit than you should be.
This can happen if:
- your income changes
- someone moves in or out
- your rent changes
- we do not get updated information in time
In most cases, we will ask you to pay back an overpayment.
Even if we make a mistake, we may still recover the money if you could reasonably have known something was wrong. Please check your letters and tell us if you think there is a mistake.
Changes you must tell us about
You must tell us straight away if there are changes, including:
- changes to income, savings or benefits
- you or someone in your home starts work
- changes to the income of other adults in your home
- a child leaves education or starts work
- you are away from home for more than:
- 4 weeks outside the UK, or
- 13 weeks within the UK
- someone moves in or out
- a boarder or sub‑tenant moves in or out, or their rent changes
- changes to your rent or tenancy (if you rent privately)
This is not a full list. If you are not sure, please ask us.
You can report changes in your circumstances on Report a change in circumstances – Benefits.
Telling us quickly helps us update your award sooner and avoid overpayments.
If you think the decision is wrong
If you want more information or think our decision is wrong, contact us within one month of the date of your letter.
You can appeal in writing within one month by emailing benefits@somerset.gov.uk. Please tell us which decision you are appealing and why.
We will look at the decision again. If we cannot change it, an independent tribunal will consider your appeal.