How your benefits may be means-tested

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The amount of income and capital you have can affect your eligibility for means-tested benefits.

Different means-testing rules apply, depending on whether you're under or over the minimum state pension age. The information on this page only applies to people over the current minimum state pension age (rising from 60 to 66 between 2010 and 2020).

Pension Credit

For Pension Credit, there is no upper limit of capital above which you cannot claim the benefit. Savings or capital up to £10,000, and any income generated by those savings, are ignored. You will be treated as having ‘assumed income’ of £1 for every £500 (or part of £500) of capital you have above £10,000. If you have a partner, you will be assessed as a couple and the first £10,000 of your joint capital will be ignored.

Housing Benefit and Council Tax Benefit

The lower capital limit for Housing Benefit and Council Tax Benefit is £10,000. If you have savings or capital of up to £10,000 these, and any income you receive from these savings, are ignored. You will be treated as having assumed income on capital above £10,000 as set out above.

Unlike Pension Credit, Housing Benefit and Council Tax Benefit also have an upper capital limit, which is £16,000. If you have more than this capital limit you will not be entitled to any Housing Benefit or Council Tax Benefit, unless you qualify for Pension Credit Guarantee Credit.

Capital taken into account

Most types of capital are taken into account for means-testing. This includes:

  • cash
  • money in bank or building society accounts, including current accounts that do not pay interest
  • National Savings accounts and certificates (there are special rules for valuing these)
  • income bonds
  • stocks and shares
  • property (other than your own home)
  • Premium Bonds
  • a share of any savings you own jointly with other people.

Some types of capital are ignored. This includes the value of the property you live in, if you own any, and any lump sum payments you received after deferring your State Pension.

Income taken into account

Some types of income are taken into account in full for means-tested benefits, but others, including Disability Living Allowance and Attendance Allowance, are completely ignored. Other types of income are disregarded in part.

 

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Join our campaign to help older people claim the benefits that they are entitled to.

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Age UK Advice:
0800 169 6565
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Are you entitled to more money?

Use our benefits calculator to find out what else you may be able to claim.

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Carer's Allowance

If you look after your partner, or a relative or friend who needs help because they are ill or disabled, then you are a carer and may be entitled to Carer's Allowance.

Useful information to download

  • A guide with information about claiming benefits if you're over 60.
  • An information guide about the benefits you are entitled to if you're under 60.
  • View all advice downloads
    Help with downloads

    Downloads

    What is a download?

    A download is a document (like a research report, a leaflet, or an application form) that can be transferred from our website to your computer. You can download a file, view it on your screen, print it, or save it to your computer.

    What is a PDF?

    PDF stands for ‘portable document format’.

    Most downloads on this website are PDFs. We use this format to ensure that the document looks the same on everyone’s computer (website pages, by contrast, appear differently depending on how people have set their computer up).

    How do I download a PDF?

    Computers use a program called Adobe Acrobat Reader to download PDFs. If you try clicking on a link to download a PDF and it doesn’t work, you will need to install Adobe Acrobat Reader onto your computer.

    How do I install Adobe Acrobat Reader?

    The process is quite straightforward and is free.

    1. Go to opens link in new window opens link in new window http://get.adobe.com/uk/reader/
    2. Click ‘Download’.
    3. Wait for the window to offer you the option to ‘Run’, then choose this option.
    4. Click ‘Next’.
    5. Click ‘Install’
    6. Wait for the window to offer you the option to ‘Finish’, then choose this option.

    How do I change a download?

    PDFs cannot be changed. If you need to be able to type into a downloaded document (for example, if we are offering a letter template that you need to put your name on) we will provide it as a Microsoft Word document rather than a PDF. You can then download it, type into it and save it to your computer.

    How do I print or save a download?

    Downloads will open on your computer in a new browser window.

    Inside this window (below all your web browser menus), there will be a toolbar with options for you to print or save the document.

    Close the browser window to return to the Age UK website.

    Can my screen reader read PDF downloads?

    We have made every effort to make our PDFs accessible to screen readers. Here is an overview of your accessibility options available in Acrobat Reader. Please ensure that you have downloaded the latest version of Acrobat Reader from the Adobe Reader website to ensure that they are included in your version of the programme.

    You can use Adobe Reader to read a PDF out loud with the following shortcut keys:

    • Read the document: Shift +Ctrl+Y
    • Read the open page only: Shift +Ctrl+V
    • Read to the end of the document: Shift+Ctrl+B
    • Pause: Shift+Ctrl+C
    • Stop Shift+Ctrl+E

    You can also convert a PDF into a web page by following these steps:

    • Copy the URL (web address) of the document (right-click on the link and select ‘Save target as’ or ‘Copy link’).
    • Open the Adobe online conversion tool in your browser and paste the URL into the URL box.
    • Tick the HTML box on the Format option and click ‘Convert’.

    You can convert a PDF document into a text file for use with other software and hardware such as Braille printers by opening the PDF and choosing ‘Save as text’ from the File menu.

We are grateful for the generous support of Dr Naim Dangoor CBE and The Exilarch's Foundation

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