How your benefits are means-tested

If a benefit is means-tested, this means that your eligibility to claim it and how much money you receive will depend on your income and how much capital you have. The information in this section only applies to people over State Pension age.

Which benefits are means-tested?

The means-tested benefits are: 

• Pension Credit
• Housing Benefit
• The Council Tax Reduction Scheme
• Cold Weather Payment

What is included in a means-test?

Some types of income are fully considered when assessing whether you’re eligible to claim a means-tested benefit, but others (such as if you receive Attendance Allowance) are ignored. Your partner’s income and capital may also be taken into account.

Capital includes savings and investments. Examples of capital taken into account in means tests include:

• cash
• stocks and shares
• a share of any savings you own jointly with other people
• property other than your main home
• Premium Bonds
• National Savings accounts and certificates (there are special rules for valuing these).

Any lump sum payments you received from deferring your State Pension is not included as capital.

What are the capital limits for means-tested benefits?

Your income and capital must be below a certain limit for you to be eligible to claim any means-tested benefit. This level is an estimate of the amount you need to live on and is set by the government. If your income and capital are greater than this level then you may not be eligible to claim, or you may receive a reduced amount.

You can refer to the pages on our website covering the means-tested benefits listed above for full information, or read the following guides and factsheets.

What should I do next?