Do my savings affect my claim?
You must tell us about all savings, bank accounts, investments
and property which you have in this country and abroad so that we
can make sure your benefit is correct. This is known as
capital.
How is it treated?
It is valued at the current market value less 10% where there is
a cost relating to the sale, such as shares. The value of any
outstanding loan or mortgage will be allowed.
How will my capital affect my claim?
The first £6,000 does not affect your claim. If you are under 60
years old for every £250 (or part) over this amount, £1.00 will be
used as income. For people over the age of 60 years old for every
£500 (or part) over this amount, £1.00 will be used as income. This
is called tariff income.
What is not included?
Some items can be ignored for a short period of time or some can
never be included.
- Your home
- Your previous home if it is up for sale
- Any property you own where an elderly or disabled relative
lives
- Any property where work is being done to make it fit to live
in
- A future interest in property. This is where you will
only get the property when an event happens.
- If you are taking legal action in order to occupy your
home
- Money from the sale of your house
- Arrears of benefits
- Special Government payments, such as former prisoners of
war