Means testing - the rules on capital

Whether you qualify for various means-tested benefits, and how much you will receive, may be affected by the amount of capital you have as well as your weekly income.

Put simply, the term capital covers such things as savings with a bank or building society, stocks and shares - the value of land you own or property you do not occupy.

If you have more than one of these forms of capital, they will be added together.

In the case of a married couple, the capital of both will be taken into account when either makes a claim.

Housing Benefit - rent and rates rebates

If your capital exceeds £16,000 you are excluded from housing benefit, regardless of how low your actual weekly income is.

If you have less than £16,000, the first £6,000 is completely ignored if you are aged 60 or over.

For persons under 60 the amount ignored is £3,000.

Where people have capital between these amounts, they are assumed to have a weekly income which is added on to their actual income in the assessment of entitlement (£1 for each block of £250).

Income Support, known as the Minimum Income Guarantee in the case of pensioner claimants.

The rules here vary significantly, depending on age. If you or your partner are aged 60 or over, you are excluded altogether if your capital exceeds £12,000. For persons under 60 the figure is £8,000.

Where a person or their partner is aged 60 or over, they are allowed to have £6,000 before there is any effect on their entitlement. For persons under 60, the figure is £3,000.

Where people have capital between these amounts - as above - they are assumed to have a weekly income from this of £1 for each block of £250.

Income Based Job Seekers Allowance and Working Families Tax Credit

The rules governing these benefits are the same as for persons under 60 claiming income support - see above.