Housing benefit calculation rates 2023 to 2024

These figures come into effect on:[1]

• Saturday 1 April 2023 – where rent is payable monthly or at any interval which is not a week or multiples of a week

• Monday 3 April 2023 – where rent is payable at intervals of a week or multiples of a week

Detailed guidance from the Department for Work and Pensions on the 2023/24 up-rating is contained in HB Circular A1/2023.

The claimant's applicable amount is the figure set by the Department for Work and Pensions to reflect the basic living needs of the claimant and their family. The 'applicable amount' is calculated by adding together the relevant 'personal allowances' and 'premiums'.

The claimant's applicable amount is calculated by adding together all the relevant personal allowances and premiums.

Dependent child/young person aged under 20

From 6 April 2017 there is a two-child or young person limit on the number of personal allowances awarded (for dependent children/young persons) unless either of these exemptions apply:[2]

• the claimant was receiving a personal allowance for three or more children on 5 April 2017

• three or more children are included in the assessment of the claimant's child tax credit (CTC) claim

Claimants who reach pension age on or after 1 April 2021

From 1 April 2021 new personal allowances are in place for housing benefit claimants who reach pension age on or after 1 April 2021.[3] HB Circular A3/2021 circular provides further information.

Tables: Personal allowances 2023 to 2024

Some claimants qualify for one or more additional amounts called premiums. Entitlement to some premiums is triggered by certain qualifying social security benefits. There are no limitations on how many premiums can be awarded to a claimant.

Family premium

From 1 May 2016 only an existing claimant who already qualified for the family premium is entitled to have this premium included in their applicable amount. If such a claimant then ceases to qualify for the family premium they cannot qualify for it again at a later date.[4]

Family premium (lone parent)

Only applies to lone parents who fulfilled certain conditions before 6 April 1998 and if certain changes of circumstances have not occurred after that date.[5]

Tables: Premiums

Capital means savings, investments and the value of property or land owned but not occupied by the claimant.

For claimants who are in a couple the capital of their partner is also taken into account.

Under the cut-off age for working age housing benefit

The capital of a claimant under the cut-off age for working age housing benefit is treated as follows:[6]

• first £6,000 of capital is not counted

• capital between £6,000 and £16,000 is taken into account at a tariff income of £1 per week for each £250 (or part of £250) of capital over £6,000

• capital over £16,000 is not eligible for housing benefit

Over the cut-off age for working age housing benefit

The capital of a claimant over the cut-off age for working age housing benefit is treated as follows:[7]

• first £10,000 of capital is not counted

• capital between £10,000 and £16,000 is taken into account at a tariff income of £1 per week for each £500 (or part of £500) of capital over £10,000

• capital over £16,000 is not eligible for housing benefit unless claimant is in receipt of pension credit (guarantee) where there is no upper limit

Residential care homes

The capital of a claimant of working age who is in a residential care home is treated as follows:[8]

• first £10,000 of capital is not counted

• capital between £10,000 and £16,000 is taken into account at a tariff income of £1 per week for each £250 (or part of £250) of capital over £10,000

• capital over £16,000 is not eligible for housing benefit

The cut-off age for working age housing benefit

From 6 April 2010 the age at which a claimant, whether male or female, ceased to be a housing benefit claimant of working age increased in line with the state pension age for women.

The state pension age for:

• women increased from 60 to 65 in the period up to April 2018

• men and women will increase from 65 to 66 between April 2018 and October 2020

• men and women will increase to 67 between 2026 and 2028

The Gov.uk state pension calculator can be used to calculate a claimant's pension age.

The calculation of housing benefit takes into account the claimant's financial resources. Certain earnings, income and capital are disregarded.

Only the more common disregards are set out on this page. Full details of disregards are found in the Housing Benefit regulations.[9]

Tables: Main earnings disregards

Deductions for non-dependants, meals and fuel charges applicable when calculating housing benefit.

It is assumed that a non-dependant adult living with the claimant makes contributions towards the rent, whether such contributions are made or not, and therefore housing benefit is reduced by an amount as set out below. Deductions are made per each non-dependant adult (for example a son, daughter, friend or relative living with the claimant).

Tables: non-dependant deductions

Housing benefit does not cover charges for meals. If these are included in the rent, a fixed-rate deduction is made from the claimant's rent when calculating housing benefit. The fixed weekly amounts are set out below.

Tables: meals deductions

Housing benefit does not normally cover water rates, fuel costs or certain other services. If these charges are included in the rent, a deduction is made from the claimant's rent when calculating housing benefit. If known, the actual amount of the charges is deducted; otherwise the fixed weekly amounts as set out below are deducted.

Tables: Fuel charge deductions