Assessed income is any money (after tax) you receive from savings, pensions and Social Security benefits less your housing costs.
Assessed income does not include income from:
- wages
- any employment related benefits such as tax credits,
- capital from your home.
Savings
The government says that we must treat your savings as if they were invested and earning an income for you. You will be charged on an assumed (or 'notional') income from your savings even if the actual amount that you get in interest is lower.
We ignore the first £14,250 of your savings but if you have between £14,250 and £23,250 we say that every £250 above £14,250 gives you an extra £1 of income per week.
If you have savings or capital (this does not include your own home) of more than £23,250 you pay, (or contribute towards direct payments), the full cost of your service.
Pensions
Examples of pensions included as income are:
- occupational/private
- state retirement
- superannuation
- pension credit
- State Earnings Related Pay (SERPS)
Social Security benefits
All benefits are included except:
- Working Tax Credit
- Disability Living Allowance (mobility component)
- Part of the highest rates of Attendance Allowance and Disability Living Allowance (care component)
Housing costs
Housing costs includes rent (after Housing Benefit) and Council Tax (after Council Tax Benefit).
The set amount includes:
- Pension Credit Minimum Income Guarantee plus 25%
- a certain amount we allow for extra costs associated with any disability you may have.
- The Pension Credit Minimum Income Guarantee is set by the Government and depends on your personal situation (for example whether you are married or have children).
