IS20 - A guide to Income Support

Income and capital

The assessment of your Income Support entitlement takes into account any resources you may have. These resources can be split into income and capital; this section explains how these are calculated and how they affect rights to Income Support.

Definition of income and capital

Your income is all the money that is coming in from earnings, social security benefits, maintenance and any payments made periodically. Depending on the type of income, income is either ignored completely in the calculation of your Income Support, ignored partially (the disregards), or taken fully into account. The amount of earnings that are ignored will also depend on whether you are receiving certain premiums, whether you are a lone parent, and whether you work part-time in certain special occupations. The treatment of income is explained below. [Legislation (92)]

Capital includes your savings, investments, some lump-sum payments and the value of property and land owned but not occupied by you. For the purposes of Income Support certain types of capital are ignored, such as personal possessions and your home. If the total value of your and your partner’s capital is above £16,000, after allowance has been made for any disregarded capital, then you will not be entitled to Income Support until it falls below that level. There are special rules if you have deprived yourself of your capital for the purpose of getting Income Support. Go to our section on capital for more information on the treatment of capital.

Previous / Contents / Next

back to top