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Personal Allowances and Housing Costs

Information on personal allowance thresholds applicable housing costs.

Personal Allowance

Each user of non-residential social care services will be allocated a personal allowance based on their individual circumstances. A personal allowance is the level of weekly income below which someone cannot be asked to pay care and support charges and will be deducted from income used in the assessment.

The basis of the personal allowance is linked to rates set by the DWP for income support personal allowances, disability premiums and pension credit. In order to provide more help to those on low incomes and to recognise that not all of someone's income above these rates should be taken in contributions, a buffer of 25% is included in the personal allowance threshold levels set out below.

Personal Allowance Thresholds from 1st April 2023

Single person under pension qualifying age£156
Couple under pension qualifying age£238
Single person over pension qualifying age£252
Couple over pension qualifying age£384

Personal Allowance Thresholds from 1st April 2022

Single person under pension qualifying age£142
Couple under pension qualifying age£216
Single person over pension qualifying age£228
Couple over pension qualifying age£348

Applicable Housing Costs

The income used in the assessment s will be reduced by any applicable housing and council tax costs. Housing costs include rent, mortgage and Council Tax payments (including water and sewerage charges) which are due to be paid after any Housing Benefit, Universal Credit or Council Tax Reduction is taken into consideration.

Where someone is part of a couple only 50% of the applicable Housing Costs outlined above will be considered.

For adults living at home who are not liable for rent or council tax an allowance, which is an assumed applicable housing cost figure, will be used to reflect the individuals contribution towards the rent, mortgage and Council Tax payments of the household. The level of this assumed contribution is in line with the Department for Work and Pensions guidance on non-dependant deductions.