TEST OF RESOURCES FOR MAJOR ADAPATIONS OR MINOR ADAPTATIONS WHERE YOU ARE NOT RECEIVING EITHER FULL HOUSING BENEFIT OR FULL COUNCIL TAX BENEFIT

The test is only applied to the disabled occupant, their spouse or partner. 

Each means-tested person's expenditure needs are assessed by awarding

• allowances in respect of each person or couple and any dependent children.
• A variety of premiums may also be awarded in respect of special needs such as lone parenthood, disability and old age.
• An allowance of £61.30 per week is awarded towards housing costs. A summary of the allowances and premiums is provided below.
• The net income of each means-tested person and their partner is taken into account.
• Some types of income are disregarded such as housing and council tax benefit, disability living allowance and attendance allowance as well as between £5 and £25 per week of earnings, depending on each person's circumstances.
• Unlike housing benefit, there are no deductions for "non-dependents" although a proportion of any payments from boarders etc will be included as income.
• The following can be passported to a 100% grant upto the maximum grant limit without being subject to a full means test. This means that 100% funding is guaranteed unless there are others being assessed who are not receiving such benefits. A person in receipt of:               Income Support, or                                                                                           Income Based Job Seekers Allowance, or                                                            Housing / Council Tax benefit                                                                                   The Guarantee Credit part of Pension Credit                                                          Working Tax Credit, or                                                                                             Child Tax Credit, and                                                                                             Whose annual income for the purposes of Working Tax Credit or Child Tax Credit has been calculated as being less than £15,050 per annum.   
• The capital threshold for grant purposes is £6,000 and capital up to this amount is excluded from the test of resources. Tariff income at a rate of £1 per week per £250 is applied to any capital above this value. Where the relevant person is aged 60 or over, this tariff is £1 per week per £500.
• Where the total income of all those means-tested equals or is below the applicable allowances and premiums, the applicant will be entitled to grant equivalent to the full cost of the approved works, or a maximum limit of £30,000.
• Any income that exceeds that threshold is subjected to a loan generation factor which, as the excess income rises, gradually increases the amount of income per pound regarded as available to help finance the works.
• In the case of tenants, the notional loan assumes a five year repayment period. In either case, the amount of grant payable is the excess of the cost of the approved works over the notional loan. The loan generation factors are shown below.

Uprated allowances, premiums and factors from 25 May 2008

[1]The ages of Children and Young Persons are taken from the first Monday in September following each birthday.

(Note the above extract has been taken from the DCLG website)

Example A

Mrs X is 74 yrs old, lives alone and there is no carer.

Mrs X receives £110 per week retirement pension and £20 per week private pension

She has £20,000 savings

Capital calculation

£20000 – 6000 (disregard) = £14,000

£14,000 ¸500 = £28 tariff income

Mrs X total income is

£130 per week from pensions

£28 tariff income from savings

£158 total income

Allowances and premiums allowed for Mrs X is

£143.80 single person

£61.30 Housing Premium

£205.10 is her total allowance

Mr Y is 80 yrs old, lives alone and there is no carer.

Mrs Y receives £110 per week retirement pension and £90 per week private pension

He has £30,000 savings

Capital calculation

£30000 – 6000 (disregard) = £24,000

£24,000 ¸500 = £48 tariff income

Mr Y total income is

£200 per week from pensions

£48 tariff income from savings

£248 total income

Allowances and premiums allowed for Mr Y is

£143.80 Over 65 single person allowance

£61.30 Housing Premium

£205.10 is his total allowance

Excess Income x loan generation factors

£42.90 x 11.04 = 473.62

Mr Y contribution towards the work is £473.62.