Guarantee credit

There are three steps for calculating your entitlement to guarantee credit.1s2(2) SPCA 2002

 

1     s2(2) SPCA 2002 »

Step one: calculate your appropriate minimum guarantee

This is the minimum weekly income the government decides you need to live on. It is made up of fixed amounts depending on your personal circumstances:1s2(3) SPCA 2002; Schs 1 and 2 SPC Regs

•the standard minimum guarantee of £177.10 if you are single, or £270.30 if you have a partner;
•a severe disability addition of £67.30 if you satisfy the conditions that apply for the income support (IS) severe disability premium (see here);
•a carer addition of £37.70 if you satisfy the conditions that apply for the IS carer premium (see here);
•eligible housing costs if you are a homeowner – ie, certain service charges. The rules about who can get help with housing costs and how much you get are explained in CPAG’s Welfare Benefits and Tax Credits Handbook;
•an additional amount for dependent child(ren). This may apply if you are responsible for a child or qualifying young person and you are not getting CTC for her/him. The amount for the eldest or only child if s/he was born before 6 April 2017 is £65.10. The amount for any other children is £54.60. An additional £92.54 is added if the child is severely sight impaired or blind or is entitled to the highest rate of the care component of DLA or the enhanced daily living component of PIP. Alternatively, an additional £29.66 is added if the child gets any other rate of DLA or PIP.2Sch IIA paras 9 and 10 SPC Regs

 

1     s2(3) SPCA 2002; Schs 1 and 2 SPC Regs »

2     Sch IIA paras 9 and 10 SPC Regs »

Step two: work out your weekly income

This is the amount you have from any pension and other sources each week. Not all your income counts. For details, see CPAG’s Welfare Benefits and Tax Credits Handbook.

See the relevant chapters of this Handbook for how specific income (eg, fostering allowances and payments from the local authority) is treated.

Step three: deduct income from appropriate minimum guarantee

The resulting amount is your guarantee credit. If your income is more than your appropriate minimum guarantee, you are not entitled to guarantee credit.