Income support is worked out by comparing your needs with your resources (ie any income or capital you may have). If you are a single person, only your needs and resources are relevant. If you are one of a couple, the needs and resources of both of you are relevant.

If you have dependent children living with you, their needs and resources will be ignored, unless your claim for income support began before April 2004 and you continue to receive support for your children through income support rather than child tax credit.

Set amounts for different needs are added together to reach the total amount the law says you need to live on. This is called your ‘applicable amount’. Any income you have (worked out under set rules) is deducted from your applicable amount. This leaves the amount of income support you are entitled to. The calculation follows the same steps as for income-related employment and support allowance (see Chapter 20(5)).