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Welfare Benefits Handbook 2025/26
This content was last updated:
01 Dec 2025
Chapter 16: Income: under pension age
Welfare Benefits Handbook 2025/26
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Welfare Benefits Handbook 2025/26
Part 3: Other means-tested benefits
Chapter 16: Income: under pension age
Back to previous
Chapter 16: Income: under pension age
Key facts
1. Whose income counts
2. What counts as income
Income or capital
3. Earnings
Employed earnings
What counts as earnings
What does not count as earnings
Calculating net earnings from employment
Payments when you stop work
Self-employed earnings
Calculating net earnings
Working out average earnings from self-employment
Childminders
Disregarded earnings
Disregards for income-related employment and support allowance
Disregards for housing benefit
Permitted work disregard for housing benefit
Additional disregard for housing benefit
Childcare costs disregard for housing benefit
4. Other income
Benefits
Benefits that are taken into account
Benefits that are not taken into account
Benefits that are partly taken into account
Benefit delays
Benefit deductions and overpayments
Maintenance payments
Other kinds of maintenance
If you pay maintenance
Student loans and grants
Adoption, fostering and similar payments
Charitable, voluntary and personal injury payments
Income from tenants and lodgers
Lettings without board
Boarders
Tenants in other properties
Income from capital
Tariff income from capital
Capital that counts as income
Income tax refunds
Income from employment and training programmes
Occupational and personal pensions and annuities
Mortgage and insurance payments
Social services, community care and other payments
Miscellaneous income
5. Notional income
Deliberately getting rid of income
Failing to apply for income
Income due to you that has not been paid
Unpaid wages
Income paid to someone else on your behalf
Income paid to you for someone else
Cheap or unpaid labour
6. Working out weekly income
Income-related employment and support allowance
Period covered by a payment
Date from when a payment counts
Converting income into a weekly amount
Housing benefit
Averaging earnings
Date from when a payment counts
This chapter explains the rules for working out your weekly income for income-related employment and support allowance (ESA) and working-age housing benefit (HB). The rules on how earnings are calculated also apply to your (but not your partner’s) earnings for contributory ESA and new-style jobseeker’s allowance. For pension credit and pension-age HB rules if you and your partner are over pension age, see
Chapter 17
. If you are in a couple and one of you is over pension age but not the other, see
here
for whether the working-age or pension-age HB rules apply. For universal credit (UC), see
Chapter 7
.
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CPAG. "Chapter 16: Income: under pension age." In
Welfare Benefits Handbook 2025/26.
, 2025. Accessed March 10, 2026.
CPAG,
https://askcpag.org.uk/?id=-264301CITANCHOR.
CPAG. "Chapter 16: Income: under pension age." In
Welfare Benefits Handbook 2025/26.
, 2025. Accessed March 10, 2026. https://askcpag.org.uk/?id=-264301CITANCHOR.
Contributor(s):
CPAG
Title:
Welfare Benefits Handbook 2025/26
Site name:
CPAG
Publisher:
Publication date:
March 21, 2025
Date accessed:
March 10, 2026
URL:
https://askcpag.org.uk/?id=-264301CITANCHOR
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