If you have any savings or investments these can be counted as income too. This includes redundancy payments. The rules for the assessment of savings are different for ‘working age’ (under pensionable age) claims and ‘pension age’ claims:
Working age (under pensionable age)
If you have savings of £16,000 or more you will not be entitled to any Housing Benefit. If you have savings of over £6,000 this will affect the amount of Housing Benefit you will get.
If you get the means tested Pension Credit then there is no upper capital limit. Otherwise the upper capital limit is £16,000. If you don’t get the means tested Pension Credit, the first £10,000 of capital is ignored and thereafter income is calculated at £1 for every £500 band of capital up to £16,000.
From April 2010 the pensionable age for women will be gradually raised, ending in April 2020 when the pensionable age for both men and women will be equal at 65. Use the state pension age calculator on the Directgov website to work out when you will be of pensionable age.