Financial Eligibility Formula

How we assess financial eligibility if you are not in receipt of means-tested benefits

We use the standard Government measure of the After Housing Cost “poverty line” which is 60% of median income.  The latest figures that are available (2021/22) have this figure as a weekly income after housing costs of £300 for a couple.

The Income After Housing Costs is worked out as the total weekly income (including tax credits, child benefit but excluding Disability Living Allowance/Personal Independence Payment) minus rent, council tax, water and service charge.

We also add an additional 25% onto the ‘poverty line’ to take into account those that are just above the poverty line and who miss out on eligibility for various benefits and services.  Therefore the maximum income that a couple can receive weekly to be eligible for our grants is £375.

This income is then ‘equivalised’ depending on the number of the people in the household.  Essentially, the income that a household needs to attain a given standard of living will depend on its size and composition. For example, a couple with dependent children will need a higher income than a single person with no children to attain the same living standards.  There is a standard equivalisation rate that is used for After Housing Costs.  This rate is:
Primary Adult                                  0.58
Second person (14 or over)          0.42
Child under 14                                 0.2

What this means is that a person living on his/her own would have to be earning a maximum of £218 per week after housing costs to be eligible.  This is worked out by the following formula:
        £375 [Walcot Eligibility line] x 0.58 [primary adult equivalisation rate].

For a couple with 2 children (one aged 15 and one age 3), they would need to be earning a maximum of £608 per week after housing costs to be eligible.  This is worked out by the following formula:
        £375 [Walcot Eligibility line] x 1.62 [which is first adult rate (0.58) plus two over 14s (0.42+0.42) plus one child rate (0.2)]

For students aged under 25 and still living at home with parent[s]/carer[s], we look at the parent[s]/carer[s]' income and the parent's dependent children.  So for example, a 20 year old student is living with her mother, her older sister (aged 24) and two younger brothers (aged 15 and 8).  In this scenario, the mother would need to be earning a maximum of £450 per week after housing costs to be eligible. As the financial eligibility is calculated on the basis of the parent's income and the parent's dependent children, the student and the older sister are not included in the calculation.  The eligibility is worked out by the following formula:
        £375 [Walcot Eligibility line] x 1.2 [which is first adult rate (0.58) for the mother plus one child aged 15 (0.42) plus one child aged 8 (0.2)]

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