What is disposable income ?
For the purposes of calculating whether you are entitled to legal help and similar services the Legal Services Commission will deduct the following from your income:
a) Deduction of a certian amount depending on how many dependent children you have, (see FactSheet).
b) Tax and National Insurance.
c) Maintenance you are paying to your wife/husband of former wife/husband or a child or relative, (who are not members of your current household).
d) Housing costs, for example mortgage or rent, (less any housing benefit). This also includes council tax, water rates, insurance premiums and other costs associated with where you live. There is a maximum figure of £545 per month if you have no dependents. Otherwise the full value of your housing costs can be taken into account.
e) Employment related expenses, for example travel costs. This figure is a set of £45 per month.
f) Childminding charges, these are only deductible if you are receiving a wage or salary and actually pay private childminding charges. Deduction can only be made for children 15 or under, (unless they are disabled in which case there will be no limit on age).
g) If you are in receipt of certain state benefits on top of your income then these will be disregarded, (examples are disability living allowance, invalid care allowance, council tax benefit, housing benefit, payments out of the social fund etc).
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